NECA Faults Plans to Disburse N5bn Each to 36 States, FCT

By Adedapo Adesanya

The Director General of Nigeria Employers Consultative Association (NECA), Mr Wale Smatt-Oyerinde, has faulted the plans of the federal government to distribute N5 billion to states and the Federal Capital Territory (FCT) over its lack of transparency.

Recall that Business Post reported on Thursday, August 17, that President Bola Tinubu approved the allocation of N5 billion to each state, including the FCT, as palliatives to cushion the effects of the removal of the petrol subsidy.

According to the FG, 52 per cent of the funds were given to the state governments as grants, while 48 per cent is in the form of loans.

Speaking in an interview via Channels Television on Friday, August 18, Mr Oyerinde noted that while the intentions are clear, there is no clear direction for its distribution.

“How exactly will the N5 billion be distributed? What purpose will the N5 billion be put into? Looking at where we were before now and what brought us to this point. The fuel subsidy removal created a shock that devolved into many other issues; you cannot be complaining about the effect and feeding the cause.”

He challenged the federal government to look at the root cause and worried that palliatives wouldn’t reach the most vulnerable, for which it was designed.

“Whatever solution we are bringing should first address the root cause of the fuel subsidy. Will the N5 billion be used to address the root cause? Will it be judiciously used to impact the lives of those that the government has selected to be the beneficiaries of those funds?

“For us, it is less about the amount, but what exactly is the framework that will be used to disburse these funds?” he said.

He lamented the lack of an adequate framework to serve the primary targets of the palliatives.

In his words, “If you don’t create a framework or a path where that N5 billion will trickle down to those that need it, then you have created another inefficient system.”

Mr Oyerinde also highlighted the fact that the database that was used to identify the poorest of the poor in the country is already being contested, and this would allow many to game the system for their self-interests.

He tasked the government with utilising data properly and challenged other stakeholders to develop an interest in prioritising data as a measure to check government policies.