The National Economic Council (NEC) on Thursday approved the release of N5billion to each State of the Federation as a deliberate intervention measure to cushion the impact of the removal of subsidy on petrol.
President Bola Tinubu during his inauguration on May 29th announced the removal of subsidy on Premium Motor Spirit (PMS), a decision which has pushed up the cost of living and consumable items.
States are expected the utilize the funds for the procurement of 100,000 bags of rice, 40,000 bags of maize and fertilizers to support citizens and improve their living conditions.
Borno State Governor, Professor Babagana Zulum who stated this while briefing State House Correspondents said that the money is in addition to the Federal Government’s $800 million earlier proposed and approved by the National Assembly for the intervention.
Zulum, who briefed the newsmen along with Governors Seyi Makinde of Oyo State, Yahaya Bello of Kogi State, Uba Sani of Kaduna State and Charles Soludo of Anambra State, gave the details of the N5 billion.
According to him, 52 percent of it is given as grants, while 48 percent is to be paid back on an instalment basis within a period of 20 months. The money will be refunded through the CBN .
He said that NEC, made up of the governors was concerned “as regards increasing cost of food items, increasing cost of transportation amongst others as a result of subsidy removal.”
“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 insist 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,” the Governor noted.
“NEC said that the package that was announced by the President in order to cushion the effect of subsidy removal, amounting to about N500 billion.