N500bn subsidy palliative: FG to distribute N8,000 monthly to 12m households
…Approves distribution of 500,000 hectares, fertilisers, grains to farmers
…Reps approve Tinubu’s N500bn request
…Tinubu seeks Senate approval for $800m World Bank loan
By Mathew Ibiyemi and Moses Adeniyi
Following the adverse effects of the removal of subsidy on Premium Motor Spirit (PMS), Nigerian NewsDirect has gathered that the proposed palliative by President Tinubu will impact close to 12 million households in the country.
Recall President Tinubu had on Wednesday sought the approval of the National Assembly the sum of N500billion for palliative measures.
This move follows several calls for palliative measures to be put in place by organisations such as the United Nations, Lagos Chambers of Commerce and Industry (LCCI), Nigeria Labour Congress (NLC) and other stakeholders to President Tinubu.
Based on the amount proposed for the palliative, 12 million households have been enlisted to get N8,000 over a period of six months.
Giving further details of the palliative measures, Tinubu according to a letter to the House of Representatives read by the Speaker, Tajudeen Abbas during plenary on Thursday, said the palliative was designed to enable indigent and vulnerable Nigerian people to cope with the cost of meeting basic needs.
The letter is premised on a request for an approval of additional financing for the national social safety net programme scaled up by the National Assembly, with the President stating the palliative would have a multiplier effect on about 60 million individuals.
To ascertain the credibility of the process, Tinubu said digital transfers would be made directly to beneficiaries’ accounts.
Reps approve amendment, N500bn request
Meanwhile, the House of Representatives on Thursday approved the request of President Tinubu for an amendment to the 2022 Appropriation Act, to accommodate the request for N500 billion for palliatives to Nigerians in order to cushion the hardship informed by subsidy removal.
The amendment which passed the first, second, and third readings during plenary on Wednesday, saw the House on Thursday approving the President’s request after deliberation by members of the lower chamber.
Recall NewsDirect had reported that Speaker Abass noted that the request of the President would be deliberated upon yesterday in line with the President’s plea for speedy consideration.
The President demanded a speedy consideration of the request, sought the amendment of the 2022 N819,536,937,813 Supplementary Appropriation Act to accommodate the funds.
The immediate past president Muhammadu Buhari had introduced the supplementary budget in 2022 for capital projects due to the impact of the floods on farmlands and road infrastructure.
December 2022, the National Assembly passed a supplementary budget of N819 billion for the 2022 fiscal year. It also extended the implementation of the 2022 budget till March 31, 2023.
In May 2023, the National Assembly further passed the amendment to the 2022 supplementary budget to extend the implementation of the capital components to December 2023.
Tinubu seeks Senate approval for $800m World Bank loan
President Tinubu has also written the National Assembly seeking approval of the Senate for a $800 million palliative loan from the World Bank.
“You may also wish to know that the purpose of the facility is to expand coverage of shock-responsive safety net support for all and vulnerable Nigerians and the cost of meeting basic needs,” Tinubu said in the letter.
The President added that, “Under the conditional cash transfer window of the programme, the Federal Government of Nigeria will transfer the sum of N8,000 a month to 12 million poor and low-income households for a period of six months with a multiplying effect on about 60 million individuals.”
FG approves distribution of 500,000 hectares, fertilisers, grains to farmers
Special Adviser to the President on Special Duties, Communications and Strategy, Dele Alake, while briefing State House correspondents after consultations with key stakeholders in the agricultural sector at the Presidential Villa, Abuja has revealed the directive of the President for an immediate release of fertilizers and grains to farmers and households to mitigate the effects of the subsidy removal.
“As a hands-on leader who follows developments across the country every day, Mr. President is not unmindful of the rising cost of food and how it affects the citizens. While availability is not a problem, affordability has been a major issue to many Nigerians in all parts of the country. This has led a significant drop in demand thereby undermining the viability of the entire agriculture and food value chain,” He said.
According to him, “We will immediately release fertilizers and grains to farmers and households to mitigate the effects of the subsidy removal.
“There will be an organic synergy between the Ministry of Agriculture and the use of water resources to ensure adequate irrigation of farmlands and to guarantee that food is available all years round.
“As a country, Mr. President has made it clear that we are no longer comfortable with seasonal farming. We can no longer afford to have farming downtime.”
The Presidential spokesman further explained that the Federal Government will partner with states to create ranches in those that are willing to avail lands.
He said the ranches will have sections dedicated as grazing reserves.
According to him, “We will establish ranches in collaboration with state government and the federal government will pay for the land.”
Alake explained that the government at the centre will activate land banks nationwide, which currently stand at 500,000 hectares mapped “to increase the availability of arable land for farming which will immediately impact food output.”
This is as the Central Bank has advised middlemen withholding grains to release supplies at their disposal as prices are likely to fall when the government begins to distribute grains.c
Alake was accompanied to the press briefing by the Special to the President on Revenue, Zacch Adedeji, Special Adviser on Industry, Trade and Investment, John Uwajimogu and the acting Comptroller General of Nigeria Customs Service, NCS, Wale Adeniyi among others.
“As with most emergencies, there are immediate, medium- and long-term interventions and solutions.
“In the immediate term, we intend to deploy some savings from the fuel subsidy removal into the Agricultural sector focusing on revamping the agricultural sector.
“In an earlier meeting with Agriculture Stakeholders (today), we drafted a memorandum of partnership between the government and the individual stakeholder representatives that encompasses the decisions taken and actions proposed from our engagements.
