Subsidy Removal: FG Shocked Over High Food, Transportation Costs

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The National Economic Council, NEC, yesterday expressed shock over the high cost of food and transportation in the country.

Consequently, it approved N5 billion grant to each of the 36 states of the federation for the procurement of grains as well as five trucks of rice to each state as palliatives to cushion the effect of fuel subsidy removal.

The NEC also approved the distribution of 40,000 bags of maize to be distributed to states, and directed the National Emergency Management Agency, NEMA, to distribute food items to states sharing border with Niger Republic over the recent political instability in the country.

These were among the outcomes of the NEC meeting presided over by Vice President Kashim Shettima, at the Council Chamber, Presidential Villa, Abuja.

Briefing State House correspondents at the end of the meeting, Governor Babagana Zulum of Borno State said the approval of N5 billion and trucks of rice and grains were part of measures to bring temporary solutions to the high cost of living caused by subsidy removal as government continued to work with more enduring programmes.

Zulum, who disclosed that states were mandated to purchase 100,000 bags of rice and beans, among other items, said: “NEC met today (yesterday) and expressed serious concerns as regards increasing cost of food items, increasing cost of transportation, among others, as a result of subsidy removal.
“In order to cushion the effect of subsidy removal, the federal government 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 N5 billion 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 per cent of this money is given to states as grants, while 48 per cent of the N5 billon is to be paid back on an instalmental basis within a period of 20 months to the CBN (Central Bank of Nigeria) by the states and local governments areas in Nigeria.

“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.

“Council has taken bold decisions 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.

Consequently, it approved N5 billion grant to each of the 36 states of the federation for the procurement of grains as well as five trucks of rice to each state as palliatives to cushion the effect of fuel subsidy removal.

The NEC also approved the distribution of 40,000 bags of maize to be distributed to states, and directed the National Emergency Management Agency, NEMA, to distribute food items to states sharing border with Niger Republic over the recent political instability in the country.

These were among the outcomes of the NEC meeting presided over by Vice President Kashim Shettima, at the Council Chamber, Presidential Villa, Abuja.

Briefing State House correspondents at the end of the meeting, Governor Babagana Zulum of Borno State said the approval of N5 billion and trucks of rice and grains were part of measures to bring temporary solutions to the high cost of living caused by subsidy removal as government continued to work with more enduring programmes.

Zulum, who disclosed that states were mandated to purchase 100,000 bags of rice and beans, among other items, said: “NEC met today (yesterday) and expressed serious concerns as regards increasing cost of food items, increasing cost of transportation, among others, as a result of subsidy removal.
“In order to cushion the effect of subsidy removal, the federal government 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 N5 billion 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 per cent of this money is given to states as grants, while 48 per cent of the N5 billon is to be paid back on an instalmental basis within a period of 20 months to the CBN (Central Bank of Nigeria) by the states and local governments areas in Nigeria.

“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.

“Council has taken bold decisions 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.

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