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Tag: Subsidy

  • Subsidy removal: Ondo begins distribution of palliatives

    Subsidy removal: Ondo begins distribution of palliatives

    Ondo state government has begun distribution of palliatives to vulnerable households in the state.

    It flagged off the distribution in four Local Government Areas in the Akokoland.

    The state commissioner for Information and Orientation, Bamidele Ademola-Olateju, who spoke at the flag-off of the distribution exercise in Isua, headquarters of Akoko South East Local Government, said the food palliative would reach the targeted beneficiaries.

    Bamidele said 1,200 bags of rice would be distributed to 6,000 households in the area irrespective of political affiliations.

    She said: “There will be five people to a bag of rice and here, we have trucks coming in to take the palliatives to various towns in Akoko South East comprising Ipesi, Sosan, Ifira, Epinmi, Isua among others. We have 1,200 bags of rice for Akoko South East and we are targeting 6,000 households in the local government.

    Read Also: Blackmail, lies won’t stop my loyalty to Akeredolu, says Ondo deputy governor

    “We have selected the most vulnerable households but based on our experience while we are drawing the list, we have seen that we will go very far. We have a Muslim community, Christian Association, Market women, traders association, tailoring association, and Iyalojas among others.

    “We have been very diligent in making this selection. We will learn a lot of lessons from the distribution. Whatever lessons we learn, we are going to share it with the main committee and we hope we don’t learn bad lessons and even if we learn bad lessons, we hope to gain from it because this is the first tranche and lesson we be improved upon.”

    A former chairman of Akoko South East Akin Aibinuomo, said the community was given 160 bags of 50kg rice as palliatives.

    He said the people were happy because the oil subsidy has made it a little difficult for the people.

  • Beneficiaries of subsidy ready to undermine govt, says VP Shettima

    Beneficiaries of subsidy ready to undermine govt, says VP Shettima

    Vice President Kashim Shettima has said that those who lost out as a result of the removal of subsidy were determined to frustrate the government’s policies and programmes.

    Shettima made this disclosure in Abuja on Tuesday, September 5, at the 16th Annual Banking and Finance Conference organised by the Chartered Institute of Bankers of Nigeria (CIBN).

    He said the Bola Ahmed Tinubu administration remains committed to its decisions, policies, and programmes and vowed that the removal of subsidy is irrevocable.

    Addressing the audience, Shettima stated: “We know the consequences of unveiling a masquerade. We know the fuel scam industry is a very hugely loaded industry, they will make every effort to undermine us but as I said earlier the removal of fuel subsidy is irrevocable; truly we are in dire straits.”

    On the outcomes of recent government policies and programmes especially the removal of subsidy, Shettima said: “I must announce with pride that our decisions are already yielding tangible results, with both state and federal governments now enjoying more substantial allocations.”

     “These funds promise a direct and positive impact on the lives of our citizens. Without the serially unaccounted fuel subsidies, we can now redirect our savings towards more deserving causes”.

    The vice president invited the banking community to join the government in rejuvenating the economy.

    According to him, “We must now do what pessimists may regard as impossible: turning the economy around in record time. We seek your partnership in getting this done. We cannot take your support for granted.

    Read Also: Protest against fuel subsidy removal in 2012 was mere politics, says Fayemi

    “This journey towards economic rejuvenation is not one to be undertaken in isolation. It is a call to forge robust partnerships with strategic nations and multilateral organizations, for in unity, Nigeria can reposition itself as a formidable, globally competitive partner.”

    Speaking further Shettima said: “We have promised to reposition consumer finance, and that can’t be done without you. We have promised to incentivise and finance value-addition to our agricultural and other products, and you are our ally in this. We need you because Nigeria teeters on the edge of a precarious balance of payments as we import more than we export.

    “The future is already here, and this industry is a springboard for the success of our reforms and programmes. Whether in incorporating blockchain technology or expanding financial inclusion to deliver dividends of democracy to banking and unbanked citizens, Nigeria is here to occupy the high table in a fast-changing world”.

