Techrectory
Responding to the escalating costs of essential commodities due to the recent subsidy removal, the Federal Government has greenlit a significant 5 billion Naira palliative for each state, including the Federal Capital Territory (FCT).
This allocation aims to facilitate the acquisition of food items, offering support to the vulnerable population. The decision follows discussions during the National Economic Council (NEC) meeting, chaired by Vice President Kashim Shettima.
Governor Babagana Zulum of Borno State, the bearer of this news, clarified that the earmarked funds are dedicated to procuring 100,000 bags of rice, 40,000 bags of maize, and fertilizers.
Additionally, every state will receive five trucks of rice. Governor Zulum emphasized that 52% of the funds will be disbursed as grants to states, while the remaining 48% will be in the form of loans. Notably, the Federal Government has already dispatched five trucks of rice to each state as an initial relief measure.
This initiative is part of the government’s endeavor to mitigate the hardships faced by citizens due to the removal of fuel subsidies. The decision was prompted by the surge in food and transportation costs resulting from the subsidy withdrawal.
Governor Zulum and fellow state leaders expressed concerns over the economic challenges citizens are grappling with and sought solutions to temporarily alleviate their plight.
Moreover, the National Economic Council has formed a committee, including Anambra State Governor Charles Soludo and Governor AbdulRazaq AbdulRahman of Kwara State, to engage with the Nigerian Labour Congress (NLC) regarding the 5 Billion Naira Palliative demands in light of the subsidy removal.
This development comes on the heels of the Nigerian National Petroleum Company securing a $3 billion Emergency Crude Repayment Loan from the African Export-Import Bank (AFREXIM) Bank, underscoring the government’s commitment to addressing the economic repercussions of recent changes.
