The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has stated that President Bola Ahmed Tinubu lacks the constitutional authority to dictate or control how state governments utilise the increased revenues accruing to them from the removal of fuel subsidy.
Wike made the clarification while addressing the significant fiscal gains recorded by states since the Federal Government’s bold decision to end the fuel subsidy regime.
He noted that the policy has substantially boosted Federation Account Allocation Committee (FAAC) disbursements, enabling many states to prepare annual budgets exceeding ₦1 trillion—levels of funding he said were unimaginable during his eight years as Governor of Rivers State, when annual federal allocations never exceeded ₦200 billion.
According to the Minister, the additional funds now available to states and local governments are constitutionally theirs to manage in line with their development priorities and the needs of their citizens. “The President has no power to dictate how states spend the subsidy gains,” Wike emphasised.
“These are resources belonging to the federating units. What the Federal Government has done is to take the difficult but necessary decision that has unlocked more money for everyone. How that money is applied is the responsibility of the governors and the people of the states,” he concluded.
Wike urged residents across the country to demand accountability from their state governors, stressing that the higher revenues should translate into improved infrastructure, better public services, prompt payment of salaries and pensions, and an overall enhancement in the quality of life.
He observed that while the Federal Government continues to deliver on its own share of responsibilities, states must equally rise to the occasion with the resources now at their disposal.
The Minister reiterated that the removal of fuel subsidy was a courageous leadership decision that has stabilised public finances at all levels of government, eliminated the need for constant bailouts, and ended the era of zero allocations that previously plagued many states and local governments.