**National Economic Council Takes Action to Address High Cost of Living**
The National Economic Council (NEC) has expressed concern over the rising cost of food and transportation in Nigeria and has taken steps to address the issue. In response, the NEC has approved a N5 billion grant for each of the 36 states in the federation to procure grains. Additionally, each state will receive five trucks of rice as palliatives to mitigate the impact of fuel subsidy removal.
The decision was made during a NEC meeting chaired by Vice President Kashim Shettima and attended by state governors. Governor Babagana Zulum of Borno State, who briefed reporters after the meeting, explained that the measures were temporary solutions to the high cost of living caused by the removal of fuel subsidies. The federal government has released five trucks of rice to each state to help ease the situation.
Governor Zulum also disclosed that states are required to purchase 100,000 bags of rice and beans, among other items, using the approved funds. He highlighted the distribution formula, stating that 52% of the money will be given to states as grants, while the remaining 48% will be repaid to the Central Bank of Nigeria (CBN) by the states and local government areas over a 20-month period.
Furthermore, the NEC directed the National Emergency Management Agency (NEMA) to distribute food items to states bordering Niger Republic due to political instability in that country. The aim is to assist communities affected by the recent instability.
While these measures are aimed at providing short-term relief, the NEC acknowledged the need for more sustainable solutions. The council emphasized the importance of investing in medium and long-term initiatives, particularly in commercial and irrigated agriculture, to ensure the availability of food and essential supplies in Nigeria.
As the country grapples with economic challenges, the NEC’s decisions reflect a concerted effort to address the immediate impact of subsidy removal on the cost of living and to implement strategies for long-term stability.
