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, TheCable can report.

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.”

https://www.thecable.ng/revealed-fgs-n5bn-subsidy-removal-palliative-to-states-is-a-loan

I have said it before & I will continue to say it, palliative is not the way forward.

Tackle the issue from the core. Pallatives are window dressings & only enhance corruption.

When are we going to start holding public officials responsible for their obvious failings?

With 2bn, Nigeria can get a good surveillance tactical drone. With 20bn, we can get 10 of those drones to enhance our border security against smuggling of pms...

Instead, the government has handed over 150bn to people who would simply loot the funds & we are back to square one...

Address issues at the source, don't paper up cracks.

The manner of the subsidy removal is fraudulent, thoughtless & a sign of government's failure to be responsible to its duties.

Two key reasons for removing fuel subsidy are smuggling & the corruption by a few.

Now, what the government should have done first, in my opinion, are:

1. Do more to secure the borders. Invest in technology tracking & surveillance systems. Sanction security officials through whose sectors fuel is smuggled out.

2. Go after the cabal in the fuel subsidy sector. The private & public characters involved must made to answer for thier alleged crimes & the proceeds confisticated. They cannot be allowed to go scot-free with thier loot & Nigerians made to suffer.

Thier cases should be fast tracked.

3. Increase the price of fuel to 250-300 band. This will take a bit of pressure off government in the interim pending when it can fully sanitise the fuel subsidy regime. This price will still be affordable for majority of Nigerians without the need of providing palliative.

4. Review downwards associated costs/charges/taxes that add to the price of fuel in Nigeria. Tackle security bottlenecks & extortionists.

5. Immediately undertake a priority revamp of the refineries to get local production up to at least 70% in the first instance.

6. Institute a clear policy to encourage modular refineries & monitor thier development.

7. The confiscated properties of fuel subsidy bandits should be invested in maintaining the refineries, supporting modular refineries, investing in tracking technology for smuggled fuel & paying for subsidies (if any).

That subsidy should go is not the issue, but the process of its removal must be transparent, fair & well-thought-out.

Who trust am before?

They Saved over 1 trillion from fuel subsidy removal.
Yet they are borrowing loan to share amongst the governors to loot.

If its about sharing money, why not use the money and pay for subsidy so that it will reach everybody instead of few political thieves?

Tinubu supporters are as dumb as Islamic terrorists that believes in 72 virgins.

ivandragon:
I have said it before & I will continue to say it, palliative is not the way forward.

Tackle the issue from the core. Pallatives are window dressings & only enhance corruption.

When are we going to start holding public officials responsible for their obvious failings?

The Federal Government have talked about what they will do, but it seems people like you have not been listening.

What's your State Governor also doing? Your State Governor received Five Billion Naira, you should also be concern about how he will be spending it. The President and FG should not be the only Public Officials we should always tackle everytime.

And Nigerians are not ready to start holding Public Officials responsible for their failing. Even if you prove to Nigeria the Candidate they are supporting failed to achieve any tangible thing while he was serving in a public position, it won't stop Nigerians from defending such politicians.

Parachoko:
The Federal Government have talked about what they will do, but it seems people like you have not been listening.

What's your State Governor also doing? Your State Governor received Five Billion Naira, you should also be concern about how he will be spending it. The President and FG should not be the only Public Officials we should always tackle everytime.

And Nigerians are not ready to start holding Public Officials responsible for their failing. Even if you prove to Nigeria the Candidate they are supporting failed to achieve any tangible thing while he was serving in a public position, it won't stop Nigerians from defending such politicians.

I don't know why some of you get antsy when people question bad policies of government.

You say Nigerians are not ready to hold Public officers responsible & it is the same you that is asking why some of us are questioning Public office holders.

The bottom line is that if the FG has lived up to its responsibilities, there won't be need for pallatives in the first instance & the question of thieving governors getting their hands on 5bn would not arise.

SenatePresdo:
They Saved over 1 trillion from fuel subsidy removal.
Yet they are borrowing loan to share amongst the governors to loot.

If its about sharing money, why not use the money and pay for subsidy so that it will reach everybody instead of few political thieves?

Tinubu supporters are as dumb as Islamic terrorists that believes in 72 virgins.

One cannot even begin to imagine.

They seem to all comment without the benefit of intellect.

Obvious ways to address issues would be before them, but because their thieving leaders have chosen an alternate path that simply leads to more looting, they will hail & praise.

When government changes step, they too will change mouth.

Parachoko:
The Federal Government have talked about what they will do, but it seems people like you have not been listening.

What's your State Governor also doing? Your State Governor received Five Billion Naira, you should also be concern about how he will be spending it. The President and FG should not be the only Public Officials we should always tackle everytime.

And Nigerians are not ready to start holding Public Officials responsible for their failing. Even if you prove to Nigeria the Candidate they are supporting failed to achieve any tangible thing while he was serving in a public position, it won't stop Nigerians from defending such politicians.

It's over two weeks that the president announced palliatives in a nationwide broadcast.
Where are the promises he made?
Next thing we're hearing is 5bn to states to buy rice and maize.
How will this develop our economy and solve our perennial problems.
You were the one shouting suffer now to enjoy later when subsidy was first removed.
I hope you're enjoying rice and maize now.
Rubbish

There is nothing hidden under the sun for long

Kukutente23:

It's over two weeks that the president announced palliatives in a nationwide broadcast.
Where are the promises he made?

He has started fulfilling his promise. The Five Billion Naira that was distributed to each State Governor is part of the palliatives.

Go and Ask Your State Governor how he will spend it.

Borrowing only for the money to be looted by the state governors is never a wise economic decision.
Mortgaging the lean resources of a country by borrowing to fund palliative? This government is mostly clueless and incompetent. It must just be booted out.

