The Federal Government has announced a N5 billion palliative for each state of the federation, including the Federal Capital Territory, to cushion the impact of the removal of the petrol subsidy.
The governor of Borno State, Babagana Zulum, made the announcement in Abuja on Thursday.
Mr Zulum spoke to State House correspondents at the end of the National Economic Council meeting, presided over by Vice President Kashim Shettima.
The governor said that NEC met and expressed serious concerns about the increasing cost of food items and the increasing cost of transportation, amongst others, as a result of subsidy removal.
To cushion the effect of subsidy removal, the federal government released five trucks of rice to each state last week.
Furthermore, to cushion the effect of food shortages across the country, the federal government approved the sum of N5 billion to be given to each state to procure 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 N5 billion is to be paid back on an instalment basis within 20 months to the CBN by the states and the local government’s areas in Nigeria,” Mr Zulum said.
He said 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 also taken note of the $800 million loan and insists that it be strictly used for the intended purpose and based on accurate and acceptable registers. The $800 million announced by the president will go to Nigerians in accordance with an accurate social register,” he added.
Furthermore, he said the Council has also noted the package announced by the president to cushion the effect of subsidy removal, amounting to about N500 billion.
“This fund has to be distributed to the following sectors MSMEs, industrial sector, about N125 billion will go to cash transfers, agricultural sector as well as gas expansion for buses.”
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