    The government he said envisions “a future where no leader can resort to the tired excuse of ‘scarcity of funds’ to evade completion of projects or delayed salary payments. Nigeria is crafting a story where the welfare of our people takes precedence, and financial accountability reigns supreme.”

    Regarding the ‘Eight-Point Agenda’ of the Tinubu Administration, the vice president said: “We have resolved to prioritise food security and ending poverty. We are prioritising economic growth and job creation. We are prioritising access to capital and improving security.

    “We are prioritising improving the playing field on which people and particularly companies like yours operate. We are also prioritising the rule of law and the fight against corruption. Each agenda cannot be fully implemented without your cooperation.”

    Earlier in his remarks, the president of the Chattered Institute of Bankers, Ken Opara said the event which has grown to become the largest gathering of banking and finance professionals in Africa, provides the platform for professionals to come together to drive the conversation on topical issues that are critical to the growth of the Nigerian economy.

    He praised the reform initiatives of President Bola Tinubu, noting that “the reform initiatives such as subsidy removal, unifying the foreign exchange regime, investing in infrastructure, promoting agriculture, supporting SMEs and tax reforms, among others, if well implemented will unlock the economic potentials of the country.”

    The chairman of the Body of Bank CEOs and Managing Director of Zenith Bank, Ebenezer Onyeagwu called for deliberate action from commercial banks and development banks in Nigeria to support small and medium-sized enterprises (SMEs) and promote economic growth.

    Onyeagwu argued that commercial banks should not be solely responsible for financing and supporting SMEs, as this would not lead to progress and development. He suggested that “development banks should also share the risk and support SMEs, as a collective effort is needed to grow these businesses”.

    The minister of Budget and Economic Planning, Abubakar Atiku Bagudu in his address said the government has resolved to make the annual budget plan-based and noted that the banking sector is well placed to contribute to national growth.

    In his goodwill message, the acting Governor of the Central Bank of Nigeria (CBN) Folashodun Adebisi Shonubi lamented that the banking industry is not contributing enough to the nation’s Gross Domestic Product (GDP)

    He stated: “When we look at economic contribution, we are fighting below our weight so can we promise them that instead of 3.6 percent we will be contributing a lot more than that and we will sit down and find what the drivers are that we can influence and we can do.”

  • Subsidy removal: Bauchi Speaker disburses N11m to constituents

    Subsidy removal: Bauchi Speaker disburses N11m to constituents

    To cushion the effects of the economic hardship occasioned by fuel subsidy removal, the Speaker of the Bauchi State House of Assembly, Abubakar Suleiman has disbursed the sum of N11,000,000 to his constituents In Ningi Local Government Area of Bauchi State.

    Speaking during the disbursement at the Peoples Democratic Party (PDP) secretariat in Ningi, the speaker said that he is deeply concerned about the current economic hardship being experienced in the Country due to the removal subsidy and increasing inflation.

    Abubakar reaffirmed his determination to always offer helping hands to people, especially in their time of need.

    Read Also; NSCDC arrest three suspected vandals, cable thieves

    According to him, his leadership ideology was to empower people and help the needy, hence the reason for his prompt intervention to help the people of Ningi Central Constituency who entrusted him to be their representative.

    He said the N11 m disbursed was contributions from party executives, political groups, and campaign organizations adding that each household will receive 10 thousand naira each.

    Abubakar, who regretted that he could not cover every indigene of the Constituency, however assured women and other groups that he would continue to come up with welfare and empowerment programs the so that majority of the citizens would benefit from them.

  • BREAKING: Subsidy removal palliatives: Fed govt releases only N2bn to state governors

    BREAKING: Subsidy removal palliatives: Fed govt releases only N2bn to state governors

    The federal government has only released N2 billion from the N5 billion it offered to each states as palliative to cushion the impact of subsidy removal.

    The reason for releasing N2 billion is to mitigate the obvious spike in inflation if N5 billion had been released.

