The Minister of the Federal Capital Territory, Nyesom Wike, has said President Bola Tinubu does not have the authority to determine how state and local governments spend the additional revenue they receive following the removal of the fuel subsidy.
Wike made the statement 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 funds generated from subsidy removal.
According to Wike, Obi should focus on how the additional revenue accruing to states and local governments is being utilised rather than directing his criticism at the Federal Government.
He said, “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.
“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 increase in allocations had strengthened the financial position of states, noting that governments that previously struggled to pay salaries and pensions now had more resources 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 commended Tinubu for removing the subsidy, describing the decision as a bold move that previous presidents had been unwilling to make.
“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.
Subsidy debate intensifies ahead of 2027
The debate over fuel subsidy removal has resurfaced ahead of the 2027 general elections, with major opposition figures expressing different views on the policy.
Former Vice President and presidential candidate of the African Democratic Congress, Atiku Abubakar, said in an August 25 post on X that he remained committed to restoring the subsidy if elected.
“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 the progress and wealth of a country should be judged by how well its citizens can afford goods and services, rather than by the amount of revenue generated by the government.
Obi, however, has continued to support the removal of the subsidy, arguing that alleged mismanagement of the proceeds should not be used as a reason to return to the subsidy system.
Speaking during a panel session at the Nigerian Bar Association Annual General Conference in Port Harcourt on August 25, Obi said the removal 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, when he declared, “Fuel subsidy is gone.”
The President has also repeatedly called on state governments to ensure that increased allocations result in 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.
“They are taking four to five times their money. Nobody is borrowing money to pay salaries now. Pensioners are receiving their pay.
“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.”