N5billion Palliative won’t solve hunger problem in Nigeria, says Business Analyst

By Obiabin Onukwugha

The National Economic Council, NEC, last week announced that the Federal Government has approved N5 billion grant to be given to each of the 36 states of the federation for the procurement of grains as well as five trucks of rice to each state as palliatives to cushion the effect of fuel subsidy removal.

The NEC, presided by Vice President Shettima Kashim, also approved the distribution of 40,000 bags of maize and as well as fertilizers to the states.

Nigerians have been suffering untold hardships, with many households not able to provide three square meals a day, due to what experts describe as bad policy and decision making on the part of the Federal government, and as well climate change effects that have led to shortages in food supply.

As of 2022 when the fuel subsidy regime existed, two-thirds Nigerians were reported to be living below the poverty line of $2 per day.

According to the Global Hunger Index, Nigeria ranked103rd out of the 121 countries with sufficient data to calculate 2022 GHI scores.

The report further indicated that with a score of 27.3, Nigeria has a level of hunger that is serious. This is even as Nigeria’s inflation rate stood at 22.79 percent as of June this year.

A market survey by Naturenews reporter showed further increase in food prices. A bag of Nigerian rice, which previously sold for N45,000, currently sells at N52,000, while foreign rice that previously sold for N50,000 as of June has now increased to N58,000. A basin of garri now sells for N8,500 against the previous price of N8,000, while a medium size tuber of yam sells at N2,000 as against N1,700 even as a big size tuber of yam now sells at N3,000 as against previous price of N2,500.

Also a litre of groundnut oil now sells at N3,000 against the previously sold price of N1,100, while red oil sells for N1,800. Also a kilo of frozen chicken now sells at N2,800 against the previous price of N2,200 at the popular Creek road market in Rivers State.

A business analyst, Mr. Ignatius Chukwu, views the move by the Federal Government as money to be shared by governors to their loyalists.

Chukwu, who is the Regional Manager, South/South, South/East of Business Day Newspaper, told NatureNews reporter in an interview that no palliative can cure subsidy removal in Nigeria.

“If the money is an open one, if there is no directives on how to share it, then it’s money for the boys. Any money given to governors to share goes to ‘the boys’. Simple. Governors only see their boys, election boys, nobody else”, he said.

He noted that the N5billion was the previously proposed eight thousand to each poor household being presented in a different way.

“It’s the same money they wanted to share as eight thousand naira each. This was shouted down. They now passed it to governors. It’s the same wrong move.

“If it was wrong to be shared by the FG, it’s same wrong move now. No palliative can cure subsidy removal. If there was no money to support subsidy, there can be no money to heal its removal.

“It’s when governments run out of idea, they remember to share money. There was no deep plan before the subsidy removal. Palliative does not replace deep thinking. Even if they use voters card to share, you have 94 million persons. So, no formula can work. Poor planning has no substitute. N5billion cannot solve the hunger problem in Nigeria”, he posited.

Meanwhile, there are indications that the money and relief materials given to the states by the federal government is a loan.

A report from TheCable indicated that in a memo to governors entitled “Re: Distribution of Palliatives – Terms of FG Facility”, Director-General of Nigeria Governors Forum (NGF), Asishana Okauru, said states might opt out of the offer and return a sum of N2 billion already given to them.

A breakdown in the report showed that the loan has a three months moratorium with a monthly N120,000,000.00 repayment amount.

“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,” TheCable quoted the memo.

The Rivers State government recently distributed quarter bags rice and N10,000 each, to widows who are members of the ruling People’s Demcratic Party (PDP), in the state. Naturenews could not confirm as of press time whether it was part of the already N2billion accessed by the states.