The Minister of the Federal Capital Territory, Nyesom Wike, has said President Bola Tinubu lacks the constitutional authority to determine how states and local governments spend additional revenue accruing from the removal of petrol subsidy.
Wike made the remarks 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, concerning the management of subsidy-removal gains.
The FCT minister argued that the more important question should be how the additional revenue being received by the sub-national governments is being utilised.
According to him, the Federal Government has already distributed the increased revenue among the different tiers of government, leaving states and local governments with the responsibility of determining how their allocations 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 that the President could not legally instruct individual states or local governments on how to deploy their funds.
“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.
Wike maintained that the increased allocations had improved the financial position of many states.
He said governments that previously struggled to meet salary and pension obligations were now receiving enough revenue to execute projects and meet their responsibilities.
“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 defended Tinubu’s decision to end the petrol subsidy, describing it as a difficult but necessary step that previous administrations had avoided.
“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.
The debate over the petrol subsidy has intensified ahead of the 2027 general elections, with opposition politicians adopting different positions on the policy.
Former Vice President and African Democratic Congress presidential candidate, Atiku Abubakar, has maintained that he would restore the subsidy if elected president.
In a post on X on August 25, Atiku argued that Nigeria’s wealth should be reflected in citizens’ ability to afford essential goods and services.
“On the question of subsidy, my position has not changed and will not change: I will restore it!” Atiku wrote.
Peter Obi, however, has continued to support the removal of the subsidy while questioning how the resulting revenue has been managed.
Speaking at a panel session during the Nigerian Bar Association Annual General Conference in Port Harcourt on August 25, Obi said ending the subsidy was necessary but should have been accompanied by a clear plan for deploying the funds recovered.
President Tinubu announced the removal of the petrol subsidy during his inauguration on May 29, 2023, declaring, “Fuel subsidy is gone.”
Since then, the President has repeatedly urged state governments to ensure that increased allocations translate into meaningful development.
On July 30, while receiving traditional rulers from Oyo State led by the Olubadan of Ibadanland, Oba Rashidi Ladoja, Tinubu said states were now receiving significantly more from the Federation Account.
He said the increased revenue should be used to improve infrastructure and the quality of life of residents.
“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 urged state governments to prioritise roads and other infrastructure that would improve accessibility, security and economic activity rather than projects he considered unnecessary.
The renewed subsidy debate is expected to remain a major issue as political parties and presidential contenders prepare for the 2027 elections.
