FG Allocates N185 Billion For States And FCT To Secure Grain Reserves

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A recent government decision has paved the way for an allocation of N185 billion to be dispersed across all 36 states within the Nigerian federation, in addition to the Federal Capital Territory (FCT). This financial package is intended to empower these regions to acquire 100,000 bags of rice and assorted grains, which will then be distributed as part of a wider palliative effort.

Babagana Zulum, Governor of Borno State, unveiled this major development during a press briefing subsequent to a session of the National Economic Council (NEC). The meeting, under the leadership of Vice President Shettima Kashim, convened at Abuja’s Presidential Villa.

Joining Governor Zulum at the media event were several other governors, including Uba Sani of Kaduna, Seyi Makinde of Oyo, Charles Soludo of Anambra, and Yahaya Bello of Kogi. The governor highlighted that just the previous week, each state, and the FCT was provided with five truckloads of rice for similar purposes.

These financial provisions stem from the efforts of the Tinubu-led administration; which aims to alleviate the compounding effects of fuel subsidy withdrawals and the resulting surge in food prices. Each state and the FCT is set to receive N5 billion, a portion of which is anticipated to be reimbursed to the federal government.

Elaborating on the financial structure, Zulum specified that 48 percent of the N5 billion will be gradually returned to the Central Bank of Nigeria (CBN) by each state over a period of 20 months. The remaining 52 percent of the grant will be borne by the federal government.

Governor Zulum also emphasized that the $800 million loan secured from the World Bank during the previous administration of Muhammadu Buhari will be allocated in alignment with its intended purpose. Other funds dedicated to the welfare of Nigerians will similarly be disbursed for their intended objectives.

The Governor highlighted that The NEC convened today to address the mounting concerns arising from the increasing costs of essential commodities and transportation due to the withdrawal of subsidies. As a measure to mitigate the effects of this action, the Federal Government released five truckloads of rice to each state last week.

Recognizing the proactive steps taken by the federal government, Governor Zulum unveiled the establishment of an Ad-hoc Committee, consisting of state governors, to engage in discussions with labor union leaders concerning the removal of petroleum subsidies. The committee’s deliberations aim to chart a path forward for the nation.

The NEC acknowledges that the immediate relief measures currently underway represent short-term solutions. The Council’s focus is on investing in enduring, sustainable strategies to ensure food security and broader economic stability.

 

 

 

 

 

 

 

 

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