Parachoko:
He has started fulfilling his promise. The Five Billion Naira that was distributed to each State Governor is part of the palliatives.

Go and Ask Your State Governor how he will spend it.

Stop telling lies to defend govt who is punishing the poor for their corruption.
There was no 5bn to states in his broadcast. Moreso the 5bn is even optional loan, which means a State can opt to not partake in it.
What was in the broadcast was to release grains from strategic reserves. Where is that?
Where are the CNG buses?
Where are the 50,000 to 1300 nanobusinesses?
You're simply fooling yourself by hiding under State govs. Were State govs consulted before subsidy was removed? Why should they be held to account for a problem they didn't create?
After politicians have created problems, they send minions like you to gaslight the populace into the deception that their problem is from somewhere else.
When he knew he had no alternative on ground, why did he remove subsidy? It shows a leader who is not in tune with the realities of his followers!!

We need real solutions and not all these windows dressing

Kukutente23:

Stop telling lies to defend govt who is punishing the poor for their corruption.
There was no 5bn to states in his broadcast. !

I'm not interested in Foolish talks please.


You asked what the Government is doing and I told you. Government have been saying what they will do and have been taken the steps.

There's a plan to Cultivate Rice, Maize and Cassava on 250000 hectares of land, do that mean everything will be achieve in just 2-4 weeks?

Ask your State Governor what he will be doing with the Five Billion Naira that got to him.

Parachoko:
I'm not interested in Foolish talks please.


You asked what the Government is doing and I told you. Government have been saying what they will do and have been taken the steps.

There's a plan to Cultivate Rice, Maize and Cassava on 250000 hectares of land, do that mean everything will be achieve in just 2-4 weeks?

Ask your State Governor what he will be doing with the Five Billion Naira that got to him.

You're the one who is talking foolishly.

Answer straight if the govs were carried along in the removal of subsidy. So why are you shifting attention to them?

FG has been making different promises since they removed subsidy on May 29th. It is 3 months since and they are still taking steps and making promises.

Are you even aware it takes 3 months to grow rice in Nigeria and this is the best season to grow rice and maize? Is your govt planning to grow rice and maize in the dry season?

You're just saying nonsense. Total nonsense. The 5bn is a loan. A gov can choose to opt out. It also shows how clueless and haphazard the FG is that they are giving govs 5bn to buy rice and maize. Are Nigerians chickens that only eat rice and maize to survive?

Responsible governance Start from local government, what is the contribution of local government and state governors to tackle the impending problem on our nation. We can't continue to blame federal government for everything. Most of this governor know nothing about governance. Most of them join politics to secure their illegal wealth. Ogun state governor was the former chairman of independent marketers that finished this country. Can anyone point out the Administrative experience of governor Adeleke or hope of imo. Most of them are opportunist.

Kukutente23:

Your State have a commissioner of Agriculture, how many Tons of Rice have your state been able to produce in the last 3 month? Or nah Tulumbu you want to com and farm for you too?

Well, I get your point. An Hungry Man is an Angry Man.

Go and tell your Governor to submit your State Register so that money go enter your account.

https://www.nairaland.com/7807234/world-bank-800m-no-disbursement#125178753

MissLeslie:
Responsible governance Start from local government, what is the contribution of local government and state governors to tackle the impending problem on our nation. We can't continue to blame federal government for everything. Most of this governor know nothing about governance. Most of them join politics to secure their illegal wealth. Ogun state governor was the former chairman of independent marketers that finished this country. Can anyone point out the Administrative experience of governor Adeleke or hope of imo. Most of them are opportunist.

Miss, in this matter, the searchlight should be on FG. They are surely looking for a means to absolve themselves off responsibility for a problem they solely created.
1. FG owns customs that can't man the borders thus allowing smuggling of petrol
2. FG it was who removed subsidy and devalued naira in one fell swoop
3. FG chose to save 1trn from revenue. Meaning
overall revenue to states has not changed
despite more money from the twin evils in 2 above
4. Same FG is now offering states unsolicited
loans to buy rice and maize. They are doing this
knowing fully well they can't hold the states to
account in any way or form.
Now i ask. If FG can't hold states to account, is it the hapless and helpless citizens that will? Call for protest now and you get labelled enemy of state.
The FG is clueless as it is incompetent. They need to know nobody buys their nonsense

Instead of giving money to state governments buy buses and share to states to cushion the effects of high cost in transportation, remove all the touts on the federal and state highways collect produce including police and soldiers, a truck of perishable foods from Jos to ph pays as high as 300 -400k to unscrupulous elements including police and army which is illegal , causing untold hardship on Nigerians.

Parachoko:


Your State have a commissioner of Agriculture, how many Tons of Rice have your state been able to produce in the last 3 month? Or nah Tulumbu you want to com and farm for you too?

Well, I get your point. An Hungry Man is an Angry Man.

Go and tell your Governor to submit your State Register so that money go enter your account.

https://www.nairaland.com/7807234/world-bank-800m-no-disbursement#125178753

Oga you're still failing to make any sense.

The FG it was who promised to farm 250,000 hectares not the states.

Why are you asking the states for fulfilment of a promise the FG made? Are you OK at all? Does one work for the other? States are autonomous from the FG in case you don't know and no one ever sought to assert that autonomy more than the present head of the FG when he was gov.

It is another pointer to the incompetence and wasteful habit of the FG that after spending billions on National identity and a national social register, they are still running back to the states to come up with a register.

If the FG with all the humongous resources available to it can be so useless and inefficient, may I ask why exactly you're expecting states to perform better if not that you're an insincere hatchet hand?

Kukutente23:

Are Nigerians chickens that only eat rice and maize to survive?

Yes. Or we would obidiently not have voted for corn