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Wike Fires Back at Obi: Tinubu Has No Power to Tell States How to Spend Subsidy Gains
Minister of the Federal Capital Territory (FCT), Nyesom Wike, has declared that President Bola Tinubu has no constitutional power to dictate how state and local governments spend the additional revenue accruing to them following the removal of the petrol 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 2027 presidential hopeful, Peter Obi, on the management of the financial gains from subsidy removal.
According to Wike, Obi should focus less on questioning the Federal Government over the policy and instead demand accountability from the states and local governments that have received increased allocations.
“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 stressed that the Federal Government could not determine how funds allocated to other tiers of government should be spent.
“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,” he added.
Wike argued that the increased federal allocations had significantly improved the financial position of many states, allowing them to pay salaries and pensions while undertaking 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.
The former Rivers State governor also commended Tinubu for taking the decision to remove the petrol subsidy, describing it as a bold move 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 declared.
Subsidy Debate Heats Up Ahead of 2027
The controversy over petrol subsidy has resurfaced ahead of the 2027 general elections, with prominent opposition figures taking different positions on the policy.
Former Vice-President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has pledged to restore the subsidy if elected president.
In an August 25 post on X, Atiku said his position had not changed, arguing that Nigerians should not be subjected to hardship despite the country’s natural wealth.
Peter Obi, however, has maintained that removing the subsidy was necessary but criticised what he described as the absence of a clear and organised plan for deploying the resources recovered from the policy.
Speaking at a panel session during the Nigerian Bar Association Annual General Conference in Port Harcourt on August 25, Obi argued that alleged mismanagement of the subsidy savings should not be used as a reason to return to the subsidy regime.
President 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 state governments to ensure that increased allocations translate into tangible development for Nigerians.
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 four to five times their previous allocations from the Federation Account.
He urged state governments to channel the increased revenue into projects that would directly improve citizens’ quality of life.
“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,” the President said.