Governors Reject Mismanagement Claims Over ₦15.8tn Subsidy Savings As Atiku Demands Accountability

Governors Reject Mismanagement Claims Over ₦15.8tn Subsidy Savings as Atiku Demands Accountability The 36 state governors have rejected allegations that state governments mismanaged the financial gains from the removal of petrol subsidy, amid a fresh dispute over the ₦15.8 trillion in resources freed for the federation between June 2023 and December 2025. The controversy followed a disclosure by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, that the removal of petrol subsidy had freed ₦15.8 trillion for the three tiers of government during the period under review. Oyedele said the Federal Government received ₦5.4 trillion, while ₦10.4 trillion was distributed to state and local governments through the Federation Account Allocation Committee (FAAC). The disclosure has triggered renewed debate over how the additional revenues generated by the subsidy removal have been utilised, with former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, accusing the government of failing to properly manage the savings. Atiku has also proposed a possible return of petrol subsidy if elected in 2027, arguing that the policy has imposed severe hardship on Nigerians without sufficient measures to protect citizens from its consequences. The Presidency, however, rejected the proposal, warning that a return to petrol subsidy would revive fuel scarcity and place additional pressure on government finances. The Federal Government has instead challenged state governors to account for the increased revenues they have received since the subsidy was removed. Responding to the allegations, the 36 governors, under the umbrella of the Nigeria Governors’ Forum NGF, dismissed claims that states should accept responsibility for the alleged mismanagement of subsidy savings. The NGF Chairman and Kwara State Governor, AbdulRahman AbdulRazaq, spoke through Bayelsa State Governor Douye Diri after the Forum’s third meeting in Abuja. When asked whether the governors would accept the blame for failing to properly account for funds received following the subsidy removal, Diri dismissed the suggestion. The governors maintained that the issue required further debate rather than accepting the allegation that state governments had improperly managed the increased allocations. The disagreement has further intensified the political debate over whether the additional revenue generated by subsidy removal has translated into meaningful improvements in the lives of Nigerians. At the meeting, the governors also expressed support for the proposed National Affordable CNG Transit Programme NACTP, a state-led initiative designed to reduce transportation costs by taking advantage of the lower operating costs of compressed natural gas CNG. The programme is expected to involve state support for CNG vehicle conversions, vehicle fleets and related infrastructure, alongside commitments by transport operators to reduce passenger fares. Governor Diri said the programme would focus on reducing transport costs because the cost of moving people and goods directly affects the prices of food and other essential commodities. The governors said the details of the programme, including its implementation timeline, would be worked out between the NGF and its proponents. President Bola Ahmed Tinubu has meanwhile directed the rollout of 500 additional CNG refuelling stations nationwide, bringing the planned number of stations under the Presidential CNG Initiative to 1,000. Tinubu said more than 120,000 vehicles had already been converted to CNG nationwide, with more than 100,000 additional conversion kits in production. He also disclosed that the Federal Government was financing more than 100 gas projects through the Midstream and Downstream Gas Infrastructure Fund, including 15 CNG mother stations and 86 daughter stations. According to the President, a vehicle running on CNG can spend between 60 and 80 per cent less on fuel than one running on petrol.He said the government’s target was for Nigerians to begin benefiting from lower transport fares from October 1, stressing that cheaper fuel should translate into cheaper transportation. The Federal and state governments have also agreed to establish a joint committee to begin implementing measures aimed at reducing transportation costs. Meanwhile, Atiku has raised fresh questions over the Federal Government’s reported ₦600 billion cash transfer programme, demanding details of the beneficiaries.The Presidency had previously announced that its expanded cash transfer programme had reached 15 million vulnerable households. However, Minister of Humanitarian Affairs Bernard Doro later said that slightly more than 10 million households had been reached. Atiku questioned the discrepancy between the figures released by the Presidency and those provided by the minister. He also questioned the financial arithmetic surrounding the programme, noting that if 10 million households received ₦25,000 monthly for three months, the total would be about ₦750 billion, while payments to 15 million households would exceed ₦1.1 trillion. He therefore demanded that the administration publish details of the households that actually received the funds. The Minister of Information and National Orientation, Mohammed Idris, has continued to defend the Tinubu administration’s economic reforms, arguing that the removal of petrol subsidy has created additional fiscal space for governments at all levels. Idris said the reforms had strengthened the ability of the Federal Government and states to finance infrastructure, education and other critical sectors. He argued that the subsidy system had consumed resources that could otherwise have been deployed to development projects. The minister also maintained that the government inherited a difficult economic situation, with several states previously struggling to meet their salary obligations. He warned that reversing the subsidy policy could undermine the gains achieved so far. The dispute over subsidy savings comes as political parties intensify preparations for the 2027 general elections. Atiku has made the economic impact of subsidy removal a major part of his criticism of the Tinubu administration, while the Presidency and its supporters have defended the reform as necessary to restore the country’s finances. The latest disagreement over the ₦15.8 trillion subsidy savings is therefore expected to remain a major political issue as Nigerians assess whether the additional revenues generated since the subsidy removal have translated into tangible improvements in living standards.