The Federal Government has distributed the sum of N2 billion to each State of the Federation and the Federal Capital Territory (FCT) as part of a N5 billion palliative package aimed at mitigating the effects of petrol subsidy removal.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this announcement during a press briefing. He clarified that this disbursement was a combination of grants and borrowing provided by the federal government to the 36 states and the FCT.
Edun emphasized that this funding was separate from the proposed $800 million World Bank loan, which was intended for a similar purpose.
The Minister further explained that the Federal Government chose to withhold the remaining N3 billion to prevent a sudden spike in inflation figures if all the funds were released at once.
Edun outlined the administration’s economic plan, which focuses on increasing revenue, efficient debt management, and the automation of revenue collection processes to address leaks and create a favorable environment for both local and foreign investors. The goal is to stimulate job creation and boost the overall economy.
He stressed the importance of not overrelying on borrowing to fund the national budget, highlighting the intention to generate revenue through improved oil production, attract foreign investors, and encourage local businesses to flourish. The government aims to strike a balance between fiscal sustainability and economic growth.
