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The Minister of the Federal Capital Territory (FCT), Nyesom Wike, stated that President Bola Tinubu's decision to eliminate the fuel subsidy has increased the financial resources available to state governments.
During his End-of-Year Media Chat in Port Harcourt on Monday, Wike characterized the removal of the subsidy as a courageous decision that has enabled numerous states to draft annual budgets exceeding N1 trillion.
He noted that some Nigerians, aware of the increased financial allocations to states, are seeking to take advantage of this additional revenue in various ways.
Wike emphasized that as more funds flow to the states, the living conditions of citizens should improve. He urged the public to hold their governors accountable for how the funds are utilized.
“In my eight years as the governor of Rivers State, I never received more than N200 billion in a year from the Federation Account. However, today, states are planning budgets over N1 trillion due to the removal of the fuel subsidy, which has boosted their income,” he remarked.
The minister pointed out that if he had N500 billion allocated for the FCT, he could achieve remarkable outcomes. He highlighted that the FCT currently receives only one percent of the Federal Government’s share from the Federation Account.
“For example, if the Federal Government receives N1 trillion, one percent amounts to N10 billion, which is insufficient for paying salaries. This is why we rely heavily on Internally Generated Revenue. Nevertheless, you can see the progress being made in Abuja,” he clarified.
Wike mentioned that despite the limited funding, the FCT Administration has made significant efforts to serve its residents. However, he noted that financial resources alone cannot resolve every issue, as goodwill can sometimes accomplish what money cannot.
He expressed confidence that the candidates of the All Progressives Congress (APC) would emerge victorious in the FCT Area Councils elections scheduled for February, attributing this to President Tinubu’s goodwill.
According to him, no previous president has contributed as much to the FCT Area Councils as Tinubu has, providing APC candidates with a distinct advantage.
Wike stated that beyond infrastructure development, the FCT Administration has invested in education, healthcare, and agriculture, which he believes will enhance the standard of living for residents over time.
Frequently Asked Questions
What impact has the removal of the fuel subsidy had on state budgets?
The removal of the fuel subsidy has allowed many states to prepare annual budgets exceeding N1 trillion, significantly increasing their financial resources.
How can citizens hold their governors accountable for state funds?
Citizens can hold their governors accountable by actively engaging in governance, asking questions about financial allocations, and demanding transparency in the use of state funds.
What is the current funding situation for the Federal Capital Territory?
The FCT currently receives only one percent of the Federal Government’s share from the Federation Account, which is insufficient for covering basic expenses like salaries.
What sectors is the FCT Administration investing in?
The FCT Administration is investing in infrastructure, education, healthcare, and agriculture to improve the standard of living for residents.
Eze Chidiebere Paul
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