FG Okays N180bn Palliative Fund, Each State Gets Paltry N5bn… 

The federal government has approved a paltry N5 billion for each of the 36 states of the federation for procurement of food items and fertilisers as part of efforts to alleviate the suffering associated with fuel subsidy removal in the country. 

This was the highpoint of the resolutions of the monthly National Economic Council (NEC) meeting held yesterday at State House, Abuja, which was presided by Vice President Kashim Shettima.

Governors Yahaya Bello of Kogi State, Babagana Zulum of Borno State, Charles Soludo of Anambra State, Seyi Makinde of Oyo State, and Uba Sani of Kaduna State briefed newsmen on the outcome of the meeting.

Speaking after the meeting, Zulum explained that the fund was part of measures to bring temporary solution to the high cost of living caused by the subsidy removal, as government continued to work on more enduring programmes. 

He said the states were to purchase with the money 100,000 bags of rice and 40,000 bags of maize, as well as fertilisers, among other items.

The governor added that considering the urgent need to mitigate the effect of the skyrocketing food prices across the country, the federal government had last week released five trucks of rice to each state of the federation.

Zulum said, “NEC met 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 N5 billion to be given to each state for the procurement of 100,000 bags of rice, 40,000 bags of maize, and fertilisers.

“This funding has to be shared with a formula as follows: 52 per cent of this money is given to states as grants, while 48 per cent 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.

“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.”