Borno State Governor, Babagana Zulum has said a chunk of the N180bn palliative from the federal government to states is loan.
Zulum on Thursday at the end of the 135th National Economic Council meeting presided over by Vice President Kashim Shettima in Abuja, said 35 states and the Federal Capital Territory are to receive N5bn each to enable the state governments to procure 100,000 bags of rice, 40,000 bags of maize and fertilizers to cushion the effect of food shortage across the country.
Throwing more light on the money, the governor said 52 percent of it is grant while the remaining 48 percent is a loan payable by instalment within a year and eight months.
According to him, “NEC met today and expressed serious concerns as regards increasing cost of food items, increasing cost of transportation amongst others as a result of subsidy removal. In order to cushion the effect of subsidy removal, the federal government released five trucks of rice to each state last week.
“Furthermore, in order to cushion the effect of food shortages across the country, the Federal Government has approved the sum of N5bn to be given to each state for the procurement of 100,000 bags of rice, 40,000 bags of maize, and fertilizers.
“This funding has to be shared with a formula as follows: 52 percent of this money is given to states as grants, while 48 per cent of the N5bn is to be paid back on an installment basis within a period of 20 months to the CBN by the states and the local government areas in Nigeria.
“The council commended the efforts of the Federal Government under the leadership of President Tinubu as well as the CBN. We have also commended the efforts of NEMA in cushioning the effects of the subsidy removal.
“Council has taken bold decisions in order to ensure speedy release of grains and other items in order to cushion the effects of subsidy removal on the less privileged in the society.’’
