*States insist World Bank’s $800m support should be through cash transfers
Anietie Udobit, Abuja
Grow your business with us
The federal government has approved 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, presided by Vice President Kashim Shettima.
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 today and 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.”
However, Zulum said NEC insisted that the federal government should deploy the $800 million loan from the World Bank the way it was initially planned, through conditional cash transfers, using the registers to be provided by the states.
According to him, “Council has also taken note of the $800 million loan and insist that it be strictly used for intended purpose and based on accurate and acceptable register.
“The $800million announced by the president will go to Nigerians in accordance with an accurate social register.”
He noted that besides the plan to take care of the immediate effects of subsidy removal through food reliefs, the council took notice of federal government’s wider plan to deploy the N500 billion approved by the National Assembly towards strengthening agriculture, transportation, and industry.
He said, “Furthermore, 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, industrial sector, about N125 billion will go to cash transfers, agricultural sector, as well as gas expansion 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.”
Zulum also said NEC agreed that the frontier states bordering Niger Republic were to be assisted with more palliative materials than other states, considering the influx of refugees into their domains from the troubled neighbouring country.
“Furthermore, 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 influx of refugees,” he said.
The Borno State governor disclosed that the council set up a committee, consisting of Chairman of Nigeria Governors’ Forum (NGF), Governor of Kwara State, Abdulrahaman Abdulrazaq, Soludo, and others, to interface with organised labour on the post-subsidy situation in the country.
He stated, “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 longer term sustainable solutions that will ensure 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, law-abiding, as the president is determined to address the issues at hand.”