FG Releases N2bn Palliative Funds to Each State, FCT to Cushion Subsidy Removal Impact

The Federal Government has disbursed N2 billion to each of the 36 states and the Federal Capital Territory (FCT) as part of the palliative measures to ease the hardship caused by the removal of fuel subsidy.

The subsidy removal, which took effect in May 2023, has led to a sharp increase in the price of petrol and other commodities.

The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, disclosed this at his maiden press briefing in Abuja on Friday. He said the government decided to release the funds in phases to avoid fuelling inflation and destabilising the economy.

He added that the total amount earmarked for the palliative programme was N5 billion per state, which would be a mix of grants and loans.

Edun said the government was aware of the negative impact of the subsidy removal on the living standards of Nigerians, especially the poor and vulnerable.

He said the palliative funds were meant to assist the states in providing food and agricultural inputs to their citizens. He also said the government had sent five trucks of rice to each state as part of the relief package.

The finance minister said the subsidy removal was a necessary step to free up resources for public infrastructure and social services.

He said the president was committed to delivering a better life to Nigerians by encouraging investment that would boost productivity, grow the economy, create jobs and reduce poverty. He urged Nigerians to be patient and supportive of the government’s policies.

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