The Federal Government of Nigeria has listed its support to state governments from July 2023 to July 2024.
This comes amid nationwide protests tagged #EndBadGovernance caused by widespread discontent with the policies implemented by the Bola Tinubu-led administration.
Nigeria is currently contending with a record high inflation rate at 34.19 per cent in June 2024 due to the two-time devaluation of the naira and removal of petrol subsidy.
The inflationary trends have raised Nigeria’s interest rates by a combined 800 basis points from 18.75 per cent last July to 26.75 per cent as the central bank continues to deploy monetary tools to restore the battered economy.
Food inflation, which constitutes the largest percentage of the headline inflation, is currently 40.87. The cost of energy and transportation have skyrocketed in the last one year, making life difficult for the masses
The demonstrators, driven by grievances over economic hardship, high food prices, and the removal of fuel subsidies, continue to demand changes.
In a post on its X account on Tuesday, the Federal Ministry of Information and National Orientation listed the FG’s major support to state governments to cushion the effects of the economic hardships faced by Nigerians.
Increased FAAC
The FG noted that money from the Federation Account Allocation Committee to states has increased, highlighting that “allocations to States and Local Governments from the Federation Account are up by almost 50 percent in the first half of 2024, when compared with H1 2023.”
N5 billion palliative
The central government also stated that N5 billion was allocated to each state and the federal capital territory to cushion the effect of subsidy removal in August 2023.
“FGN announced a N5 billion palliative package for each State and the FCT, to cushion the impact of the removal of the petrol subsidy. The package was made available as a combination of grants and (optional) loans to the States (August 2023),” the information ministry stated.
$617.7 million investment in technology
The FG noted that its $617.7 million ‘Investment in Digital and Creative Enterprises’ (i-DICE) programme will be implemented across the 36 States and FCT, with a target of a minimum of 25,000 youths trained in each State, and the creation of a minimum of 100,000 jobs per state.
Climate change and environment
The information ministry also noted that the Tinubu administration has agreed to make funding available to support states in managing climate challenges.
“At the 142nd NEC Meeting in June 2024, it was agreed that the FGN would explore avenues to make funding available to support States in managing climate challenges.
“FGN supporting the National Committee on Flood Mitigation, Adaptation, Preparedness and Response, chaired by Governor of Kogi State, Ahmed Usman Ododo. The Committee is to help States respond more effectively to flooding challenges across the country,” it stated in the slide posted on X.
MSME support
The ministry stated that “through the National MSME Clinics programme, the Federal Government partners with State Governments to (a) Host regular “Clinics” that convene all relevant federal regulatory agencies to interact with MSMEs and solve their problems (b) Develop specialized business support hubs for MSMEs.”
Food support
The FG listed several food supports to states including the allocation of 42,000 metric tonnes of grains to all 36 States + FCT (April 2024), and the allocation of 20 trucks of rice to each State + FCT (July 2024).
It also noted that “CBN has donated 2.15 million X 50kg bags of various blends of fertilizers, valued at over N100 billion, to the Federal Ministry of Agriculture and Food Security, for onward free distribution to farmers, through the States.”
Infrastructure
The federal ministry noted the establishment of the Infrastructure Development Fund in July 2023 to support states.
It also noted the “presidential assent to the new Electricity Act (2023), which provides a detailed framework for the States to participate in all aspects of the electricity value chain.”
