Subsidy removal raised Imo’s FAAC from N100m to N10.7bn, says Uzodimma

Imo State Governor Hope Uzodimma says the removal of petrol subsidy by President Bola Tinubu dramatically increased the state’s monthly federal allocation, enabling his administration to fund infrastructure and social development projects.

Speaking in Owerri on Friday during a reception for participants of the Presidential Media Tour, Uzodimma said Imo’s financial situation changed significantly after the Federal Government ended the fuel subsidy regime in May 2023.

The governor recalled that shortly after he assumed office in January 2020, the state was left with only about N100 million after paying workers’ salaries.

“When I was sworn in on January 15, 2020, the Accountant-General went for the Federation Account Allocation Committee (FAAC) meeting. He returned and told me that after paying salaries, we had only N100 million left. That was the reality in many states,” he said.

According to him, the situation changed after Tinubu assumed office and abolished fuel subsidy.

“Immediately after May 29, 2023, when FAAC came, I saw over N10.7 billion. I said, ‘What?’ When people were opposing subsidy removal, I came out and said subsidy must be removed.

“So, whatever this man has done to make us have access to funds to help the people must continue. Today, I am very happy that we have been able to deploy these resources to visible programmes and projects that our people are happy with,” he added.

Uzodimma also said the state’s internally generated revenue had risen from less than N400 million monthly in 2020 to nearly N6 billion, while its debt profile had dropped from N287 billion to below N90 billion.

He added that Imo had become more financially stable and had improved infrastructure, including electricity generation and distribution.