The relief aid given to the states by the federal government to cushion the effects of the removal of the petrol subsidy is a loan.
For each of the federation’s states, including the federal capital territory (FCT), the federal government had earlier promised a rescue package worth N5 billion.
At the conclusion of the national economic council (NEC) meeting on Thursday, Borno Governor Babagana Zulum said the palliative would allow state governments to purchase 100,000 bags of rice, 40,000 bags of maize, and fertilizers to lessen the impact of food shortages across the nation.
However, in a memo to governors entitled “Re: Distribution of Palliatives – Terms of FG Facility”, Asishana Okauru, director-general of Nigeria Governors Forum (NGF), said states might opt out of the offer and return a sum of N2 billion already given to them.
“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.”
