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REVEALED: FG’s N5bn subsidy removal palliative to states is a loan

 


The relief aid given to the states by the federal government to cushion the effects of the removal of the petrol subsidy is a loan.

 

Earlier, the federal government announced a N5 billion relief package for each state of the federation, including the federal capital territory (FCT).

 

Babagana Zulum, governor of Borno, who spoke on Thursday at the end of the national economic council (NEC) meeting presided over by Vice President Kashim Shettima, said the palliative would enable state governments to procure 100,000 bags of rice, 40,000 bags of maize and fertilizers to cushion the effect of food shortage across the country.

 

However, in a memo to governors entitled “Re: Distribution of Palliatives – Terms of FG Facility”, Asishana Okauru, director-general of Nigeria Governors Forum (NGF), said states might opt out of the offer and return a sum of N2 billion already given to them.

 

 “I have been directed by the Chairman, H.E. AbdulRahman AbdulRazaq to forward the terms of the facility as follows,” Okauru said in the memo.

 

“Facility size: N4,000,000,000.00

Loan (48%): N1,920,000,000.00

FGN Grant: (52%)

N2,080,000,000.00 Beneficiary each state government

Tenure: 20 months

Interest Rate: Nil

Moratorium: Three months

Repayment Mode: Monthly

Repayment Amount: N120,000,000.00

Security Irrevocable Standing Payment Order (ISPO)

 

“Your excellency is invited to note that this offer is optional and states that do not wish to participate may opt-out and refund the N2 billion already disbursed to them.”

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1 comment

  1. Whatever its be informed that only affordable fuel price will ensure relief to the masses. Delve into your ocean of ideas and find a way to reduce the price please Baba tinubu

    ReplyDelete

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