Fuel Subsidy: FG urges Labour, others to be calm, approves N5billion for each State

The Federal Government has called in labour unions, and others to be calm as the Bola Tinubu presidency makes spirited efforts to unveil palliative measures on the heels of fuel subsidy removal.

The latest appeal was made during a briefing by Borno State Governor Prof Umara Zulum, mni after a meeting of the National Economic Council at the Presidential Villa, Abuja on Thursday.

“NEC is calling on Nigerians and labour to be calm, law abiding as the president is determined to address the issues at hand”, he said while rounding up the his briefing after the NEC meeting, presided over by Vice President Kashim Shettima.

Zulum also revealed that, “The Council has also tasked the states to dialogue with the labour unions’ leadership. A committee made up of Anambra State Governor, NGF Chairman and others have (sic) been nominated to interface with labour.”

Newsdiaryonline reports that these palliatives are being unfurled following rising cost of living after fuel subsidy removal.Even more, labour recently protested across the country and there have been hints of looming protests by the unions. With the latest moves, it is apparent FG is determined to calm frayed nerves by unveiling more palliative measures.

FG approves 5billion to each state

Earlier, Zulum revealed that the federal government has approved the sum of N5 billion to be given to each state. It is meant for procurement of 100,000 bags of rice, 40,000 bags of maize and fertilizers, the governor said.

The amount is entirely to cushion the effect of food shortages across the country.

Zulum said, “NEC met today and expressed serious concerns as regards increasing cost of food items, increasing cost of transportation amongst others as a result of subsidy removal. In order to cushion the effect of subsidy removal, the federal government has released five trucks of rice to each state last week.

“Furthermore, in order to cushion the effect of food shortages across the country, the federal government has approved the sum of N5billion to be given to each state for the procurement of 100,000 bags of rice, 40,000 bags of maize and fertilizers.

“This funding has to be shared with a formula as follows: 52% of this money is given to states as grants, while 48% of the N5billon is to be paid back on an instalment basis within a period of 20 months to the CBN by the states and the local governments areas in Nigeria.

He noted that, “The Council commended the efforts of the federal government under the leadership of President Tinubu as well as the CBN. We have also commended the efforts of NEMA in cushioning the effects of the subsidy removal.

Furthermore Zulum said, “Council has taken bold decisions in order to ensure speedy release of grains and other items in order to cushion the effects of subsidy removal on the less privileged in the society.

“Council has also taken note of the $800 million loan and insists that it be strictly used for intended purpose and based on accurate and acceptable register.

“The $800million announced by the president will go to Nigerians in accordance with an accurate social register.

“Furthermore, Council has also noted the package that was announced by the president in order to cushion the effect of subsidy removal, amounting to about N500billion. This fund has to be distributed to the following sectors: MSMEs, industrial sector, about N125billion will go to cash transfers, agricultural sector as well as gas expansion for buses.

He reiterated that, “Because of the increasing cost of fossil fuel, the federal government intends to establish more gas stations in Nigeria, procure more gas powered buses, CNG buses, as well as electric buses in order to cushion the effect of the subsidy removal.

“Furthermore, NEMA will also liaise with states in order to distribute foodstuffs to the people immediately, especially those affected in the frontline states that are bordering Niger Republic because of influx of refugees.

“The most important thing that the Council has taken note of is that all these palliatives that are being mentioned now are temporary solutions.

“Council has decided to invest in medium and longer term sustainable solutions that will ensure availability of food and non food solutions in Nigeria, especially investing in commercial agriculture and also investing in irrigated agriculture.”