FG Directs Review of 8K Stipends to Cushion Subsidy Removal Effect

President Bola Tinubu has directed a review of his administration's earlier proposal to disburse a monthly cash distribution of N8,000 to 12 million poor and vulnerable households in Nigeria for the next six months as part of his administration's efforts to reduce the effects of the removal of fuel subsidy.

This is in reaction to public criticism of the scheme, with organized labour claiming that it falls well short of the degree of commitment necessary to alleviate the suffering of disadvantaged Nigerians, while others are voicing worries about the initiative's transparency.

This information is contained in a statement issued by Dele Alake, Special Adviser to the President on Special Duties, Communications, and Strategy, on Tuesday, July 18, 2023, in which he stated that the new order is in respect to Nigerians' disagreement to it.

Alake, who noted that the cash program was not the only component of Tinubu's relief package, stated that President Tinubu has committed to always placing Nigerians at the center of his policy and program.

He stated that President Tinubu asked that the N8,000 conditional cash distribution program, which was intended to help the most needy households, be reviewed immediately.

The President also ordered that the complete government's palliative package be revealed to Nigerians, as well as the immediate distribution of fertilizers and foodstuffs to about 50 million farmers and families in all 36 states and the FCT.

The Statement by Dele Alake, Special Adviser to the President on Special Duties, Communications, and Strategy

• “You will agree with me that it has become part of the culture of President Bola Ahmed Tinubu’s administration to constantly dialogue with Nigerians who voted him into office. The President covenanted with Nigerians that their welfare and security will be topmost in the Renewed Hope Agenda of his government.

• “In the last few days, the conventional and new media platforms have become awash with stories of the government intending to embark on conditional cash transfer to vulnerable households mostly affected by the painful but necessary decision to remove subsidy from petrol.

• “The story has been widely reported that the Federal Government is proposing to give 12 million households from the poorest of the poor N8,000 monthly for six months as government palliative to reduce the discomfort being experienced by Nigerians consequent upon subsidy removal.

• “A lot of ill-informed imputations have been read into the program by not a few naysayers. The Administration believes in the maxim that when there is prohibition, there must be provision. Since the subsidy, the hydra-headed monster threatening to kill the economy has been stopped, and the government has emplaced a broad spectrum of reliefs to bring help to Nigerians.

• “While it should be noted that the cash program is not the only item in the whole gamut of relief package of President Bola Ahmed Tinubu, as a listening leader who has vowed to always put Nigerians at the heart of his policy and program, the President has directed as follows: –

1. That the N8,000 conditional cash transfer program envisaged to bring succor to most vulnerable households be reviewed immediately. This is in deference to the views expressed by Nigerians against it.

2. That the whole gamut of a palliative package of government is unveiled to Nigerians.

3. Immediate release of fertilizers and grains to approximately 50 million farmers and households respectively in all 36 states and the FCT.

• “The President further assures Nigerians that the N500 billion approved by parliament to cushion the pain occasioned by the end of the subsidy regime will be judiciously utilized. The beneficiaries of the reliefs shall be Nigerians irrespective of their ethnic, religious, or political affiliation.

• “President Bola Tinubu has promised to always prioritize the wellbeing of Nigerians and he is irrevocably committed to the vow. Several decisions taken so far by this Administration have buttressed this stance.

• “You will recall that the President took a similar decision after listening to complaints from the business community/stakeholders about burdensome taxes, particularly the multiplicity of taxes they are made to experience. This warranted the signing of four (4) Executive Orders canceling some classes of taxes while suspending the implementation dates of others.

• “In addition, the President has also set up a Tax Reform/Fiscal Policy Committee to bring up recommendations that will engender a wholesome fiscal environment for the country and remove anti-business barriers.

• “I wish to assure Nigerians that President Tinubu will continue to be a listening leader whose ears will not be dull to the views expressed by the citizenry. The President believes government exists to cater to the interest of the people and he has demonstrated this so clearly.’’

What Did Organized Labour Say Concerning the Federal Government Plans?

The Federal Government's request to pay N8,000 into the accounts of 12 million vulnerable and impoverished Nigerians over the next six months to reduce the effects of the withdrawal of subsidies on Premium Motor Spirit, generally known as petrol, has been criticized by organized labour and some economists.

Mrs Funmi Sessi, Chairman of the Nigeria Labour Congress, Lagos Chapter, compared the Federal Government's proposal to a drop of water in the ocean (little effort).

Sessi talked to the News Agency of Nigeria in Lagos on Friday, as industry stakeholders responded to the government's proposal.

In a request to the National Assembly, the President stated that his government intends to provide for the welfare of vulnerable and impoverished households in the country through the National Safety Net Programme.

He stated that under the scheme, N8,000 will be sent digitally to the accounts of 12 million poor and low-income households on a monthly basis for six months. Punch Newspaper recorded all efforts of the organized labour to make sure the Federal Government does a review its supposed plan to disburse N8,000 to impoverished households for the next six months.