The federal government has disclosed that only N2 billion of the N5 billion subsidy removal relief fund has been disbursed to each state. This financial aid was offered to mitigate the impact of the petrol subsidy removal.
During a press conference in Abuja, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, provided this update. In August, the federal government had announced a N5 billion relief package for each state in the country, including the Federal Capital Territory (FCT), to alleviate the effects of the petrol subsidy removal.
Governor Babagana Zulum of Borno had previously mentioned that this relief would enable state governments to purchase 100,000 bags of rice, 40,000 bags of maize, and fertilizers to address food shortages nationwide.
Minister Edun explained that the government opted to release the funds gradually, citing concerns about potential negative consequences if all the relief funds were released at once. He clarified that the N5 billion consisted of grants from the federal government and loans obtained by the states.
Edun emphasized the need to manage debt effectively and assured that borrowings would be tied to investments under the current administration’s strategy. The government aims to increase revenue through improved tax collection, reducing leakages, and efficiently managing debt.
The primary objectives are to enhance government revenue, ensure efficient government expenditure, and build public trust. President Bola Tinubu’s economic priorities include food security, poverty reduction, economic growth, job creation, and access to consumer credit for average Nigerians. Additionally, his plan focuses on inclusivity, security, the rule of law, and combating corruption to create a fairer and safer environment for all citizens.
