Minister of the Federal Capital Territory (FCT), Nyesom Wike, has said President Bola Tinubu has no constitutional power to dictate how state and local governments spend the additional revenue they receive following the removal of fuel subsidy.
Wike made the statement on Wednesday during a media parley in Port Harcourt, Rivers State, while responding to comments by former Anambra State governor and presidential candidate, Peter Obi, on the management of revenue gains from subsidy removal.
According to Wike, Obi should focus on how the additional funds accruing to states and local governments are being utilised rather than questioning the Federal Government over the proceeds of the policy.
“All he should have asked is, ‘Having removed the subsidy, what do you do with the gains?’ This is what I think a reasonable person should talk about,” Wike said.
He said the Federal Government had already distributed the gains from subsidy removal among the sub-national governments, adding that Tinubu could not determine how states or local governments should spend their allocations.
“Now, the government has said the gains have been shared among sub-nationals. Tinubu has no power to say, ‘State, this is what you should do with the funds that you’ve brought in from the fuel subsidy.’”
“He has no power to tell local governments what to do with their money. All tiers of government are independent,” he added.
Wike said the increased allocations had provided states with greater financial capacity, noting that some governments that previously struggled to pay salaries and pensions were now in a stronger position to execute projects.
“Today states are saying, unlike before, we can’t pay salaries or pensions, and there are strikes all over the place. Now there are no strikes; there are advantages. Now, I have money to carry out projects,” he said.
The former Rivers State governor also praised Tinubu for removing the fuel subsidy, describing the decision as a bold step that previous presidents had been unwilling to take.
“Tinubu deserves kudos for taking the bold decision no president took. Now, it’s time for states to account for the funds they have gotten,” Wike said.
Fuel subsidy debate returns ahead of 2027
The debate over fuel subsidy has resurfaced ahead of the 2027 general elections, with major opposition figures taking different positions on whether the policy should remain in place.
Former Vice President and presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar, said in an August 25 post on X that he remained committed to restoring the subsidy if elected president.
“On the question of subsidy, my position has not changed and will not change: I will restore it! A nation as blessed as ours has no business abandoning its citizens to hardship. Nigeria is rich enough to look after her own,” Atiku wrote.
He argued that Nigeria’s progress and wealth should be judged by citizens’ ability to afford goods and services rather than by the amount of revenue collected by government.
Obi, however, has maintained his support for the removal of the subsidy, arguing that alleged mismanagement of the proceeds should not be used as a reason to return to the subsidy regime.
Speaking during a panel session at the Nigerian Bar Association Annual General Conference in Port Harcourt on August 25, Obi said the removal of the subsidy was necessary but should have been accompanied by a clear and organised plan for deploying the resources recovered from the policy.
Tinubu announced the removal of the petrol subsidy during his inauguration as President on May 29, 2023, declaring, “Fuel subsidy is gone.”
The President has also repeatedly urged state governments to ensure that the increased allocations resulting from the policy translate into tangible development.
On July 30, while receiving a delegation of traditional rulers from Oyo State led by the Olubadan of Ibadanland, Oba Rashidi Ladoja, Tinubu said states were now receiving four to five times what they previously received from the Federation Account.
“The cost of operation is high. But the money that I’m pushing to the states, if you had it during your own time, or during my time, it would have been different,” Tinubu said.
“They are taking four to five times their money. Nobody is borrowing money to pay salaries now. Pensioners are receiving their pay.”
He urged state governments to do more with the increased revenue, particularly by investing in roads and infrastructure that would improve citizens’ quality of life and enhance security operations.
“They should do more instead of building flyovers where there is no numeric traffic; build roads and artery networks to really enhance the quality of life and the accessibility of the security agencies to penetrate those areas.”
Source: Wike’s media parley
