Ndubuisi Francis in Abuja
The federal government has only released N2 billion of the N5 billion approved for the 36 states of the federation and the Federal Capital Territory (FCT) to cushion the impact of subsidy removal.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who disclosed this at a press conference in Abuja Friday, said the decision not to release the entire N5 billion to each of the states was to avert the obvious inflationary spike.
He explained that the N5 billion was a blend of grant from the federal government and loan to the states.
The National Economic Council (NEC) recently announced that the federal government had approved N5 billion grant to be given to each of the 36 states of the federation for the procurement of grains as well as five trucks of rice to each state as palliatives to cushion the effect of fuel subsidy removal.