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Nigerian govt approves $235m to cushion fuel subsidy removal effect

Published

1 year ago

August 18, 2023

The Nigerian government has approved a total of 180 billion naira ($235 million) for its subnational units— 36 states and the Federal Capital Territory— to procure rice and maize to cushion the effects of food shortages across the country and hardship caused by recent reforms, particularly the currency float and removal of subsidy on petrol.

At the National Economic Council (NEC) meeting in Abuja presided over by Vice President Kashim Shetimma, it was announced that each state would receive 5 billion naira.

The fund will be split between a grant and a loan with a two-year repayment period, to purchase 100,000 trucks of rice and 40,000 trucks of maize.

“NEC … expressed serious concerns regarding increasing costs of food items, increasing costs of transportation, amongst others as a result of subsidy removal,” Borneo Governor, Babagana Zulum, told reporters.

Meanwhile, organised labour has criticized the Federal Government for its N180bn palliative package to states on the grounds that the governors could not be trusted, noting that politicians and not the poor would benefit from the N5bn given to each state government for disbursement to the citizens.

The NLC President, Joe Ajaero, said the governors could not be trusted, as most of them were not paying minimum wage, adding that no committee was established to ensure the successful implementation of the initiative.

“N5bn multiplied by 36 states is going to give you N180bn. So if you divide that with the official figures from the National Bureau of Statistics, which says that 133 million Nigerians are multi-dimensionally poor, and calculate it, you will get about N2,000 each for those who are poor. Ajero argued.

Since the removal of fuel subsidies, there has been back and forth between the government and organized labour on the best approach to manage the fallout of the policy.

Related Topics:Featured Fuel subsidy Nigeria

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Moroccan annual inflation rises to 0.8% in November

Published

23 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”