The federal government has approved the disbursement of N5 billion to each state, local government councils and the FCT to cushion the effects of the petrol subsidy removal.

Governor Babagana Zulum of Borno said this at the end of the National Economic Council (NEC) meeting on Thursday in Abuja.

He said the fund was for purchasing 100,000 bags of rice, 40,000 bags of maize and fertilisers.

He said the funds were based on 52 per cent grants and 48 per cent as loans to be repaid to the Central Bank of Nigeria (CBN) within 20 months by the states and local councils.

He said the council commenced President Bola Tinubu and the CBN for the various efforts to reduce the impact of the subsidy removal on citizens.

Mr Zulum also said the federal government had sent food items to states bordering the Niger Republic to mitigate the influx of refugees coming into the states.

He said the states were also given five trucks of rice each by the federal government last week for distribution to vulnerable Nigerians in their domain.

“Furthermore, the council has noted the package that was announced by the president in order to cushion the effect of subsidy removal, amounting to about N500 billion.

“This fund has to be distributed to the following sectors MSMEs, industrial sector; about N125 billion will go to cash transfers, agricultural sector as well as gas expansion for buses,” Mr Zulum said.

He added, “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.”

The governor said the states 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 the council recognised that these interventions were short-term solutions, adding that long-lasting solutions were being worked out.

Governor Yahaya Bello of Kogi said that the NEC discussed the impact of the 2022 flood on states and what needed to be done to victims.

He said the NEC urged the federal government to immediately dispatch relief materials to the state flood victims.

He said that the delay in the disbursement of relief was due to some states that had yet to respond to requests to provide data on the flood situation in their areas.

Governor Seyi Makinde also said the NEC observed a minute silence for the officers and men of the armed forces killed in a helicopter crash in Niger State.

He said the council also advised the government to take immediate actions and policies to stabilise the economy, lower the unemployment rate and improve investment flow to the country.

(NAN)