Tobias Sylvester
The federal government said it has released N2 billion as an initial intervention from the N5 billion palliative package offered to each state to mitigate the impact of the removal of the petrol subsidy.
KanyiDaily recalls that in August, the federal government announced the N5 billion palliative package for each state, including the federal capital territory (FCT), to cushion the effects of the petrol subsidy removal.
During a press conference in Abuja on Friday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun confirmed that N2 billion has been disbursed to each state government from the N5 billion allocated for the palliative measure.
Edun explained that the government is aware of the potential negative consequences of releasing the entire palliative funds at once, which could lead to inflation and adversely affect the cost of goods and exchange rates.
“On the issue of the 5 billion, it is a combination of grants from the federal government and borrowing by the states,” the minister said.
“And of course, although the sum of 5 billion is earmarked, you will agree with me that to release such funds across all the states all at once will be self-defeating because it will lead to an inflationary spiral. It will lead to the cost of goods being sold going up and it will affect the exchange rate.
“And so, it is N2 billion that has been released as an initial intervention and FCT will be included is the information that I have.”
KanyiDaily recalls that rapper Eedris Abdulkareem described Tinubu’s palliative as a scam, stressing that Nigerians need opportunities for productivity, not handouts.
