The federal government has released N2 billion out of the N5 billion it offered to each state as palliatives following the removal of petrol subsidy.
The government said the decision was made to prevent a significant increase in inflation.
The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, explained this during a press briefing in Abuja on September 1.
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Edun revealed that the government was aware of the potential impact of inflation and has therefore chosen to stagger the release of the funds.
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He mentioned that the fund is “a blend of grants to and borrowing by the state governments,” adding that “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.”
The N5 billion palliative was announced by the governor of Borno State, Babagana Zulum, during a National Economic Council, NEC meeting presided by Vice President Kashim Shettima in Abuja on Thursday.
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