The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has said President Bola Tinubu lacks the constitutional authority to dictate how state and local governments spend additional revenues accruing to them following the removal of the petrol subsidy.
Wike made the clarification on Wednesday during a media parley in Port Harcourt, Rivers State, while reacting to comments by former Anambra State governor and presidential candidate, Peter Obi, on the management of the gains from subsidy removal.
The FCT minister argued that instead of directing his criticism at the Federal Government, Obi should be asking how the additional revenue received by state and local governments is being utilised.
“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 noted that the Federal Government had shared the gains from subsidy removal among the different tiers of government, stressing that the President could not determine how the funds allocated to states and local governments should be spent.
“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 said.
According to Wike, the increased allocations have provided states with greater financial capacity, particularly after years of struggling to meet salary and pension obligations.
“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.
Wike also commended Tinubu for removing the petrol 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,” he said.
The debate over the fuel subsidy has intensified ahead of the 2027 general elections, with opposition politicians adopting different positions on whether the policy should be reversed.
Former Vice President and presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar, recently declared that he would restore the subsidy if elected president.
In a post on X on August 25, Atiku said his position on the matter had not changed, arguing that Nigerians should not be subjected to hardship in a country with abundant resources.
“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 national prosperity should be measured by the ability of citizens to afford basic goods and services rather than by the amount of revenue generated by government.
READ ALSO: Tinubu Has No Power To Dictate How States Spend Subsidy Gains — Wike
Obi, however, has maintained that the removal of the subsidy was necessary, while criticising the alleged mismanagement of the resources recovered from the policy.
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 should have been accompanied by a clear and organised plan for deploying the resources saved.
Tinubu announced the removal of the petrol subsidy during his inauguration on May 29, 2023, when he declared that “Fuel subsidy is gone.”
The President has subsequently urged state governments to ensure that increased allocations translate into tangible development for citizens.
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 receiving significantly higher allocations 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,” the President said.
He claimed that states were now receiving four to five times what they previously received and urged governments to use the additional funds to improve infrastructure and living conditions.
“They are taking four to five times their money. Nobody is borrowing money to pay salaries now. Pensioners are receiving their pay,” Tinubu said.
The President also advised state governments to prioritise roads and infrastructure that directly improve the quality of life and support 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,” he added.
The renewed debate has therefore shifted beyond the decision to remove the subsidy to questions over how the additional revenue available to governments at all levels is being utilised and whether Nigerians are receiving tangible benefits from the increased allocations.