Wike: Tinubu Cannot Dictate How States Spend Increased Subsidy Revenue

FCT Minister Nyesom Wike has said President Bola Tinubu has no constitutional power to determine how state and local governments spend the additional revenue accruing to them following the removal of petrol subsidy.

Wike made the remarks on Wednesday during a media chat in Port Harcourt, Rivers State, while reacting to comments by former Anambra State governor and presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, on the management of funds generated from the subsidy removal.

The minister argued that the focus should not be on questioning the Federal Government over the policy, but on how states and local governments are utilising the increased allocations they now receive.

According to Wike, once the additional revenue is shared among the different tiers of government, the Federal Government cannot dictate how the funds should be spent.

He said all tiers of government are constitutionally independent and that states and local governments have the authority to determine their spending priorities.

Wike also pointed to what he described as improved financial capacity among states since the removal of the subsidy, noting that some governments that previously struggled to pay salaries and pensions are now able to meet their obligations and undertake development projects.

He commended President Tinubu for removing the petrol subsidy, describing the decision as a bold step that previous administrations had been unwilling to take.

Wike therefore called on state governments to be accountable for the additional funds they have received, stressing that the focus should now be on how the increased revenue is translated into tangible development for citizens.

The subsidy debate has intensified ahead of the 2027 general elections, with opposition figures adopting different positions on the policy.

Former Vice President and African Democratic Congress (ADC) presidential candidate Atiku Abubakar has maintained that he would restore the subsidy if elected, arguing that government revenue should not take precedence over citizens’ ability to afford basic goods and services.

Obi, on the other hand, has continued to support the removal of the subsidy but has criticised what he considers inadequate planning and poor management of the resources saved from the policy.
President Tinubu announced the removal of the petrol subsidy during his inauguration on May 29, 2023, declaring that “fuel subsidy is gone.”

The President has subsequently urged state governments to ensure that the increased allocations they receive are used to improve infrastructure and the welfare of citizens.

On July 30, while receiving traditional rulers from Oyo State, Tinubu said states were now receiving four to five times their previous allocations from the Federation Account. He urged governors to invest the additional resources in projects that would directly improve living conditions rather than embarking on projects with limited impact.

For Wike, however, the responsibility for deciding how the additional funds are spent rests with the respective tiers of government, while the key issue is ensuring accountability for the resources received.