“Federal govt’s subsidy palliative to states N2.3 billion, not N5 billion”

The federal government is not providing N5 billion to states as aid following the removal of petrol subsidy as states are contributing to the amount, Nasarawa state governor Abdullahi Sule has said.

The federal government said it was handing N5 billion as “palliative” to states and grains to ease the impact of removing subsidy on citizens. Many Nigerians have dismissed the amount as too little given the scale of economic hardship in the country.

Mr Sule said the federal government is providing N4 billion in cash and N1 billion worth of grains to states.

However, states will pay back N1.92 billion of the sum. Nasarawa has received N2 billion from the federal government and will soon share to residents, the governor said.

“As far as the palliative is concerned, you have been hearing of N5 billion that is going to be given to the states, it is indeed N5 billion, but the N5 billion is not all in cash,” he said Tuesday at the capital Lafia, according to the News Agency of Nigeria.

“N4 billion is being given to every state, and out of the N4 billion the federal government is going to contribute N2. 80 billion. That is 52 percent of the total amount, and the state will contribute N1.92 billion, that is the details of the amount.

“On the part of the Federal Government, it has already sent N2 billion to us, it will send the remaining N2 billion to us. But N1.92 billion of that money will be repaid to the Federal Government by the states under ISPO (irrevocable standing payment order),” he said.

Sharing formular

Mr Sule said, “In addition to that, the N1 billion that you have not had is not coming in cash, the Federal Government has grains at strategic reserves all over the country, it has maize, so the N1 billion worth of maize at N25,000 per bag will be given to every state.”

“Because all their monies supposed to go for food items, how do they come up with the calculation of N4 billion?  What Federal Government has in mind is to buy only rice at N40,000 per bag. N100,000 bags of rice at N40,000 per bag is amount to N4 billion,” he explained.

The governor said the state had engaged traditional and religious leaders, inter-party advisory council, youth and women groups and officials of government to determine how the money and grains will be shared.

He said the distribution will be done without consideration for political affiliations.