The Nigerian government has been chastised by organized labour for giving a N180 billion palliative package to states to soften the impact of the cessation of fuel subsidy.
The Nigeria Labour Congress and the Trade Union Congress maintained that the governors could not be trusted, stressing that the N5 billion largesse handed to each state government for disbursal to Nigerians would enrich politicians rather than the impoverished.
The Federal Government announced on Thursday a N5 billion palliative for each state of the federation, as well as 180 trucks of rice, as part of steps to ease the pain of subsidy termination.
The programme, which resulted in dramatic and repeated rises in petrol pump prices, has pushed up the prices of products and services, forcing millions of Nigerians into poverty and exacerbating the country’s socioeconomic predicament.
The move also sparked widespread protests by organized workers, who demanded that refineries be repaired as a condition for subsidy removal.
However, in announcing the release of the palliative at the end of the 135th National Economic Council meeting in Abuja presided over by Vice President Kashim Shettima, Borno State Governor, Babagana Zulum, revealed that the N5 billion was to enable state governments to procure 100,000 bags of rice, 40,000 bags of maize, and fertilizers to cushion the effect of food shortages across the country.
He stated that, in light of the need to reduce the country’s increasing food costs, the Federal Government issued five trucks of rice to each state of the federation last week.
“NEC met today and expressed serious concerns about rising food prices and rising transport costs, among other things, as a result of subsidy removal,” Shettima added. Last week, the central government provided five trucks of rice to each state to mitigate the impact of subsidy termination.
“Furthermore, in order to mitigate the impact of food shortages across the country, the Federal Government has approved N5 billion for each state to purchase 100,000 bags of rice, 40,000 bags of maize, and fertilizers.”
“These funds must be distributed using the following formula: 52 percent of this money is handed to states as grants, while the remaining 48 percent is to be paid back to the CBN in installments over a 20-month period by Nigeria’s states and local government areas.
“The council praised the efforts of the Federal Government, led by President Tinubu, as well as the CBN.” We also applauded NEMA’s efforts to mitigate the consequences of the subsidy termination.
The Council has taken bold decisions to ensure the timely release of grains and other items in order to mitigate the effects of subsidy removal on the less privileged in society.”
He remarked that the council took courageous steps to enable the prompt delivery of grains and other products for quick distribution to society’s least fortunate.
“The council has also taken note of the $800 million loan and insists that it be strictly used for the intended purpose and based on an accurate and acceptable register,” Shettima added. The $800 million declared by the president would be distributed among Nigerians based on an accurate social registry.
“Furthermore, the council has taken note of the package announced by the president to cushion the impact of subsidy removal, which amounts to approximately N500 billion.”
“This fund must be distributed to the following sectors: MSMEs, industrial sector; approximately N125 billion will be used for cash transfers; agricultural sector;; and bus gas expansion.”
“In addition, due to the rising cost of fossil fuels, the federal government intends to build more petrol stations in Nigeria and purchase more gas-powered buses, CNG buses, and electric buses.”
He stated that the council praised the Federal Government and the CBN for their efforts in addressing the country’s present condition.
