The federal government would give N5,000 to 10 million households for six months as a make-up for the removal of gasoline subsidies in June.
According to the Daily Trust, the amount is N50 billion each month and reaches N300 billion with a $800 million (N371.6 billion at CBN N464/$1 rate) World Bank loan to complete the project.
Zainab Ahmed, Nigeria’s Minister of Finance, Budget, and National Planning, addressed this yesterday at a Nigerian briefing on the sidelines of the World Bank/International Monetary Fund spring meetings in Washington, DC.
Zainab also stated that the $800 million was negotiated and agreed by the Federal Executive Council, and that it is now approaching parliament for approval.
She said: “Once the parliament approves it, we roll. We have also been doing preparatory work side by side along with the approval process. And that includes the building of the social register, which will be used for the electronic transfers of the funds.
“We needed to have this ready because when the government eventually removes the fuel subsidy, there will be an immediate transport palliative that will be provided to the most vulnerable members of our society who have been identified, registered, and now contained in our national social register,” she noted.
The endeavor, according to the minister, is being spearheaded by the ministry of humanitarian affairs, disaster management, and social development. “They developed that register with the support of the World Bank. The register has about 10 million households, equivalent to 50 million Nigerians.”
Zainab added that the initial plan is to distribute N5,000 cash transfers every home per month for six months. “So, whether this is enough is an assessment that we are undertaking with the transition team. If it’s not enough, the country has to raise additional resources to be able to cover more people, extend the period or increase the amount; whichever is finally negotiated upon.
“When the subsidy is removed, there would be additional revenue that would now accrue to the Federation account.”
In terms of how the palliative will affect the transportation sector, she stated that it will be considered if some of the support will be sent directly to the transportation sector, but no decision has been made.
Zainab also stated that the withdrawal of subsidies would cause inflation to rise, but then moderate. “Anywhere in the world where you remove any kind of subsidy, it has that effect. That is why that initial fund is necessary, so that you are deploying it quickly and reducing the impact on the lives of the most vulnerable people in our society.”
Obviously, for me i refuse this offer.
Because if it is to remove subsidy in Gas the amount would cost more than #5000 before the month can come to an end.
Now that Gas is in the price of almost #850 we may be buy it letter #1000 or an above, then tell me what is the relief in it. Sincerely speaking i disagree with this decision. 👽👽