The Federal Government has allocated N5 billion to each state including the FCT, as palliatives to cushion the effects of the removal of petrol subsidy.
Babagana Zulum, the Governor of Borno state, disclosed this during a National Economic Council (NEC) meeting in Abuja on Thursday.
The meeting, chaired by Vice President Kashim Shettima, is made up of Governors from all 36 states, the Governor of the Central Bank of Nigeria (CBN), and other appointed government representatives.
Government Palliatives
In the wake of the removal of fuel subsidy and the hike in transportation costs for individuals, several state governments as well as the Federal Government have been rolling out palliatives measures to cushion the effect of the hike in the cost of transportation.
During his July 31st, 2023, nationwide broadcast, President Bola Tinubu said his government is monitoring the effects of exchange rates and inflation on the prices of Premium Motor Spirit (PMS) otherwise known as petrol, and will intervene when necessary.
President Tinubu in his speech said:
- “We are also monitoring the effects of exchange rates and inflation on gasoline prices. If and when necessary, we will intervene.
- ” I assure you, my fellow countrymen and women, that we are exiting the darkness to enter a new and glorious dawn. Now, I must get back to work to make this vision come true.’’
The National Assembly had also approved the President’s N500 billion request for palliatives.
Commenting on the outcome of the NEC meeting, Zulum said the N5 billion is to enable state governments procure 100,000 bags of rice, 40,000 trucks of maize and fertilizers to cushion the effect of food shortage across the country.
- “This funding has to be shared with a formula as follows: 52 percent of this money is given to states as grants, while 48 percent of the N5billon is to be paid back on an instalment basis within a period of 20 months to the CBN by the states and the local government areas in Nigeria,” he said.
- “The council has taken bold decisions in order to ensure the speedy release of grains and other items to cushion the effects of subsidy removal on the less privileged in society.
- “The council has also taken note of the $800 million loan and insists that it be strictly used for the intended purpose and based on an accurate and acceptable register. The $800 million announced by the president will go to Nigerians in accordance with an accurate social register.
- “Furthermore, the council has also noted the package that was announced by the president in order to cushion the effect of subsidy removal, amounting to about N500 billion.
- “This fund has to be distributed to the following sectors MSMEs: industrial sector, about N125 billion, will go to cash transfers, agricultural sector as well as gas expansion for buses.
- “And because of the increasing cost of fossil fuel, the federal government intends to establish more gas stations in Nigeria and procure more gas-powered buses, CNG buses, as well as electric buses.”
