At its 135th meeting chaired by Vice President Kashim Shettima in Abuja, Thursday, the National Executive Council (NEC) confirmed the approval of N185 billion lifeline for the 36 states of the federation and the Federal Capital Territory (FCT) as palliatives to cushion the effects of subsidy removal on Nigerians.
Addressing State House correspondents at the end of the monthly NEC meeting in Abuja, Borno state Governor Babagana Zulum said each state and the FCT would receive N5 billion.
He said the states and FCT are to purchase 100,000 bags of rice and beans and 40,000 bags of maize, among other items, to be distributed to the less privileged in the society.
The governor also disclosed that five trucks of rice and grains were distributed as part of measures to alleviate the current economic hardship due to the high cost of living as government continues to work out more enduring programmes.
Already, the governor said Nigeria had started having refugees from Niger Republic, a development he said was affecting the distribution of palliatives.
He said government had directed the National Emergency Management Agency (NEMA) to distribute food items to states sharing border with Niger Republic over the recent political instability in the country.
“NEC met 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 fertilizers. 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 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.
“Council has also taken note of the $800 million loan and insists that it be strictly used for intended purpose and based on accurate and acceptable register. The $800 million announced by the president will go to Nigerians in accordance with an accurate social register.
“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 N125billion 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.
“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. 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 have 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,” the governor explained.
Engaging labour
The council also constituted an Ad-hoc Committee to engage with the leadership of labour unions to create a forum for dialogue towards resolving issues surrounding the petrol subsidy removal across the states.
The committee comprises the chairman of Nigeria Governors Forum, AbdulRahman AbdulRazaq of Kwara state; Governor of Anambra State, Chukwuma Soludo; Chairman of Progressives Governors Forum, Hope Uzodinma of Imo state; chairman of PDP Governors Forum, Bala Mohammed of Bauchi state; and Governor Alex Otti of Abia state.
The council also received progress reports on the ongoing nationwide distribution of rice, grains, fertiliser, and urged state governments to upscale the distribution of palliatives towards alleviating the suffering of the citizens, especially the vulnerable groups.
The council also mourned and observed a minute silence in honour of the deceased military personnel killed in Niger state by terrorists, while commiserating with their families.
Also speaking, Governor Soludo said that the review of social register was in progress, hence the delay in the distribution of palliatives to the poor.
CSOs seek inclusion, transparency
In his intervention, a development consultant and public analyst, Mr Jide Ojo, said there were not yet parameters for distribution and therefore called for the setting up of a committee to serve as multipurpose for labour, civil society groups and the media to deliberate on what should be done within 2 weeks.
He opined that if the money is left with the state governments alone, they would compile nebulous social register and “you will hear N10, 000 was disbursed to 1million Nigerians which cannot be clarified.”
He expressed concern that there is a decay state of infrastructure in many states just like there are issues of food security.
“The governor can set up a committee including the commissioners, representatives of the media, CSOs, Labour Unions that should come up with how the monies should be distributed within two weeks.
“We heard of many states who are suffering of bridge collapse due to the raining season. Such states are Ibadan (Oyo state) through to Osun, other states are the road linking Bauchi to Gombe amongst others,” Ojo said.
Also speaking, Executive Director Civil Society Legislative Advocacy Centre (CISLAC), Head Transparency International (Nigeria) and Chairman Amnesty International (Nigeria) Board of Trustee, Auwal Musa Rafsanjani, called for transparency and inclusion in the distribution of these funds.
“We expect that a committee must be constituted in each local government which includes labour unions, CSOs, media, religious leaders who can identify those who really need the monies and should be monitored,” he said.
