Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Minister of the Federal Capital Territory, Nyesom Wike, has made it clear that President Bola Tinubu has no constitutional authority to dictate how state and local governments spend the additional revenue they now receive following the removal of fuel subsidy.
Speaking at a media parley in Port Harcourt on Wednesday, September 2, 2026, Wike was responding to comments made by former Anambra State governor and presidential candidate, Peter Obi, regarding the management of the gains from subsidy removal. Rather than questioning the federal government, Wike argued that Obi should be asking how the additional revenue accruing to the sub-nationals is being utilised.
“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 further stated that the Federal Government has already shared the gains among the three tiers of government, stressing that President Tinubu has no power to impose spending decisions on states or local governments.
“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 declared.
The FCT minister noted that the increased allocations have given states greater financial capacity, pointing out that governments that previously struggled to pay salaries and pensions were now better positioned 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 also praised President Tinubu for taking the bold decision to remove the subsidy, a step he said previous presidents had been unwilling to take. “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 added.
The subsidy debate has resurfaced ahead of the 2027 general elections, with major opposition figures taking opposing positions. Former Vice President Atiku Abubakar has pledged to restore the subsidy if elected, while Peter Obi has maintained his support for its removal, arguing that alleged mismanagement of its proceeds should not justify a return to the old regime.
Tinubu announced the end of the petrol subsidy during his inauguration on May 29, 2023, declaring, “Fuel subsidy is gone.” The policy has since become one of the defining economic decisions of his administration and a major source of political debate.
Wike’s remarks have drawn attention to the constitutional boundaries between the federal and state governments, particularly in the management of shared revenues. As he put it, the increased allocations have strengthened the financial position of many states, and it is now up to them to demonstrate accountability.
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