    Read Also: Subsidy palliatives: Ondo beefs up security around warehouses

    Addressing journalists at his maiden press briefing in Abuja on Friday, the minister of finance and coordinating minister for the economy, Wale Edun, said the federal government was mindful of the consequences of its decisions, as a result, it opted to stagger the release of the palliative funds.

    Wale Edun said the source of the fund is “a blend of grant to and borrowing by the state governments”.

    Generally speaking, the finance minister said “the president is going to deliver a better life to Nigerians by encouraging investment that increases productivity that grows the economy and thereby creating jobs and reducing poverty”.

    Details shortly…

  • Subsidy palliatives: Ondo beefs up security around warehouses

    Subsidy palliatives: Ondo beefs up security around warehouses

    Ondo state government said adequate security has been provided around its warehouses where items to be distributed as palliatives to cushion the effects of fuel subsidy removal are kept.

    It said the warehouses were not looted and that the items would soon be distributed to vulnerable members of the society.

    The state commissioner for finance and chairman of the palliative strategy and implementation committee, Wale Akinterinwa, spoke when he led other members of the committee to inspect the food items and agricultural inputs.

    Akinterinwa said the state has received N2bn out of the N5bn the federal government was to disburse to the states.

    He disclosed that the state has received 5,700 bags of rice from the federal government but would be distributing about 12000 bags of rice.

    The finance commissioner said a special committee was set up made up of all spectrums of the society to avoid the distribution becoming a political party affair.

    He noted: “We are here to inspect foodstuff that we intend to give to the vulnerable masses. We have gone round warehouses to ensure the foodstuff are in good condition. We will share them very soon.

    “The federal government gave us 5700 bags of rice. The state has bought more than that. We will start sharing very soon. We put together a committee at the local government level. We have good representation that cuts across the spectrum of the society. We have gotten N2bn and we hope that they will give us the balance. They sent maize to us but we received little amount of maize and we hoped to get the balance.

    Read Also: Why we delayed distribution of palliatives, by Makinde

    “The distribution will not be a party affair. That is why we put up the committee. We have the CAN and Muslim representatives.

    “We will be distributing about 12000 bags of rice. We are also giving out packaged food items besides the rice. The packaged food consists of four different local food items.

    The inputs for farmers are ready. We have power tillers, pesticides, and tricycles to help move farm harvests to cities. We hope it will tackle the food crisis and bring down prices if the yields are good. We have supported the farmers to get certain things they need.”

  • Subsidy cut windfall: Govt saves N1.83tr in two months 

    Subsidy cut windfall: Govt saves N1.83tr in two months 

    • Savings to be used for projects
    • ‘No more borrowing’
    • Elumelu: govt’s bold decisions in Nigerians’ interest

    The Federal Government has saved N1.83 trillion less than three months after it stopped the payment of subsidy on petrol, The Nation has learnt.

    The savings were made from revenue that accrued into the federation account in June and July.

    A source within the Federation Account Allocation Committee (FAAC) confirmed to our reporter that the amount was saved in the federation account “first as a fall back (augmentation) for a rainy day”.

    The source said that N1, 051,946,000,000 was saved in from the N1.97 trillion revenue generated in June.  Additional N779,890,000,000 was saved from the N1.746 trillion revenue raked in last month.

    According to the source, the Minister of Finance and Coordinating Minister for the Economy (CME), Mr. Wale Edun, has briefed the heads of revenue generating agencies on what the government plans to do with the savings.

    The CME said the Bola Ahmed Tinubu administration a plans to save money to execute projects without relying on borrowing.

    On Sunday, President Tinubu told his hosts at the opening of the 63rd Nigerian Bar Association (NBA) annual conference that the country can no longer continue to serve national debts with 90 per cent of its revenue.

    Also at the inaugural Federal Executive Council (FEC) meeting yesterday, the President told his ministers that his administration will rather create a stable macroeconomic environment than borrowing more money to implement projects.

    Read Also: Tinubu appoints new board, management of NDDC

    He said Nigeria was no longer in a position to accumulate more debts.

    The CME has since communicated the President’s position to FAAC members and the revenue generating agencies.

