The minister of finance and coordinating minister of the economy, Wale Edun has said that the sum of N2 billion has been released to the 36 States and the federal capital territory.
The minister, who said this during a press briefing on Friday in Abuja, said the money is a combination of loans and grant.
Edun said the federal government decided to release the money in tranches to avert further spikes in the inflation rate.
He said, “On the issue of the N5 billion, it is a combination of grants from the federal government and borrowing by the states. And of course, although the sum of N5bn is earmarked, you will agree with me that if you release such funds across all states at once, it will be self-defeating and it will lead to an inflationary spiral, lead to cost of goods going up, and exchange rate liquidity will go up,” he said.
The minister further said that the N500 billion palliatives is part of the federal government’s support to poor and vulnerable Nigerians.
He said “the president is going to deliver a better life to Nigerians by encouraging investment that increases productivity that grows the economy and thereby creating jobs and reducing poverty”.
Acknowledging the hardship currently being experienced by Nigerians over the removal of petrol subsidy, the minister said that in a little while, the whole system will begin to experience the benefits of the subsidy.
He said: “There are funds in domiciliary accounts and If you give people the incentives they will utilise those funds in Nigerians for Nigerians. They have huge holdings in foreign currency in banks abroad, in financial institutions abroad. We need to provide the environment that brings those funds home, to choose to invest in the Nigerian economy rather than foreign economy.”
The Chairman presidential Committee on fiscal policy and tax reforms, Taiwo Oyedele said the federal government would rake into its coffers N20 trillion if the right taxes are paid.
He added that the government was in the process of reviewing the incentives that has been granted over the years.
According to him, the sum of N6 billion is lost by the government from incentives.
He insisted that going forward, incentives would be targeted at those that need it the most saying that the country could “make more money from tax than we can do from crude oil.”
