FG Gives N5bn To Each State, FCT As Palliatives to Cushion Fuel Subsidy Removal

The federal government of Nigeria has announced a major relief package for the 36 states and the Federal Capital Territory (FCT) to help them cope with the impact of the removal of the fuel subsidy.

The subsidy, which has been in place for decades, was scrapped by President Bola Tinubu in his inaugural speech on May 29, citing budgetary concerns and the need to invest in public infrastructure.

According to Governor Babagana Zulum of Borno State, who spoke to journalists after the National Economic Council (NEC) meeting on Thursday, each state will receive a sum of N5 billion as palliative from the federal government.

He said the NEC, which comprises the governors, the vice-president, and some ministers and heads of agencies, agreed on this measure to cushion the effect of the fuel price hike on the citizens.

He also said that states bordering Niger Republic would get additional support from the federal government because of the influx of refugees fleeing from the crisis in their country. He said the NEC discussed various issues affecting the nation, especially the security and economic challenges.

Zulum said the palliatives would be used to provide transportation, food, and other essential services to Nigerians who are most affected by the fuel price increase. He also said that the government would be working with states to ensure that the palliatives are distributed fairly and efficiently.

The removal of fuel subsidy has been a controversial topic in Nigeria. Some people argue that it is necessary to save the government money, while others argue that it will hurt the poor and middle class. The government has said that the palliatives are a way to mitigate the negative effects of the subsidy removal.

The palliatives will be distributed to states based on their population and poverty levels. States that are more affected by the fuel price increase will receive more money. The government has said that it will work with states to ensure that the palliatives are distributed fairly and efficiently.

The removal of fuel subsidy is a major policy change that will have a significant impact on Nigerians. The government’s decision to provide palliatives is a step in the right direction, but it remains to be seen whether the measures will be enough to mitigate the negative effects of the subsidy removal.

President Tinubu has assured Nigerians that the subsidy removal will free up funds for more productive sectors and improve the lives of the people. He also promised to release his economic roadmap in the coming weeks and address the high inflation and unemployment rates in the country.

However, some civil society groups and opposition parties have criticized the president’s decision and threatened to stage protests against it. They have accused him of reneging on his campaign promises and being insensitive to the plight of the masses. They have also called for a probe into the alleged corruption and mismanagement of the subsidy scheme over the years.

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