Femi Falana Demands Accountability Over Subsidy Savings and Petroleum Sector Operations
Appearing on Channels Television's Sunday Politics, human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana, questioned the tangible impact of fuel subsidy removal on ordinary citizens.
Falana argued that while all three tiers of government are receiving increased allocations on paper, macro-economic adjustments like currency devaluation have swallowed up expected savings, leaving the average Nigerian facing heightened economic hardship.
Falana challenged the Federal Government and the Nigerian National Petroleum Company Limited (NNPCL) over the ongoing importation of refined petroleum products despite domestic refining capacity.
He urged the government to account for the 450,000 barrels of crude oil set aside per day for local consumption and break away from economic prescriptions dictated by Bretton Woods institutions.
"Where are the benefits of the economic program of the government? We have been told to wait, and wait, and wait. People are dying."
Deep-Dive Analysis
Key Issues Raised in the Interview
Femi Falana detailed structural issues affecting public procurement, petroleum sector governance, and fiscal accountability across all levels of government:
- Erosion of Subsidy Savings via Devaluation: Falana asserted that the annual $10 billion previously attributed to fuel import costs has failed to yield direct public benefits. Instead, currency devaluation and debt servicing obligations have absorbed the financial gains.
- Domestic Crude Allocation & Local Refining: He raised questions regarding the statutory 450,000 barrels per day crude oil allocation meant for domestic consumption. Falana argued that allocating this volume directly to local refiners—including the Dangote Refinery—would enable the government to moderate domestic fuel prices without relying on import-driven benchmarks.
- Ongoing Reliance on Fuel Importation: Expressing concern that imported fuel still accounts for roughly 40–43% of local consumption despite active domestic refineries, Falana called for an immediate audit into why refiners are exporting products while Nigeria continues importing.
- Subnational Accountability & Local Government Autonomy: Citing an example in Ekiti State where a local government received over ₦5.4 billion between January and May 2026 yet failed to repair critical community roads, Falana emphasized that citizens must hold local and state executives accountable alongside the federal government.
- Influence of Foreign Financial Institutions: He criticized reliance on International Monetary Fund (IMF) and World Bank policy frameworks, arguing that floatation and devaluation strategies harm import-dependent economies and exacerbate poverty.
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