Posted by Amarachi on Fri 01st Sep, 2023 - tori.ng
The reason for releasing N2 billion is to mitigate the obvious spike in inflation if N5 billion had been released.
President Bola Tinubu
The Tinubu-led federal government has released only N2 billion from the N5 billion it offered to each state as palliative to cushion the hardship faced as a result of the fuel subsidy removal.
The reason for releasing N2 billion is to mitigate the obvious spike in inflation if N5 billion had been released.
Addressing journalists at his maiden press briefing in Abuja on Friday, the minister of finance and coordinating minister for the economy, Wale Edun, said the federal government was mindful of the consequences of its decisions, as a result, it opted to stagger the release of the palliative funds.
Generally speaking, the finance minister said “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 source of the fund is “a blend of grant to and borrowing by the state governments”.