Tinubu’s reforms ended $7.5bn yearly subsidy borrowing, lifted FAAC by 60% – Presidency

The presidency has said President Bola Tinubu’s economic reforms have freed Nigeria from borrowing about $7.5 billion annually to finance fuel subsidies, leading to a nearly 60 percent increase in monthly Federation Account Allocation Committee (FAAC) allocations to states and accelerating infrastructure development nationwide.

Sunday Dare, Special Adviser to the President on Media and Public Communications, made the remarks during the Renewed Hope Ambassadors National Media Tour of projects in Imo State.

According to him, the increased allocations have enabled states to embark on major infrastructure projects while improving their financial position.

“We were borrowing to pay for that subsidy. Now we’re no longer borrowing $7.5 billion every year. Those funds are being freed up.

“That’s why we see the FAAC allocation going up by almost 60%,” Dare said.

He added that the reforms had also reduced states’ dependence on the federal government for salary payments.

“People forget that 21 states were coming, cap in hand, to Abuja for salaries every month. States are paying now.

“They’ve also increased N70,000 and N80,000. Some states like Imo State, N100,000,” he added.

Dare said the projects inspected in Imo reflected the impact of collaboration between the federal government and states under the Renewed Hope Agenda.

“This wouldn’t have been possible without the increased FAAC allocation that comes monthly from the federal government to the state government, providing extra funds for development projects,” he said.

The presidential aide said the delegation inspected several ongoing and completed projects, including a 2,000-bed infectious disease centre, a heart transplant centre, the Imo Digital City, and the Orlu-Akokwa-Uga road linking Imo and Anambra states.

He described the investments as people-centred projects capable of boosting healthcare, innovation and regional economic integration.

Providing further details, Declan Emelumba, Imo State Commissioner for Information, Public Orientation and Strategy, said Governor Hope Uzodimma revived the Imo State University Teaching Hospital after years of decline, restoring accreditation that had left about six sets of medical students unable to graduate.

He said the restoration allowed the backlog of stranded medical students to graduate and enabled the institution to resume regular graduation of doctors.

Emelumba also described the Orlu-Akokwa-Uga road as a strategic commercial corridor connecting Imo and Anambra, noting that a section of the road had remained impassable for more than eight years because of severe gully erosion before reconstruction began.

According to him, the project would improve movement of goods and services across the two states and restore access to communities previously cut off by erosion.

Victor Samson, executive assistant to the chief medical director of the Imo State University Teaching Hospital, said the state government had invested heavily in healthcare infrastructure, including a heart transplant centre, a 200-bed infectious disease centre, solar-powered facilities and a modern oxygen plant.

He disclosed that the state had conducted more than 4,000 free surgeries since Uzodimma assumed office, including about 400 thyroidectomy procedures during the last free medical outreach.

Samson added that patient inflow had increased significantly as consultants and resident doctors who previously left the hospital had begun returning to the institution.

Chimezie Amadi, Imo State Commissioner for Digital Economy and E-Government, said the state’s Digital City had trained over 75,000 youths in digital skills ranging from software engineering to artificial intelligence, cybersecurity and cloud computing.

He said the facility also assembles smartphones, routers and tablets under the ImoSys brand with a production capacity of 1,000 devices daily, adding that “the project had attracted $15 million in private investment through partnerships with organisations including the University of California, Berkeley, and Cisco.”

According to Amadi, the initiative is designed to create a technology-driven economy while positioning Imo as a digital innovation hub in Africa.

The media tour also inspected the Emmanuel Iwuanyanwu International Convention Centre, where Bennett Nwokejiobi, Chairman and Chief Executive Officer of Benicox Group, said “The facility would feature a 10,000-seat main hall, two 5,000-seat halls and an additional 2,000-seat upper hall, making it one of the country’s largest convention centres when completed.”