The Federal Government has announced a palliative of N5 billion for each state of the federation, including the Federal Capital Territoryto cushion the impact of the elimination of the gasoline subsidy.
Borno State Governor Babagana Zulum made the announcement in Abuja on Thursday.
Zulum spoke to House of Representatives correspondents at the end of the National Economic Council meeting, chaired by Vice President Kashim Shettima.
The Governor said that NEC met and expressed serious concerns about the increase in the cost of food and the increase in the cost of transportation, among others, as a result of the removal of subsidies.
To cushion the effect of the removal of subsidies, the federal government delivered five truckloads of rice to each state last week.
In addition, to cushion the effect of food shortages across the country, the federal government approved the sum of 5 billion naira to be given to each state to purchase 100,000 bags of rice, 40,000 bags of corn and fertilizers.
“This funding is to be shared with a formula as follows: 52 percent of this money is given to states as grants, while 48 percent of the N5 billion is to be returned in installments within 20 months to the CBN. by states and local government areas in Nigeria,” Mr. Zulum said.
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He said that the Council praised the efforts of the federal government under the leadership of President Tinubu, as well as the CBN.
“We also commend NEMA’s efforts to cushion the effects of the subsidy removal.
“The Board has also taken note of the $800 million loan and insists that it be used strictly for its intended purpose and based on accurate and acceptable records. The $800 million announced by the president will go to Nigerians according to an accurate social record,” he added.
In addition, he said that the Council has also taken note of the package announced by the President to cushion the effect of the removal of subsidies, which amounts to around N500 billion.
“This fund is to be distributed to the following sectors, MSMEs, industrial sector, around N125 billion will go for cash transfers, agriculture sector and gas expansion for buses.”
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Let hear it in the comment below if you do have an opinion on this; UPDATED: Elimination of subsidies: Nigerian govt approves N5bn relief for states, FCT