Subsidy Removal: Government To Provide N8,000 Palliative To Impoverished People Using Biometric Validation

In order to cushion the impact of subsidy removal, the federal government is all set to transfer N8,000 palliative to each vulnerable Nigerian across the country.

The ministerial nominee from Ogun State, Olawale Edun, made the announcement on Tuesday before the Senate. President Bola Ahmed Tinubu had forwarded Edun's name as one of the 28 ministerial nominees last week.

Ahmad Lawan, the former president of the Senate of Nigeria, who was also present in the meeting, asked Edun how he would supervise the distribution, to which he answered, "Every recipient of the N8,000 palliative should have a biomimetic validation and without that such person will not benefit."

Edun went on to give India's example, where the government has digitalized the entire banking system for each and every household.

When asked about the $800 World Bank loan, the ministerial nominee refused to comment on it.

"I would not like to talk about the 800 million USD World Bank loan but It is better to find a way than throwing a baby away with the bath water," he said, PremiumTimes reported.

He added that if he was given an opportunity to serve as a finance minister, then he would make sure there was a separation between the account of the federation and the accountant general of the government.

"If given the opportunity, I'll do my best," he said. "I think consistency is very important. In the days when I was in the public service at the sub-national level, under our president, I advocated that there should be a separation between the account of the federation and the accountant general of the government. I would like to retain that stand."

The $800 million massive loan was taken by former President Muhammadu Buhari during his term. Former Finance Minister Zainab Ahmed disclosed in April that the World Bank granted a relief package worth $800 million to Nigeria in order to expand the national social program.

The finance minister explained the funds received from the World Bank would be distributed in cash form to the "most vulnerable" people, who have been registered in a national social register.

This decision of the World Bank came before the new president of Nigeria announced subsidy removal on May 29. The finance minister clarified in May that Nigeria was not seeking another $800 million World Bank loan as rumors circulated in the media at that time.

Considering the impact of the fuel subsidy removal, President Tinubu said on Monday that it saved the country $1.32 billion within two months. However, it has increased food and fuel prices across Nigeria.

In fact, thousands of Nigerian youths attacked the National Emergency Management Agency warehouses to find food and non-food items last week.