The Federal Government has disbursed the sum of N2billion to each State of the Federation and the Federal Capital Territory (FCT) as part of the
N5billion palliative package that was announced by the federal government to cushion the effects of petrol subsidy removal.
Minister of Finance and coordinating Minister of the Economy, Wale Edun, disclosed this to journalists on Friday at a press briefing to outline some of his headline policy plans for the nation’s economy.
Mr Edun said the facility was a blend of grant and borrowing by the federal government to the 36 States and FCT.
He said the fund was not part of the proposed $800 million World Bank loan to cushion the effect of the subsidy removal.
The minister said the Federal Government had to hold back on the balance of N3billion to avoid a spike in inflation figures if the funds were released at once.
The Minister said while the government cannot rely on borrowing to fund the national budget, it will mobilise revenue from improved oil production to earn more forex and create the enabling environment for local and foreign investors to come in to create jobs and improve the economy.
He anchored the economic plan of the administration on increasing revenue, effective debt management, and automation of revenue collection to plug leakages and create the enabling environment for private sector players to invest and flourish.
Meanwhile, the group chief executive officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, who was also at the press conference, said the oil company would have gone bankrupt if gasoline subsidy was not removed by President Bola Tinubu on resumption of office.
Mr Kyari also said government will start making more money soon following improved crude oil production, which he said was 1.7 million barrels as at Wednesday of this week, and removal of the petrol subsidy.
