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3 MONTHS AFTER… States Defend N180bn Palliatives Amid Ongoing Hardship

The persistent economic challenges faced by Nigerians following the removal of the fuel subsidy persist despite the N180 billion allocated by the federal government to states for the distribution of palliatives to indigent individuals nationwide. Announced on August 17, 2023, the federal government earmarked N5 billion for each of the 36 states and the Federal Capital Territory (FCT).

While 52 percent of the funds were granted to states as outright grants, the remaining 48 percent, constituting part of the N5 billion, is expected to be repaid to the Central Bank of Nigeria (CBN) by states and local government areas within 20 months. 

The palliative initiative aimed to mitigate the impact of fuel subsidy removal on citizens.

However, three months later, as states grapple with justifying the distribution of funds, complaints have emerged about the mismanagement of intervention measures. Notably, residents of Imo State voiced dissatisfaction with the distribution process, citing uncoordinated and non-transparent practices. 

Beneficiaries in various states, including Akwa Ibom, Rivers, Cross River, and Niger, have reported inadequate and insufficient quantities of rice provided.

In Imo State, residents received meager portions of rice, triggering frustration among the less privileged. 

Critics called on Governor Hope Uzodinma to emulate states with successful palliative distribution models. In Akwa Ibom, protests erupted after an initial distribution of 40 bags per village across 2,272 villages.

Similarly, residents of Rivers State, particularly those in rural areas, reported minimal or no assistance from the palliatives. 

In Cross River, beneficiaries expressed discontent over the meager quantity of rice provided. 

Niger State residents, despite the establishment of an all-inclusive committee for distribution, received only modest measures of rice, Indomie, and spaghetti.

Conversely, Borno State showcased a more positive outcome, with the distribution of palliatives targeting 400,000 households since July. 

The focus was on communities most affected by insurgency. 

Delta State allocated N10 billion for social investment to fund palliatives for various groups, including the less privileged, disabled individuals, widows, and more.

Despite the palliative efforts, the promised N275 billion loans for the manufacturing and MSMEs sectors, aimed at revitalizing the economy, are yet to be disbursed. 

President Bola Tinubu had approved the release of the funds in August, targeting the strengthening of the manufacturing sector and the creation of sustainable economic growth. 

The delay is attributed to the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) still collecting data on qualified enterprises.

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