    The N1.831 trillion saving from the FAAC revenue, the official said, is domiciled in the federation account with the Central Bank of Nigeria (CBN).

    It was learnt that the federal government has been able “to convince most FAAC members of the need to save from the revenue that will accrue to the Federation Account with the understanding that what will be shared amongst all the beneficiaries of the Federation Account will not go below a certain threshold”.

    “In the event that what is available for sharing in any particular month is below the agreed threshold, then FAAC will be at liberty to withdraw from the savings to augment for the month”, the source explained.

    It said the Federation Account was able to garner trillions of naira in two months following the government’s decision to stop subsidizing petrol.

    During last Wednesday’s inauguration of ministers in Abuja, Tinubu affirmed his unwavering dedication to ending the destructive pattern of heavily relying on loans to finance public spending.

    Acknowledged the hindrance of such reliance to prudent management of government’s limited revenue, the president said loan servicing obligations consume significant portions of these funds.

    His commitment,  he explained is to find alternative solutions to reduce borrowing for public spending and ensure a more sustainable fiscal plan for Nigeria.

    Briefing reporters at the State House after the maiden FEC meeting, Edun stated that the removal of petrol subsidy and exchange rate harmonisation does not signify any plans to obtain funds from local or foreign institutions through borrowing.

    Instead, the subsidy removal he said will be utilised to enhance government revenue and facilitate a favorable business climate for local and foreign investment across diverse sectors.

    Edun stated that following the removal of petrol subsidy, there has been a surge in revenue, and the government has put in place several assistance options to ease the impact of the decision in the short, medium, and long term.

    He emphasized the government’s commitment, led by the President to revive the economy from its current state.

    Elumelu: govt’s  bold decisions in Nigerians’ interest

    Yesterday, private sector operators hailed the President for his decisions on the country’s economy.

    Their position was conveyed by the Chairman of HEIRS Holdings and Transcorp Plc, Mr. Tony Elumelu, after a private meeting with President Tinubu at the Presidential Villa, Abuja.

    Elumelu acknowledged that the President had taken good decisions in the interest of the country, said the private sector had been encouraged by the steps taken so far.

    Tinubu, he noted, has so far taken such decisions in the interest of all Nigerians, especially women and the youths, saying that in the long run, Nigeria will benefit from it all, imploring citizens to be patient with the President.

    He said: “The private sector is encouraged with the bold decisions President Bola Ahmed Tinubu has taken and we hope that in the fullness of time, Nigerians will benefit from it because it’s all about the Nigerian people, it’s all about our youths, it’s all about making sure our women are involved and empowered.

    “It’s all about making sure our youths get jobs and I think Mr President has this at the back of his mind and I believe, as a private sector person, that the actions and the decisions the President is taking now will help our people in the long run.

    He appealed to Nigerians to be more patience with the President and the ongoing process, saying “a bit of patience, you know Rome was not built in a day”.

  • No delay      

    No delay      

    • State govts should expedite distribution of palliatives

    Following the announcement of fuel subsidy removal by President Bola Ahmed Tinubu on May 29, the pump price of fuel quadrupled, leading to astronomical rise in the cost of living. True, there had been a consensus among most Nigerians that the humongous corruption associated with the fuel subsidy could not be allowed to continue and that the over N7 trillion committed to subsidy annually was no longer sustainable or desirable in the light of government’s inability to fulfill its basic responsibilities, as well as the country’s ever growing indebtedness.

    Even then, hardly anyone foresaw the level of hardship which the removal of the subsidy would inflict on Nigerians. It is thus commendable that the federal and many state governments have made  provision of palliatives to ameliorate the degenerating level of poverty in the country priority. This is the only way to avert an undesirable social implosion in the near future.

    Read Also: Fuel subsidy removal: Activist seeks inclusion of students in palliatives

    To cushion the hardships occasioned by the fuel subsidy removal, the Federal Government two weeks ago announced the release of N5 billion cash to each of the 36 state governments for the procurement of 100,000 bags of rice, 40,000 bags of maize as well as fertilisers and other agricultural inputs to farmers. While 52 per cent of the N5 billion is given as grants to the states, the remaining 48 per cent will be paid back in installments over a period of 20 months by the states and local governments. The Federal Government had earlier made truckloads of rice available to the state governments from the strategic grains reserves for distribution to the people.

