States Now Enjoy N2trn Monthly Share Due to Tinubu’s Bold Leadership – Wike

President Bola Tinubu’s decision to remove the fuel subsidy continues to draw praise from key government figures, including the Minister of the Federal Capital Territory (FCT), Nyesom Wike, who described the move as a “bold and courageous act” that has reshaped Nigeria’s fiscal landscape.

Speaking on Thursday at the 2025 Innovate Africa Conference in Abuja, Wike said that although the policy was initially unpopular, it has begun to yield visible economic benefits, particularly in the revenue allocations distributed to states.

According to the minister, “You may not be right, but you must take a decision—and that’s what this present government is doing. People forget where we were yesterday. The day Mr. President decided to remove fuel subsidy, I don’t know how many people would have been in a position to take that decision.”

He acknowledged that the policy led to short-term hardship, including sharp increases in fuel prices and general inflation, but insisted that it was a necessary step toward stabilising the economy.

“It was a very difficult decision that made a lot of prices go up,” Wike said. “But by the grace of God, that decision he took—very difficult as it was—today, things are stabilising.”

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The minister further revealed that state governments are now receiving significantly higher allocations from the Federation Account Allocation Committee (FAAC), attributing the increase to Tinubu’s reforms.

“Before now, I never had more than ₦10 or ₦15 billion a month,” Wike stated. “Today, states are sharing not less than ₦2 trillion every month. Why? Because of the removal of the fuel subsidy.”

Wike’s comments highlight the administration’s defense of its economic policies amid growing public debate about the impact of subsidy removal on ordinary Nigerians. While some citizens continue to grapple with rising living costs, federal and state officials argue that the increased fiscal space is enabling more investment in infrastructure, education, and social programmes.

The fuel subsidy removal, announced on May 29, 2023, during Tinubu’s inauguration, ended decades of government spending on petrol price control—a policy widely regarded as unsustainable due to corruption and inefficiency.

Economists and policy analysts remain divided on the long-term implications of the move, but supporters say it has already boosted government revenue transparency and reduced fiscal leakages.

As Wike emphasised, the Tinubu administration’s resolve to sustain the policy is a demonstration of “bold leadership” aimed at strengthening Nigeria’s financial independence and promoting growth across the federation.