The purported relief aid extended by the federal government to states as a response to the impact of petrol subsidy removal has now been unveiled as a loan.
The earlier announcement had outlined a N5 billion relief package for each state within the federation, inclusive of the federal capital territory (FCT).
Following the conclusion of the national economic council (NEC), meeting, which was chaired by Vice President Kashim Shettima, Borno State Governor Babagana Zulum disclosed that the primary intent behind the palliative was to facilitate the procurement of essential resources.
These resources encompassed 100,000 bags of rice, 40,000 bags of maize, and fertilisers, all aimed at addressing the prevailing food scarcity challenges experienced nationwide.
However, a memo carrying the subject line “Re: Distribution of Palliatives – Terms of FG Facility,” dispatched by Asishana Okauru, the director-general of the Nigeria Governors Forum (NGF), has unveiled a different dimension to the situation.
This memo conveyed that states are now empowered with the option to either accept or decline the relief offer. Furthermore, states have the prerogative to return the sum of N2 billion that had already been provided to them.
The revelation transforms the nature of the relief package, revealing it as a loan with provisions for states to make an informed decision regarding their participation.
“I have been directed by the Chairman, H.E. AbdulRahman AbdulRazaq to forward the terms of the facility as follows,” Okauru said in the memo.
- Facility size: N4,000,000,000.00
- Loan (48%): N1,920,000,000.00
- FGN Grant: (52%)
- N2,080,000,000.00 Beneficiary each state government
- Tenure: 20 months
- Interest Rate: Nil
- Moratorium: Three months
- Repayment Mode: Monthly
- Repayment Amount: N120,000,000.00
- Security Irrevocable Standing Payment Order (ISPO)
“Your excellency is invited to note that this offer is optional and states that do not wish to participate may opt-out and refund the N2 billion already disbursed to them.”