    It is understandable that these palliatives are only temporary measures to ease the burden of current hardships before long term policies to strengthen the economy  begin to make an impact. These include the recently announced substantial financial support for micro, small and medium enterprises, distribution of critical inputs to farmers to boost agricultural productivity, the envisaged tax reforms to improve the ease of doing business and enhance both domestic and foreign investment in the economy, the procurement of 3,000 buses powered by Compressed Natural Gas to ease the cost of public transportation, the imminent take-off of the students loan scheme and the ongoing negotiations with Labour towards a new national minimum wage that reflects current inflationary realities.

    Even as most Nigerians appreciate the palliatives being made available to offer succour for the most vulnerable Nigerians, the decision to route these through the state governments has been heavily criticised in many quarters. This is indicative of a huge trust deficit between the people and the state governments, as most people believe that the palliative items will not get to the targeted groups. Indeed, some state governments are already being accused of warehousing the items rather than immediately distributing them. As a matter of fact, some warehouses were recently looted in Adamawa State by angry residents who carted away palliative items.

    It is however too early to allege that the latest round of palliatives would not get to the beneficiaries as the state governments have just received the funds to procure the items. They need to put in place the necessary logistics for their distribution.

    However, it is important that the state governments too realise the need for a sense of urgency in procuring and getting the items to the people. They should remember the last #EndSARS demonstrations, during which angry citizens across the country attacked and looted warehouses where palliatives to ameliorate the pains of the COVID-19 pandemic were kept, rather than being distributed. Governors must be mindful of the need to avoid a recurrence of such a scenario. The governments should rebuild the confidence of their people in the integrity of government by ensuring utmost transparency and accountability in the distribution of the palliatives.

     In this regard, the social registers being compiled by the states to provide the database for palliatives distribution must be accurate and credible. Furthermore, governors must resist the temptation to limit the distribution of the palliatives to party members as the items are meant for all poor Nigerians and their distribution must not be tainted by political partisanship.

  • Subsidy removal: Borno, Adamawa, Yobe roll out palliatives

    Subsidy removal: Borno, Adamawa, Yobe roll out palliatives

    Borno, Adamawa and Yobe governments have embarked on measures to ameliorate the hardship on citizens caused by the removal of petrol subsidy.

    The News Agency of Nigeria (NAN) reports that citizens of the three states worst affected by insurgency in the Northeast have been experiencing hardship, which many said, is further worsened by the subsidy removal.

    In Borno and Yobe states, the distribution of palliatives to households has commenced, while in Adamawa, the committee constituted for the exercise is still working on modalities.

     Borno State Governor Babagana Zulum said during the launch of the palliatives distribution at Maisandari Ward of Maiduguri that his administration would sustain the support to the less-privileged and communities affected by insurgency throughout his tenure.

    Zulum said while the Federal Government palliatives would cater for 100,000 vulnerable households in the state, his administration would provide for additional 300,000 households to make a total of 400,000 households.

    Read Also: Fuel subsidy removal: Activist seeks inclusion of students in palliatives

     He explained that ”Borno’s case is peculiar as some areas have been devastated by the insurgency and returnees are yet to have full access to their farmlands, hence the need to continue supporting them.”

     The Chairman of Northeast Civil Society Forum, Amb. Ahmed Shehu, lauded the early distribution of palliatives by the Borno Government, particularly the involvement of CSOs in the committee, and urged other states to emulate Borno.

     He said:  “I am urging other states to also involve Civil Society Organisations in the palliative committees for transparency and accountability.”

     In Yobe, the Deputy Governor, who is the Chairman of the Palliatives Committee, Alhaji Idi Gubana, said distribution of palliatives had commenced, targeting 80,000 households in 17 local government areas.

