Removal of Subsidies: FG Approves $5 Billion for Each State and FCT

Additionally, it gave each of the 36 state governors five trucks of rice.

To allow them to purchase food products for distribution to the underprivileged in their respective states, the Federal Government has authorised N5 billion for each state and the Federal Capital Territory (FCT).

It was announced at the Presidential Villa in Abuja immediately after the National Economic Council (NEC) meeting by Governor Babagana Zulum of Borno State.

The event on Thursday follows the increase in the price of food goods and petrol as a result of the withdrawal of the commodity’s subsidy.

Zulum said that in addition to the payment, the 36 governors of the state received five trucks of rice apiece from the federal government.

The state governors are to purchase 40,000 bags of corn, 100,000 bags of rice, and fertilisers, Governor Zulum further said.

He stated that 52% of the cash were distributed as grants to the state governments, while 48% were disbursed as loans.

It established a committee with Charles Soludo, the governor of Anambra State, and Governor AbdulRazaq AbdulRahman of Kwara State as members, among others, with the task of interacting with the leadership of the Nigerian Labour Congress (NLC) regarding the latter’s push for palliatives as a result of the subsidy removal.

NEC also reviewed security problems, particularly recent assaults in the northern areas of the nation, in addition to the economic challenges Nigeria is facing in the aftermath of the withdrawal of subsidies.

Governors and other participants were present during the conference in addition to Vice President Kashim Shettima, who served as its chair.

The NEC has been debating how to mitigate the effects of the subsidy elimination.

After obtaining a $3 billion Emergency Crude Repayment Loan from the African Export-Import Bank (AFREXIM) Bank, the Nigerian National Petroleum Company (NNPC) Limited held its most recent meeting of the NEC just hours afterwards.