FG’s N5bn To States Loan or Palliative, NLC Queries

The President of the Nigeria Labour Congress (NLC), Joe Ajaero expressed his concern over the adequacy of the N5 billion approved for each state and the Federal Capital Territory (FCT) to mitigate the impact of fuel subsidy removal.

Ajaero pointed out that when calculated, the amount would not even reach N1,500 per person.

Furthermore, he highlighted the lack of clarity regarding whether or not the money was a loan or a palliative for the states or Nigerians.

He said:
“But whichever might be the case, let’s assume that it is palliative; you would agree that it is difficult to feel the impact of such an amount at a time like this.

“The [National] Bureau of Statistics (NBS) has come out to say that over 133 million Nigerians are multidimensionally poor. You start to wonder about the impact of N185 billion to 133 million people by their admittance.

READ ALSO: N185bn Subsidy Palliative Less Than A Cup of Rice Per Nigerian –  NLC

“And from the time this report was released and now, in fact, the first increase in the pump price of petroleum products and the last one, moved a lot of people from the borderline to a very high level of poverty.

“Now if you calculate it, you will discover that this will not translate to N1,500 per person and you ask: is that the impact? Is that really what we want to achieve? Let’s assume it’s a loan. What is really going to happen? Is it garbage in, garbage out?

“If it is N5 billion, I think the organised labour would want anybody to do the calculation and tell us how it is going to impact Nigerians on what is happening currently. If it is a loan then it is too bad.”

During the National Economic Council (NEC) meeting on Thursday, Governor Babagana Zulum announced that part of the funds from the Federal Government would be used by state governors to procure 100,000 bags of rice, 40,000 bags of maize, and fertilizers.

Zulum explained that 52 per cent of the funds were given to the state governments as grants, while the remaining 48 per cent were provided as loans.