States, LGs Get N93.6bn Grant, N86.4bn Loans To Ease Hardship From Subsidy Removal

The Federal Government has given out a total of N180 billion to 36 states for the procurement of food items to be distributed to the most vulnerable households and residents across the country.

Of this amount, N93.6 billion representing 52 percent is a grant to them while N86.4 billion, or 48 percent is a loan that will be paid back to the Central Bank of Nigeria (CBN) over a period of 20 months

Borno State Governor, Babagana Zulum, announced this Thursday alongside four other Governors after the meeting of the National Executive Council (NEC) chaired by Vice President Kashim Shettima at the Aso Rock Villa, Abuja.

The other Governors were Yahaya Bello (Kogi), Seyi Makinde (Oyo), Charles Soludo (Anambra), Uba Sani (Kaduna),

“This funding has to be shared with a formula as follows: 52% of this money is given to States as grants, while 48% of the N5 billion is to be paid back on an installment basis within a period of 20 months to the CBN by the States and the local governments’ areas in Nigeria.”

From the amount, Zulum said each State is to purchase 100,000 bags of rice and beans, 40,000 bags of maize, and fertilizers for distribution to residents; and this is in addition to five trucks of grains released by the Federal Government to each State Government for the same purpose.

The measures taken by the government to bring temporary relief to the most vulnerable Nigerians burdened by the high cost of living caused by fuel subsidy removal.

“NEC met today and expressed serious concerns as regards increasing cost of food items, and increasing cost of transportation amongst others as a result of subsidy removal, stated Zulum who noted that part of it was the five trucks of rice released to each of the 36 states last week for distribution.

“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 fertilizers.

The Governor disclosed that NEC also insisted that the $800 million loan being secured by the Federal Government from the World Bank be strictly used for intended purposes and based on an accurate and acceptable social register.

He added: “Council has also noted the package that was announced by the president in order to cushion the effect of subsidy removal, amounting to about N500 billion.

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

“Because of the increasing cost of fossil fuel, the federal government intends to establish more gas stations in Nigeria, procure more gas-powered buses, CNG buses, as well as electric buses in order to cushion the effect of the subsidy removal.

“The National Emergency Management Agency (NEMA) will also liaise with States in order to distribute foodstuffs to the people immediately, especially those affected in the frontline States that are bordering Niger Republic because of the influx of refugees.

“The Council has also tasked the States to dialogue with the labour unions’ leadership. A committee made up of Anambra State governor, NGF Chairman, and others has been nominated to interface with labour.

“The most important thing that the Council has taken note of is that all these palliatives that are being mentioned now are temporary solutions. Council has decided to invest in medium and long-term sustainable solutions that will ensure the availability of food and non-food solutions in Nigeria, especially investing in commercial agriculture and also investing in irrigated agriculture.

“NEC is calling on Nigerians and Labour to be calm and law-abiding as the President is determined to address the issues at hand.”

The NEC Committee to dialogue with labour unions comprises the Nigerian Governors Forum Chairman, AbdulRahman AbdulRazaq; the Governor of Anambra State, Chukwuma Soludo; the 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.

It was also reported to NEC that the federal government’s current financial status comprises an Excess Crude Account of $473,754,507 that accrued between 19th July and 14th August 2023, a Stabilisation Account of N30,346,557,405.12 realised between 18th July to 14th August 2023, the Natural Resources Account which has a revenue of N115,175,616,159.65 earned from 18th July to 14th August 2023.

NEC also resolved to set up a five-man Ad-hoc Committee on flooding across the country, comprising of Governors of Jigawa, Kogi, Anambra, Bayelsa, Lagos and Yobe States. The following were also coopted into the Committee: Minister of Finance, Budget, and National Planning; Minister of Water Resources; Minister of Agriculture and Rural Development; Minister of Humanitarian Affairs and Disaster Management; Governor of Central Bank of Nigeria; Director General, National Emergency Management Agency (NEMA).

The Terms of Reference of the Committee are to “review the current flooding situation in the country and design a template for compensation of victims”.

The NEC Secretariat was mandated to develop and forward a Template with an accompanying letter to all the affected States to collect data on the Preliminary Assessment of the impact of the flood in the affected communities, harmonize the data and produce a report of their findings to the Committee.

In the meantime, NEC underscored the need to expedite the release of funds to affected States as recommended by designated Committees constituted by the Federal Government to that effect, especially towards addressing the needs of the victims as well as offset debt incurred by some States to assist their citizens.

NEC also mourned the death of some military personnel in Niger State and observed a minute silence in honour of the deceased, while commiserating with their families.