     Gubana, who spoke through his Press Secretary, Mr Hussaini Mai-Suleh, said the distribution had been launched in the three senatorial zones, with that of Zone A in Damaturu, Zone B in Fune, and Zone C in Jakusko.

     In Adamawa, the distribution of palliatives is yet to commence, but the state government had constituted a distribution committee under the Chairmanship of the Secretary to the State Government, Alhaji Auwal Tukur.

    The committee was inaugurated on Wednesday by the Deputy Governor, Prof. Kaleptapwa Farauta, and members were tasked to ensure that the palliatives reached the intended persons.

     “Work out necessary modalities for the transportation of palliatives, both food and non-food items, from the source to the distribution points.

     “Monitor and liaise with relevant stakeholders or community agents and ensure equitable distribution of the palliatives to the intended beneficiaries,” Farauta tasked members of the committee.

     Some Internally Displaced Persons (IDPs) at Damare camp in Girei Local Government Area of Adamawa, urged the state government not to forget displaced persons in the exercise.

     The Women Leader in the camp, Ladi Paul, said about 227 households were in serious need of food support in the camp.

     “I am appealing to the government to come to our aid; we were affected by flood in 2022 and the removal of fuel subsidy has further compounded our situation in the camp,” she said.

     Some residents of Yola also lamented the delay in the distribution of the palliatives, adding that the recent looting of food items in government stores in the states by some youths should serve as a wake-up call.

  • Fuel subsidy removal: Activist seeks inclusion of students in palliatives

    Fuel subsidy removal: Activist seeks inclusion of students in palliatives

    Pro- democracy activist, Mike Msuaan has called for the inclusion of students in palliatives following fuel subsidy removal.

    Msuaan noted that the palliatives would cushion the effects of fuel subsidy removal on students across the country.

    He said this in a statement yesterday when he was conferred with a service award as a True Nationalist in Abuja by the leadership of the National Association of Nigerian Students (NANS).

    He hailed the leadership of NANS for their display of understanding with the Federal Government on the decision to remove fuel subsidy.

    Msuaan said the current NANS leadership has been matured and decent in their struggle.

    “They exhibited the same when the government removed subsidy. Instead of joining enemies of the government to protest and destabilise the government, NANS opted for robust engagement with the government for the good of the Nigerian students,” the statement said.

    He said this showed stability, capacity and dependability.

    Expressing gratitude to the leadership of NANS for finding him worthy for the exalted award, he pledged his support for any progressive and meaningful endeavour embarked upon by NANS.

    Presenting the award on behalf of the National President in Abuja , the Senate President, NANS, Nnalue Attah said, Msuaan remained an icon and cynosure of NANS.

    Attah explained that they visited Msuaan’s office to present the award which was originally slated for presentation to him and other Nigerians at a one day education summit with the Theme, Building a strong Advocacy for increased investment in higher education which held at the Ahmadu Bello University Zaria (ABU).

  • Subsidy relief: Boat builders make case

    Subsidy relief: Boat builders make case

    Marine Craft Builders Association of Nigeria (Boat builders) has advocated inclusion of riverine dwellers in Federal Government’s subsidy removal palliatives plan

    Director General, Clem Ifezue,  Board of Trustees (BoT) Chair, Frank Orhenere, Kelly Ekeremor and Solomon Beleme in a statement in Port Harcourt, Rivers State, said people living in coastal areas need assistance too.

    The request followed the 3000 buses    okayed by President Bola Tinubu to ease  transportation  challenges.

    Read Also: ‘Nigerians must be patient with Tinubu’

     Ifezue  gave the length of waterways in Nigeria to be over 10,000 kilometres, with over 50 million persons contributing  over N300 million to the economy.

    He said: “The economic activities on this stretch are over 300 million daily. And that is a sector you cannot ignore.  You have over 80 marine boat builders in Nigeria.

    “We have gone through the palliatives proposal and seen what it (government) has in stock for transportation. Government has made pronouncement for 3,000 buses. We want to bring attention of government to it again to see how the riverine areas can be accommodated in their plans…’’