Governors Once Kneeled For Loans: Wike Defends Subsidy Removal From Revenue Position

ABUJA, NIGERIA – Federal Capital Territory Minister Nyesom Wike has revealed the extreme financial desperation state governors endured before the removal of the petroleum subsidy, disclosing that he personally had to plead with banking executives to secure loans to keep Rivers State functional during his tenure as governor.

Speaking during a media broadcast, Wike defended the ongoing economic reforms, arguing that the elimination of the subsidy has fundamentally transformed state finances from a condition of systemic borrowing to unprecedented liquidity.

Begging Bank Managers for Survival

Wike painted a vivid picture of the severe fiscal distress that plagued sub-national governments under the old subsidy regime, describing how commercial banks routinely avoided state executives seeking financial rescue.

“When we were in government, we do go to banks, kneel down for them to beg for some money,” Wike stated. “Sometimes when we enter through the front door, the manager will follow through the back door and run away. A whole governor will be waiting in the office of the bank manager.”

He contrasted those past humiliations with the current financial landscape, asserting that the controversial policy decision has successfully unlocked vast revenues for the tiers of government. According to him, because of the removal of the oil subsidy, states are receiving significantly more funds from the federation account, effectively halting the desperate cycle of bank borrowing.

Courage in Painful Leadership

The FCT Minister acknowledged that the cancellation of the petroleum subsidy was an incredibly painful policy shift that has induced severe economic hardship on ordinary citizens across the nation. However, he maintained that the mark of true leadership is the administrative courage to implement difficult choices that yield short-term pain in exchange for long-term structural gains.

Wike asserted that the fiscal results of the policy are undeniable. He pointed out that states which previously begged financial institutions for survival money have experienced a total reversal of fortunes, placing them in a position where commercial banks are now the ones actively soliciting their patronage and deposits.

The remarks come amid continued national debate over the escalating cost of living triggered by the subsidy removal, with critics arguing that the massive revenue windfalls recorded by state governors have yet to translate into meaningful economic relief or impactful developmental projects for the grassroots population.

Related