Imo State Governor, Hope Uzodimma, views the Federal Government’s removal of fuel subsidies as a significant financial advantage for state governments, highlighting its positive fiscal impact. Speaking during an inspection of government projects, Uzodimma underscores the need to convert the financial benefits of subsidy removal into tangible development outcomes for citizens.
He points out that the increased financial resources from subsidy removal allow states to invest more in social infrastructure and other developmental initiatives. “The additional funds coming to states enable governments to demonstrate their ability to deliver on infrastructure and services,” he says, stressing that the removal of the subsidy is a direct blessing for state governments.
Uzodimma elaborates on how the additional funds are being allocated to key infrastructure projects such as roads, healthcare, and education. These efforts aim to stimulate economic growth and improve the living standards of residents. The governor emphasizes the importance of using the funds effectively to maintain public trust and ensure accountability.
While acknowledging the economic strain caused by rising fuel prices, Uzodimma believes the long-term benefits of subsidy removal will outweigh the immediate challenges. With more resources at their disposal, state governments are better positioned to address pressing developmental needs.
In December 2024, President Bola Tinubu reiterates his administration’s commitment to the fair distribution of resources to states and local governments. He highlights the importance of decentralizing financial resources to empower subnational governments in addressing grassroots-level challenges. “I have allocated more funds to states and local governments,” Tinubu states, reaffirming his dedication to transparency and open governance.
The removal of fuel subsidies has bolstered the financial stability of numerous states. The presidency reports that more than 19 states were saved from insolvency, thanks to increased revenue from the policy. Daniel Bwala, Special Adviser to the President on Policy Communication, notes that the subsidy removal has eased concerns about state bankruptcies and improved fiscal health, allowing states to take advantage of increased federal allocations to address their development needs.
