The 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 the petrol subsidy.
Wike made the statement on Wednesday at 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 revenue generated from the subsidy removal.
The former Rivers State governor argued that rather than questioning the Federal Government over the use of the funds, Obi should demand accountability from the state and local governments that receive increased allocations.
According to Wike, the revenue gains from subsidy removal have already been shared among the different tiers of government, leaving states and local governments with the responsibility of determining how their funds are spent.
“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 added, “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.”
Wike said the increased revenue available to states had improved their financial capacity, particularly in meeting obligations such as the payment of salaries and pensions.
He noted that states that previously struggled to meet their financial commitments were now in a better position to execute development 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.
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The FCT minister also defended Tinubu’s decision to remove the subsidy, describing it as a bold policy move that previous administrations had been unwilling to implement.
“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.
His comments come amid a renewed national debate over the economic impact of subsidy removal and how the additional revenue accruing to governments should be utilised.
While some opposition figures, including former Vice President Atiku Abubakar, have promised to restore the subsidy if elected in 2027, Obi has maintained that its removal was necessary but that the proceeds should be transparently and efficiently deployed.
Tinubu announced the end of the petrol subsidy on May 29, 2023, shortly after assuming office. Since then, the Federal Government has repeatedly urged state governments to ensure that increased allocations are translated into projects and policies that improve living conditions.
On July 30, the President said states were receiving four to five times their previous Federation Account allocations and urged them to invest the resources in roads and other infrastructure that would improve accessibility and security.
The subsidy debate is expected to remain a major issue ahead of the 2027 general elections, as political parties and presidential candidates present competing proposals on how Nigeria should manage its revenues and ease the economic burden on citizens.