Governor Babagana Zulum of Borno made this announcement following the conclusion of the National Economic Council (NEC) meeting held in Abuja on Thursday.
Governor Zulum revealed that the allocated funds would be utilised for the purchase of essential commodities to support citizens during this challenging period. Specifically, the funds will facilitate the acquisition of 100,000 bags of rice, 40,000 bags of maize, and fertilisers.
The disbursement is structured with 52 per cent as grants and 48 per cent as loans, to be repaid to the Central Bank of Nigeria (CBN) within a 20-month timeframe by the states and local councils.
He commended President Bola Tinubu and the CBN for their dedicated efforts to alleviate the impact of the subsidy removal on the populace.
In addition to this relief measure, Governor Zulum also highlighted the provision of food items to states neighbouring Niger Republic. This initiative aims to address the inflow of refugees into these states and mitigate their challenges.
Furthermore, Governor Zulum disclosed that the federal government had dispatched five trucks of rice to each of the states to assist vulnerable citizens within their jurisdictions.
He elaborated on the comprehensive relief package, revealing that approximately N500 billion would be disbursed across various sectors.
This package encompasses support for MSMEs, the industrial sector, cash transfers, agricultural initiatives, and the expansion of gas-powered transportation.
Addressing the escalating cost of fossil fuel, the federal government plans to establish more gas stations and procure additional gas-powered buses, including Compressed Natural Gas (CNG) and electric buses.
These efforts are aimed at cushioning the impact of the subsidy removal and promoting environmentally friendly transportation options.
Governor Zulum emphasised that, while these interventions offer short-term relief, the government is diligently working on sustainable solutions to address the situation.
He further revealed that state governments have been directed to engage with labour union leaders to negotiate palliatives, and a dedicated committee of governors has been established for this purpose.
During the NEC meeting, Governor Yahaya Bello of Kogi highlighted discussions related to the impact of the 2022 flood on states and the required actions to support the affected victims.
The NEC urged the federal government to promptly provide relief materials to assist those affected by the floods. Delays in disbursement were attributed to states that had yet to provide comprehensive data on the flood situation in their respective areas.
Additionally, Governor Seyi Makinde informed the council that a minute of silence was observed in honour of the officers and men of the armed forces who lost their lives in a helicopter crash in Niger State.
The NEC also issued advice to the government, emphasising the need for immediate actions and policies to stabilise the economy, reduce unemployment, and enhance investment inflows into the country.