State Governors to Share N8,000 to Poor Nigerians to Cushion the Effect of Subsidy Removal

To address the hardships faced by Nigerians following the removal of fuel subsidy, the National Economic Council (NEC), consisting of 36 state governors and Vice President Kashim Shettima, has formulated a plan for state governments to execute cash transfer programs using state-generated social registers. The decision aims to ensure a more accurate representation of the number of vulnerable citizens in need of financial support.

The NEC's move comes as the government prepares to roll out intervention measures to alleviate the effects of the subsidy removal and the unification of exchange rates. At a recent meeting chaired by the Vice President at the Aso Rock Villa in Abuja, a sub-committee was established to devise strategies for mitigating the economic challenges faced by the nation.

Speaking to State House correspondents after the meeting, Ogun State Governor, Dapo Abiodun, stated, "It is states that are better positioned to do that enumeration to ensure the integrity of the social register." He emphasized that state-generated registers would enhance the reliability and effectiveness of cash transfer programs, making sure the resources reach the intended beneficiaries.

The decision to adopt state-generated social registers marks a departure from the existing National Social Register, which has so far captured over 61 million vulnerable Nigerians eligible for various government social programs.

Governor Abiodun further revealed that the NEC proposed implementing a six-month cash award policy for all public servants. Under this policy, sub-national entities would provide a prescribed amount of cash to civil servants monthly. The implementation of the Cash Award Policy (CAP) will vary depending on each state's individual capacity and priorities.

Explaining the rationale behind the six-month timeframe, Governor Abiodun said, "As much as we're also particular about ameliorating the pains of our people immediately, a lot of sustainable measures are being put in place, and it's our hope that within now and the next six months, those sustainable measures would have begun to be visible." He added that the cash awards would be tax-exempt.

Governor Charles Soludo of Anambra State supported the move to use state-generated registers, stating that the integrity of the existing National Social Register was questionable. He emphasized the need for a credible register, stress-testing the data to confirm the eligibility of beneficiaries, and argued that the delivery of federal programs should be executed through state governments.

Regarding the amount to be disbursed under the cash transfer program, Governor Soludo clarified that there would be no uniform figure. Instead, it would depend on the financial capacity of each respective state. States with outstanding salaries and allowances owed to public servants must prioritize clearing those arrears before implementing cash transfers.

The NEC also proposed negotiating a new minimum wage as part of medium and long-term strategies to support citizens during economic hardships.

Additionally, Governor Soludo dispelled rumors that the Federation Account Allocation Committee would distribute N1.96 trillion to the three tiers of government in July 2023. He clarified that the actual amount was around N900 billion, aimed at moderating the possible impact of economic shocks.

With state governments taking charge of cash transfers to vulnerable Nigerians, it is hoped that this move will provide better-targeted support to those in need and alleviate the challenges faced by citizens following the fuel subsidy removal.