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The Federal Government has approved a whopping N185 billion support to be given to each of the 36 states of the federation and the Federal Capital Territory (FCT) for the procurement of grains, fertilizers and supply of five trucks of rice to each state as palliatives to cushion the effect of petroleum subsidy removal.
The states are to purchase 100,000 bags of rice and beans, 40,000 bags of maize among other items to be distributed to the less privileged in the society.
Speaking with State House correspondents after the National Economic Council (NEC) meeting presided over by Vice President Kashim Shettima on Thursday at the Council Chambers of the Presidential Villa, Abuja, Borno State Governor, Prof Babagana Zulum of Borno said each state and the FCT will receive N5 billion each.
The governor who spoke alongside his counterparts Uba Sani of Kaduna; Seyi Makinde of Oyo State; Yahaya Bello of Kogis State; and Prof Charles Soludo of Anambra, disclosed that five trucks of rice and grains were distributed as part of measures to alleviate the hardship due to the high cost of living as government continued to work with more enduring programmes.
Zulum said that Nigeria was already having refugees from Niger Republic which he said is affecting the distribution of palliatives.
This was even as the states bordering Niger Republic appealed to the Federal Government to assist the in catering for the refugees from the disrupted political francophone country, as the government directed the National Emergency Management Agency (NEMA) to distribute food items to states sharing border with Niger Republic over the recent political instability in the country.
On his side, the Governor of Anambra state, Prof. Charles Soludo said that the review of social register was in progress, hence the delay in the distribution of palliative to the poor.
However, the governor of Kaduna State, Senator Uba Sani said only N2 billion has so far been given to states instead of the N5 billion approved.
“NEC met and expressed serious concerns as regards increasing cost of food items, increasing cost of transportation amongst others as a result of subsidy removal. In order to cushion the effect of subsidy removal, the federal government has released five trucks of rice to each state last week.
“Furthermore, in order to cushion the effect of food shortages across the country, the federal government has approved the sum of N5billion to be given to each state for the procurement of 100,000 bags of rice, 40,000 bags of maize and fertilizers. This funding has to be shared with a formula as follows: 52% of this money is given to states as grants, while 48% of the N5billon is to be paid back on an instalment basis within a period of 20months to the CBN by the states and the local governments areas in Nigeria.
“The Council commended the efforts of the federal government under the leadership of President Tinubu as well as the CBN. We have also commended the efforts of NEMA in cushioning the effects of the subsidy removal.
“Council has taken bold decisions in order to ensure speedy release of grains and other items in order to cushion the effects of subsidy removal on the less privileged in the society.
“Council has also taken note of the $800 million loan and insist that it be strictly used for intended purpose and based on accurate and acceptable register. The $800million announced by the president will go to Nigerians in accordance with an accurate social register.
“Furthermore, Council has also noted the package that was announced by the president in order to cushion the effect of subsidy removal, amounting to about N500billion. This fund has to be distributed to the following sectors MSMEs, industrial sector, about N125billion will go to cash transfers, agricultural sector as well as gas expansion for buses. Because of the increasing cost of fossil fuel, the federal government intends to establish more gas stations in Nigeria, procure more gas powered buses, CNG buses, as well as electric buses in order to cushion the effect of the subsidy removal.
“Furthermore, NEMA will also liaise with states in order to distribute foodstuffs to the people immediately, especially those affected in the frontline states that are bordering Niger Republic because of influx of refugees. The Council has also tasked the states to dialogue with the labour unions leadership. A committee made up of Anambra State governor, NGF Chairman and others have been nominated to interface with labour. The most important thing that the Council has taken note of is that all these palliatives that are being mentioned now are temporary solutions.
“Council has decided to invest in medium and longer term sustainable solutions that will ensure availability of food and non food solutions in Nigeria, especially investing in commercial agriculture and also investing in irrigated agriculture. NEC is calling on Nigerians and labour to be calm, law abiding s the president is determined to address the issues at hand,” the governor explained. (Nigerian Pilot)
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