Crisis as SERAP Sues 36 Governors, FCT Minister Over FAAC Allocations

The Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against Nigeria’s 36 state governors and the Minister of the Federal Capital Territory (FCT), Nyesom Wike, for their failure to account for the spending of trillions of naira received from the Federation Account Allocation Committee (FAAC) since 1999. This significant move was announced in a release on Sunday by SERAP’s Deputy Director, Kolawole Oluwadare.

The lawsuit, numbered FHC/ABJ/CS/666/2024, was filed last Friday at the Federal High Court in Abuja. SERAP has requested the court to compel the governors and Wike to publish detailed accounts of how FAAC allocations have been spent by their states and the FCT. This includes a comprehensive list and locations of projects executed with these funds.

The organization has also asked the court to mandate the governors and Wike to invite the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate any allegations of corruption linked to these allocations and to monitor how the money is spent going forward.

The lawsuit follows reports indicating that FAAC disbursed N1.123 trillion to federal, state, and local governments for March 2024, and N1.208 trillion in April. Specifically, states collected N398.689 billion in March and N403.403 billion in April. Despite these significant allocations, SERAP argues that there is a lack of transparency in how these funds have been utilized, leading to widespread public concern about mismanagement and corruption.

SERAP's deputy director stated, "Nigerians ought to know in what manner public funds, including FAAC allocations, are spent by the governors and FCT minister." The organization stressed that the opacity surrounding the spending of FAAC allocations continues to negatively impact the fundamental interests of citizens. They believe that directing and compelling the governors and the FCT minister to provide the sought information and widely publish the spending details would serve legitimate public interests.

According to SERAP, the failure of the governors and the FCT minister to account for the FAAC allocations is inconsistent with the Nigerian Constitution (1999, as amended) and the country’s international anti-corruption obligations. The organization maintains that transparency in the spending of these allocations is crucial for allowing Nigerians to retain control over their government and ensuring public funds are used effectively.

SERAP highlighted that trillions of naira received from FAAC by the 36 states and the FCT have allegedly been mismanaged. They pointed to issues such as diversion of funds, abandoned projects, and the use of allocations for election campaigns and political patronage rather than for their intended purposes. This mismanagement has led to millions of Nigerians continuing to face extreme poverty and lacking access to basic public goods and services despite increased allocations.

In their suit, SERAP demands that the governors and the FCT minister provide detailed information on several fronts, including:

1. **List and Locations of Projects**: Details of specific projects completed with the FAAC allocations and their locations.

2. **Completion Reports**: Reports on the completion status of these projects.

3. **Salaries and Pensions**: Information on salaries and pensions paid from the FAAC allocations.

4. **Public Services**: Details of projects executed on hospitals and schools with the FAAC allocations.

SERAP also calls for EFCC and ICPC to investigate any instances of corruption linked to the FAAC allocations. This includes monitoring future spending to ensure funds are used appropriately and for the benefit of the citizens.

The reported removal of petrol subsidies and the floating of the exchange rate by the Federal Government has resulted in increased FAAC allocations to states and the FCT. However, there has been no corresponding improvement in the security and welfare of millions of Nigerians. This discrepancy suggests that significant portions of the allocations are being mismanaged or diverted.

SERAP’s lawsuit represents a critical effort to promote transparency, accountability, and good governance in Nigeria. By pushing for the publication of spending details and the investigation of potential corruption, SERAP aims to reduce the risks of corruption and ensure that public funds are used effectively to improve the lives of Nigerians.