19 million households benefit from FG N4.3tn palliatives
19 million households benefit from FG N4.3tn palliatives
The Federal Government may have rolled out palliatives worth N4.3tn to cushion the effects of the fuel subsidy removal under the current administration, Sunday PUNCH has gathered.
Parts of the palliatives have been payments of cash to no fewer than 18.7m vulnerable households, and acquisition of CNG powered buses amid the rising spate of inflation.
It also included agricultural interventions and financial aids to manufacturers as well as small and medium scale enterprises in the country.
This was just as the presidency said the series of palliatives were informed by President Bola Tinubu’s determination to provide succor to Nigerians amid the consistent wave of economic hardship and inflation
Recall that shortly after President Bola Tinubu pronounced the removal of fuel subsidy at his inaugural speech, the World Bank said about 7.1 million Nigerians were at risk of poverty if the Federal Government failed to compensate or provide palliatives for them.
“The removal of the petrol subsidy had caused an increase in prices, adversely affecting poor and economically insecure Nigerian households. Petrol prices appear to have almost tripled following the subsidy removal.
“The poor and economically insecure households, who directly purchase and use petrol as well as those that indirectly consume petrol, are adversely affected by the price increase. They will face an equivalent income loss of N5,700 per month, and without compensation, an additional 7.1 million people will be pushed into poverty,” the World Bank stated.
However, in a national broadcast on July 31, President Tinubu announced the government’s first sets of palliatives, which included N100bn to acquire 3,000 units of 20-seater CNG-fuelled buses, N200bn to boost agriculture production, N75bn for manufacturers, and N125bn for micro, small and medium-sized enterprises, and the informal sector.
The president had said the move would tone down the agony of Nigerians from the pains of fuel subsidy removal.
It also included agricultural interventions and financial aids to manufacturers as well as small and medium scale enterprises in the country.
This was just as the presidency said the series of palliatives were informed by President Bola Tinubu’s determination to provide succor to Nigerians amid the consistent wave of economic hardship and inflation
Similarly, in August last year, the Federal Government announced N5bn as palliative measures for each state of the federation and 180 trucks of rice.
The Borno State Governor, Babagana Zulum, who made the announcement, said the N5bn would enable the state governments to procure 100,000 bags of rice, 40,000 bags of maize, and fertilisers to cushion the food shortage in the country.
In 2023, the government also announced N35,000 monthly provisional wage award for all treasury-paid Federal Government workers for six months, which began in September last year.
The Director-General of the Budget Office of the Federation, Ben Akabueze, had revealed that the Federal Government’s personnel cost was over N5tn, with 1.5 million workers on its payroll.
This implied that the government’s N35,000 commitment to workers would cost N315bn for the six months.
While announcing the N35,000 wage award, the Minister of Information and National Orientation, Mohammed Idris, also revealed that the government would commence the payment of N75,000 to 15 million households at N25,000 per month for three months (October and December 2023), totalling N1.13tn for the period.
There was also the controversial N70bn palliative earmarked to lawmakers to support “the working conditions of National Assembly members.”
The Federal Government also announced an extension of the N75bn loan facility to 1.5 million market women, which brought the total palliative and loan pledge by the Federal Government last year to N3.27tn.
Meanwhile, on Thursday, President Tinubu announced fresh N1tn palliatives of the Federal Government to Nigerians.
Speaking at the 142nd National Economic Council meeting attended by state governors and some deputies at the State House, Abuja, the president announced a National Construction and Household Support Programme which will see 100,000 families in each state get N50,000 grant for three months.
The president said N155bn will be disbursed for assorted foods, N540bn for household grants, while the 36 states and the Federal Capital Territory would get N10bn allocations each for CNG buses.
According to him, the N50,000 grant was being planned for 3.7 million families across the 36 states and the FCT, which takes the total number of families so far captured in the government’s households grant to 18.7m under the current administration.
In total, the N50,000 planned for 3.7 million families across the 36 states and the FCT, the N10bn allocation each for CNG buses in the 36 states and the FCT, as well as the N155bn spending on assorted foods, are estimated to cost over N1tn.
Speaking with Sunday PUNCH, the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, said while he cannot talk on the past interventions that have not been executed, the latest palliatives came as a result of the president’s determination to always provide succour to Nigerians amid the challenging times.
“While we can’t speak on what has not been executed, especially the past interventions, the latest ones are coming out of the réalisation that despite all the palliatives given to our people, the hardship continues. And then the president, being a compassionate person, is looking for ways to further ameliorate whatever problems the people are facing. That’s basically what it’s about.
“You cannot say the past one did not have any impact. Workers get wage awards for six months. I am a worker and I and everybody on the federal payroll received it. So we can’t say it’s not been impactful. It was a kind of relief for everybody working for the federal government. And the states did similar things. But this one, we’re pumping money to do more,” Onanuga stated.
“You see, the biggest problem in our country today, the reason people are crying over inflation is because many of them lack disposable income. That’s why they are seriously affected.How do you want to survive on N30,000 with the inflation. So we must look at it in that light, that the government is trying to help as many people and businesses as possible,” he added.
Commenting in separate interviews with our correspondent, economists noted that giving cash palliatives is crucial to mitigating the effect of the petrol subsidy removal, especially on the less privileged and dependents.
A professor of monetary economics, Olusegun Ajibola said palliatives become essential and unavoidable during emergency situations when people are in dire need with their economic survival under severe threat.
Another economist, Johnson Chukwu, aalso said it is the responsibility of the government to care for the less privileged in the society, but the palliative schemes should not be used to further enriched the political class in the country.