“The immediate intervention strategies are as follows: We will immediately release fertilizers and grains to farmers and households to mitigate the effects of the subsidy removal.
“There must be an urgent synergy between the Ministry of Agriculture and the Ministry of Water Resources to ensure adequate irrigation of farmlands and to guarantee that food is produced all-year round.
“We shall create and support a National Commodity Board that will review and continuously assess food prices as well as maintain a strategic food reserve that will be used as a price stabilisation mechanism for critical grains and other food items.
“Through this board, government will moderate spikes and dips in food prices. To achieve this, we have the following stakeholders on board to support the intervention effort of President Bola Ahmed Tinubu.”
“The National Commodity Exchange (NCX), Seed Companies, National Seed Council and Research institutes, NIRSAL Microfinance Bank, Food Processing/ Agric Processing associations, private sector holders & Prime Anchors, small holder farmers, crop associations and Fertilizer producers, blenders and suppliers associations to mention a few.
“We will engage our security architecture to protect the farms and the farmers so that farmers can return to the farmlands without fear of attacks.
“The Central Bank will continue to play a major role of funding the agricultural value chain.
“Activation of land banks. There is currently 500,000 hectares of already mapped land that will be used to increase availability of arable land for farming which will immediately impact food output.
“Mechanisation and land clearing- The government will also collaborate with mechanization companies to clear more forests & make them available for farming.”
“River basins- there are currently 11 rivers basins that will ensure planting of crops during the dry season with irrigation schemes that will guarantee continuous farming production all year round, to stem the seasonal glut and scarcity that we usually experience.
“We will deploy concessionary capital/funding to the sector especially towards fertilizer, processing, mechanization, seeds, chemicals, equipment, feed, labour, etc.”
Continuing, he said, “The concessionary funds will ensure food is always available and affordable thereby having a direct impact on Nigeria’s Human Capital Index (HCI). This administration is focused on ensuring the HCI numbers, which currently ranks as the 3rd lowest in the world, are improved for increased productivity.
“Transportation and Storage: The cost of transporting Agricultural products has been a major challenge (due to permits, toll gates, and other associated costs). When the costs of moving farm produce is significantly impacted it will immediately be passed to the consumers, which will affect the price of food. The government will explore other means of transportation including rail and water transport, to reduce freight costs and in turn impact the food prices.
“As for storage, existing warehouses and tanks will be revamped to cut waste & ensure efficient preservation of food items.
“We will Increase revenue from food and agricultural exports. As we ensure there is sufficient, affordable food for the populace, we will concurrently work on stimulating the export capacity of the Agric sector.
“Trade Facilitation: Transportation, storage and export will be improved by working with the Nigerian Customs, who have assured us that the bottlenecks experienced in exporting and importing food items as well as intra-city transportation through tolling will be removed.
“These are some of the immediate interventions this government will put in place to tackle this crisis.
“Principally, one of the major positive outcomes of these interventions will be a massive boost in employment and job creation.
“Indeed, agriculture already accounts for about 35.21 per cent of employment in Nigeria (as at 2021), the target is to double this percentage to about 70 per cent in the long term.”
Alake said that President Tinubu’s mandate to create jobs for the teeming youth population will be achieved with between five to ten million more jobs created within the value chain, working with the current 500,000 hectares of arable land and the several hundreds of thousands more farmlands to be developed in the medium term.
He said, “In closing, this administration understands that food and water are the bedrock of survival and therefore is calling on all Nigerians to partner us in ensuring the success of this strategic intervention. This administration is working assiduously to ensure that Nigerians do not struggle with their essential needs.
“President Bola Ahmed Tinubu wishes to use this medium to continue to assure Nigerians that this administration will not relent in its efforts until all strategic interventions are deployed efficiently and effectively and until every household is positively impacted.
“Our president is the president of all Nigerians and the father of the nation. The renewed hope mandate remains alive and no one, absolutely no one, will be left behind.”
We will recover Nigeria from individuals who stifled development – President Tinubu
President Bola Tinubu yesterday assured women in the country that his administration is committed to ensuring that Nigeria is retrieved from the vested interests that have stifled her development.
He also assured the women that issues of security, healthcare system and industrialisation would be top on priorities of his administration.
President Tinubu said this at the State House when he received in audience the All Progressives Congress Women Leaders in the 36 States and Federal Capital Territory, Abuja, led by the APC National Woman Leader, Dr. Betta Edu.
The President declared that his administration was already implementing many policies and programmes that would positively impact the citizens.
While appreciating the women leaders for the visit, President Tinubu praised them for their support during the campaigns and elections, adding that they all deserve awards for their efforts.
“You all deserve gold medals because you worked so hard politically, overcoming so many obstacles like the fuel scarcity and Naira ‘confiscation,’ promising that their children would receive better rewards as their future is now guaranteed with the initiatives being put in place.”
With his new role as ECOWAS Chairman, President Tinubu told the visiting women that though his emergence would place on him additional responsibility, it would spur him to work even harder.
“We will continue to strive for a better Nigeria. You will not regret your confidence in this administration.”
Reaffirming his administration’s open-door policy, President Tinubu explained that the unity of the country is essential and central to his mind.
He advised the women leaders to be accommodating of others from other parties, who, having seen the silver lining and the brighter future that lie ahead, are now willing to come on board.
He tasked the APC women leaders to educate the citizens on the policies and programmes of his administration with the awareness that the present difficulties are temporary.
“You understand better, you are better coordinators, you know how to multi-task. The gains of the subsidy removal will be channeled to better the lives of Nigerians from the few that have been fleecing the nation,” the President said.
