The Minister of the Federal Capital Territory, Nyesom Wike, on Wednesday said President Bola Tinubu had no constitutional power to determine how state and local governments spend additional revenues accruing from the removal of the petrol subsidy.
Wike made the declaration during a media parley in Port Harcourt, Rivers State, while reacting to comments by former Anambra State governor and presidential candidate, Peter Obi, on how funds generated from subsidy removal were being utilised.
The former Rivers State governor said Obi should focus on how the increased allocations were being spent by state and local governments instead of criticising the Federal Government.
According to Wike, the gains from subsidy removal had already been shared with the sub-national governments, giving each tier the responsibility to decide how its allocation should be spent.
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.”
Wike stressed that Tinubu could not dictate how states or local governments should deploy their funds.
“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.”
The FCT minister further argued that increased federal allocations had strengthened the finances of several states.
He said the additional revenue had enabled some state governments to pay salaries and pensions while also executing 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,” Wike said.
The 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 debate should now move beyond the removal of the subsidy to accountability over the increased revenue received by the sub-national governments.
“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.