In addition to further cushioning the effect of the fuel subsidy withdrawal, the Federal Government has reportedly approved N5 billion to be disbursed to 36 states of the federation and the Federal Capital Territory (FCT).
This was disclosed by Babagana Zulum of Borno State at the end of a National Economic Council (NEC) meeting presided over by the Vice President, Kashim Shettima, on Thursday in Abuja.
Zulum said the fund was for the purchase of 100,000 bags of rice, 40,000 bags of maize as well as fertilisers.
Also, the funds were based on 52 percent grants and 48 percent as loans to be repaid to the Central Bank of Nigeria (CBN) within 20 months by the states and local councils.
He said that the council commenced President Bola Tinubu and the CBN for the various efforts aimed at reducing the impact of the withdrawal of the subsidy.
Zulum added that the federal government had sent food items to states bordering the Niger Republic to mitigate the influx of refugees coming into the states.
The states, he said, were also given five trucks of rice each by the federal government last week for distribution to vulnerable Nigerians in their domain.
His words; “Furthermore, Council has 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.
“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.â€
The states, he said, have also been directed to negotiate with the labour unions leadership on the palliatives, adding that a committee of governors had been set up for this purpose.
H said that the council recognised that these interventions were short-term solutions, adding that long-lasting solutions were being worked out.
In addition, Yahaya Bello of Kogi State said that the NEC discussed the issue of the impact of the 2022 flood on states and what needed to be done to victims.
He said that the NEC urged the federal government to immediately dispatch relief materials to the flood victims in the states.
He said that the delay in the disbursement of relief was due to some states that had yet to respond to requests of providing data on the flood situation in their areas.