Minister of the Federal Capital Territory (FCT), Nyesom Wike, has shifted the focus of the fuel subsidy debate from the Federal Government to state and local governments, urging them to account for the additional funds they have received since the policy was scrapped.
Wike said President Bola Tinubu could not dictate how states and local governments should spend their increased allocations because the three tiers of government operate independently.
He made the remarks 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 from subsidy removal.
According to Wike, the more important question should be how states and local governments have utilised the additional revenue accruing to them.
> “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.’”
Wike stressed that the Federal Government could not direct local governments on how to spend their allocations, adding that all tiers of government are constitutionally independent.
The former Rivers State governor also argued that the increase in federal allocations had improved the financial position of many states.
He noted that states that previously struggled to pay workers’ 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.
Wike further commended Tinubu for removing the petrol subsidy, describing the decision as one 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,” he said.
The minister’s comments come amid renewed political debate over the subsidy ahead of the 2027 general elections.
While former Vice President Atiku Abubakar has pledged to restore the subsidy if elected president, Obi has maintained that removing it was necessary, arguing that the proceeds should have been properly managed and invested.
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 called on state governments to ensure that increased allocations translate into meaningful development.
On July 30, Tinubu said states were receiving four to five times more from the Federation Account than they previously received, urging governors to prioritise projects that directly improve the lives of citizens rather than spending heavily on projects with limited impact.
The renewed debate therefore appears to be shifting from whether the subsidy should have been removed to how the additional revenue generated from its removal is being utilised by the different tiers of government.
