The Federal Government has implemented a comprehensive package of palliatives valued at N4.3 trillion, aimed at mitigating the impact of fuel subsidy removal on Nigerian citizens, under the present administration.
The palliative package has included financial support to at least 18.7 million vulnerable households and the procurement of CNG-powered buses, a response to the growing challenge of inflation.
The palliatives also included support for agricultural development, financial assistance to manufacturers, and aid to small and medium-scale enterprises.
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.
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 outlined a funding plan that includes N155 billion for assorted foods, N540 billion for household grants, and N10 billion each for the 36 states and FCT to support CNG bus adoption.
The President stated that the N50,000 grant will be provided to 3.7 million families, in addition to the 15 million families already benefiting from the household grant, bringing the total to 18.7 million families, under the current administration.
