The Federal Government has announced a N5 billion palliative for each state of the federation and the Federal Capital Territory (FCT), Abuja, to cushion the effect of the removal of petrol subsidy on Nigerians.
Borno State Governor, Babagana Zulum, made the announcement while speaking with State House correspondents at the end of the National Economic Council (NEC) meeting presided over by Vice President Kashim Shettima at the Presidential Villa in Abuja on Thursday, August 17, 2023.
NEC is made up of state governors, the Governor of the Central Bank of Nigeria (CBN), and other senior government officials.
Zulum said the fund was for the purchase of 100,000 bags of rice, 40,000 bags of maize as well as fertilisers.
The governor stated that the fund was on basis of 52 per cent grants and 48 per cent as loans to be repaid to CBN within 20 months by the states and local councils.
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He said the council commenced President Bola Tinubu and the CBN for the various efforts aimed at reducing the impact of the removal of the subsidy on the citizens.
Governor Zulum added that the federal government had sent food items to states bordering Niger Republic to mitigate the influx of refugees coming into the states.
The states, he said, were also given five trucks of rice each by the federal government last week for distribution to vulnerable Nigerians in their domain.
Zulum added: “Furthermore, council has 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 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.”
The states, he said, have also been directed to negotiate with the labour unions leadership on the palliatives, adding that a committee of governors had been set up for this purpose.
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