FCT Minister Nyesom Wike has said President Bola Tinubu lacks the authority to determine how states and local governments spend the additional revenue generated after the removal of 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 concerning the management of subsidy gains.
According to the minister, attention should now shift from the Federal Government to how the additional funds received by sub-national governments are being utilised.
Wike argued that the three tiers of government operate independently and that the Federal Government cannot dictate how states or local councils use their allocations.
He said the more important question was whether governments were using the increased revenue to improve the lives of citizens.
The former Rivers governor noted that the higher allocations had strengthened the financial position of many states.
He said governments that previously struggled to pay workers’ salaries and pensions were now in a better position to meet their obligations and undertake development projects.
Wike also commended Tinubu for removing the petrol subsidy, describing the decision as courageous because previous administrations had been unwilling to take the step.
He, however, said the responsibility had now shifted to state governments to demonstrate how the additional resources were being used.
The controversy over fuel subsidy has intensified ahead of the 2027 general elections, with major opposition figures holding different positions on its removal.
Former Vice President and African Democratic Congress presidential candidate Atiku Abubakar has maintained that he would restore the subsidy if elected president.
In an August 25 post on X, Atiku said Nigeria had sufficient resources to protect citizens from hardship and argued that national prosperity should be measured by people’s ability to afford goods and services.
Peter Obi, meanwhile, has continued to support the removal of the subsidy.
Speaking at a panel session during the Nigerian Bar Association Annual General Conference in Port Harcourt on August 25, Obi said removing the subsidy was necessary but argued that the government needed a clear plan for deploying the resources recovered from the policy.
Tinubu announced the removal of the petrol subsidy during his inauguration on May 29, 2023, declaring, “Fuel subsidy is gone.”
The President has since repeatedly urged states to ensure increased allocations produce visible development.
On July 30, while receiving traditional rulers from Oyo State, Tinubu said states were receiving between four and five times their previous Federation Account allocations.
He urged state governments to prioritise roads, infrastructure and projects that directly improve citizens’ quality of life rather than spending heavily on projects with limited public benefit.
The renewed disagreement over the subsidy therefore continues to centre on two questions: whether the policy should remain abolished and how governments should account for the additional revenue it has generated.
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