Fuel Subsidy: FG Announces 5bn Palliative per State to Cushion the Effect of Fuel Subsidy

The Federal Government has announced the provision of N5 billion palliative to 36 states of the federation, including the Federal Capital Territory (FCT) to provide temporary relief for the hardship faced by the removal of fuel subsidy.

After the National Economic Council (NEC), Governor Babagana Zulum of Borno State announced an interactive session with State House correspondents in Abuja on Thursday.

Vice President Kashim Shettima was the Chairman of the just concluded 135th NEC meeting that was held on Thursday.

Zulum said that the meeting centered on the hike in the prices of food items and also the increased cost of transportation which came as a result of the removal of fuel subsidy.

The committee comprises the Nigerian Governors Forum Chairman, AbdulRahman AbdulRazaq; Governor of Anambra State, Chukwuma Soludo; Chairman of Progressives Governors Forum, Hope Uzodinma of Imo State; PDP Governors Forum Chairman, Bala Mohammed of Bauchi State, and Abia State Governor, Alex Otti.

Vice President Kashim Shettima said that the committee responsible for the distribution of palliatives will work closely with the leadership of labour unions in the country to find ways to help in the interest of the nation.

The council also received a report on the ongoing distribution of grains, rice, fertilizer, and other relief items to States and the N5 billion funds for palliatives provided by the Federal Government. The NEC meeting representatives also commended the Central Bank of Nigeria (CBN) and the National Emergency Management Agency (NEMA) for their interventions.

NEC also outlined various interventions by States governments and motivated them to boost the distribution of palliatives and relief materials to alleviate the suffering of citizens especially those in dire need of those items.

NEC also held a minute silence in honour of some military personnel who died in Nigeria State while commiserating with their families.

“To cushion the effect of subsidy removal, the federal government released five trucks of rice to each State last week.

“Furthermore, to cushion the effect of food shortages across the country, the federal government approved the sum of N5 billion to be given to each State to procure 100,000 bags of rice, 40,000 bags of maize and fertilisers,” Zulum said.

Speaking on How the Palliative Will Be Shared

• 52 per cent of this money is given to states as grants, while 48 per cent of the N5 billion is to be paid back on an instalment basis within 20 months to the CBN by the States and the local government’s areas in Nigeria.

• This fund has to be distributed to the following sectors: MSMEs, and the industrial sector, about N125 billion will go to cash transfers, the agricultural sector, as well as gas expansion for buses.

Babagana Zulum concluded by saying that NEC appreciated the efforts of President Bola Tinubu and CBN to reduce the impact of the removal of fuel subsidy felt by Nigerians—he said that the council received a total of N500 billion to address the issue of palliatives.