Fuel Subsidy Removal: NEC announces measures to alleviate impact
The National Economic Council (NEC) unveiled a series of palliative measures aimed at mitigating the consequences of fuel subsidy removal for the Nigerian people.
The announcement came after a meeting attended by representatives from all 36 states of the Federation, the Director General of the Nigerian Governors’ Forum, and stakeholders from the World Bank and various government agencies.
One of the key resolutions reached focuses on providing cash transfers to Nigerians through the utilization of state social registers, taking into account the unique circumstances of each state.
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This initiative aims to offer financial support to vulnerable individuals and families affected by the fuel subsidy removal.
Furthermore, government officials were strongly encouraged to reduce the overall cost of governance in their respective states. This measure aims to promote fiscal responsibility and efficient resource allocation, ensuring that funds are appropriately directed towards essential services and projects.
The Federal Government has also introduced a six-month cash award policy for civil servants. This initiative recognizes the dedication and hard work of public servants and aims to provide them with additional financial assistance during this transitional period.
Additionally, state governments will distribute food items, grains, and fertilizers at prices acquired from the National Emergency Management Agency (NEMA). This endeavor seeks to alleviate the burden of rising food costs and support agricultural productivity.
States were urged to establish police initiatives that address transportation costs, among other challenges. By tackling these issues, the aim is to enhance accessibility and affordability of transportation for all Nigerians.
The NEC also highlighted several other resolutions, including the negotiation of a new minimum wage for workers, the payment of outstanding liabilities to public servants by state governments, and the facilitation of funding for Micro, Small, and Medium Enterprises (MSMEs) at single-digit interest rates. Furthermore, the immediate implementation of the energy transition plan, emphasizing the shift from fossil fuel vehicles to Compressed Natural Gas (CNG), was underscored.
These palliative measures demonstrate the commitment of the NEC to provide support to Nigerians during this period of transition and ensure that the impact of the fuel subsidy removal is minimized.