Minister of the Federal Capital Territory (FCT), Nyesom Wike, has said President Bola Tinubu cannot determine how state and local governments spend the additional revenue they receive following the removal of fuel subsidy.
Wike made the remark on Wednesday during a media parley in Port Harcourt, Rivers State, while responding to comments by former Anambra State governor and presidential candidate, Peter Obi, concerning the utilisation of funds generated from the subsidy removal.
The former Rivers State governor argued that rather than criticising the Federal Government, Obi should focus on how the increased allocations are being spent by the state and local governments.
According to Wike, the Federal Government had already distributed the gains from subsidy removal to the sub-national governments, leaving each tier of government with the responsibility of determining how its funds should be used.
He said, “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.’
“He has no power to tell local governments what to do with their money. All tiers of government are independent.”
Wike further maintained that the increase in federal allocations had strengthened the finances of many states, enabling them to meet obligations such as salaries and pensions while also implementing development projects.
ALSO READ: Fuel subsidy: Don’t fall for Atiku’s bait, Yuguda warns Nigerians
He said the removal of the subsidy had eased the financial pressures previously experienced by several state governments.
“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 FCT minister also defended Tinubu’s decision to remove the petrol subsidy, describing it as a difficult but courageous policy choice that previous administrations had avoided.
Wike said the focus should now shift to ensuring that states account for the increased revenue they have received.
“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.