By kawaekwune Jeffrey
The Federal Government of Nigeria has revealed that it has offered several support to state governments between July 2023 and July 2024 to help cushion the effects of economic difficulties on the populace.
Nigeria is grappling with a record high inflation rate of 34.19 percent as of June 2024, exacerbated by reports of two-time devaluation of the naira and the removal of petrol subsidy.
According to reports the inflationary pressures have driven Nigeria’s interest rates up by a combined 800 basis points, from 18.75 percent last July to 26.75 percent, as the central bank deploys monetary tools to stabilize the battered economy.
Food inflation, constituting the largest percentage of the headline inflation, currently stands at 40.87 percent. The costs of energy, transportation have soared over the past year, making life increasingly difficult for the masses.
According to the protesters the protests are driven by economic hardship, high food prices, and the fallout of the removal of fuel subsidies.
However, In a post on its X account on Tuesday, the Federal Ministry of Information and National Orientation outlined the major support initiatives provided to state governments to mitigate the economic hardships faced by Nigerians. The federal government listed them as follows:
*Increased FAAC Allocations
The FG noted that allocations from the Federation Account Allocation Committee to states have increased by almost 50 percent in the first half of 2024 compared to the first half of 2023.
*N5 Billion Palliative Package
The central government allocated N5 billion to each state and the federal capital territory in August 2023 to cushion the impact of the subsidy removal. The package was a mix of grants and optional loans.
*$617.7 Million Investment in Technology
The FG’s $617.7 million ‘Investment in Digital and Creative Enterprises’ (i-DICE) program aims to train a minimum of 25,000 youths in each state and create at least 100,000 jobs per state.
*Climate Change and Environmental Support
The Tinubu administration has committed to providing funding to support states in managing climate challenges. This includes backing the National Committee on Flood Mitigation, Adaptation, Preparedness, and Response.
*MSME Support
Through the National MSME Clinics program, the Federal Government partners with state governments to host regular clinics that bring together federal regulatory agencies to assist MSMEs and develop specialized business support hubs.
*Food Support
The FG has provided various food supports, including 42,000 metric tonnes of grains to all 36 states and the FCT in April 2024 and 20 trucks of rice to each state and the FCT in July 2024. Additionally, the CBN donated 2.15 million 50kg bags of fertilizers, valued at over N100 billion, for free distribution to farmers through the states.
*Infrastructure Development
The establishment of the Infrastructure Development Fund in July 2023 supports state-level infrastructure projects. The presidential assent to the new Electricity Act (2023) allows states to participate in all aspects of the electricity value chain.
It would be recalled that the #EndBadGovernance protests erupted nationwide as a result of growing dissatisfaction with the federal government’s policies and the economic difficulties faced by many Nigerians. To this end, protesters are demanding the restoration of petrol subsidies, reform of the electoral body( INEC), an intensified fight against corruption, amongst others.
