States & Local Govts now enjoy 40% rise in FAAC allocation: Federal Government react to Peter Obi’s criticism

 

“The government also revealed that over 10,000 conversion kits have been distributed across the country in the first phase of the CNG initiative implementation, as part of the alternative measures to lower dependence on petrol”

PEGASUS REPORTERS, LAGOS | SEPTEMBER 25, 2024

President Bola Tinubu says Nigeria’s debt service to revenue ratio has dropped from a delicate 97 percent to around 60 percent, while allocations to states and local governments have risen by 40 percent.

The president also said Nigeria’s foreign reserve has grown to about $37bn, from $35bn in 2023, creating an extra $2bn savings

These were contained in the response to criticism of the president’s economic policies, especially the subsidy removal by Peter Obi, the Labour Party’s presidential candidate in the 2023, election.

Obi, while reacting to the current economic hardships faced by Nigerians, demanded to know what has happened to the Federal Government’s savings from the subsidy removal.

But President Tinubu, reacting through his media team, said the country has exited the Ways and Means debt regime, that characterised previous regimes in the country, adding that “Over $6bn of inherited forex backlogs have been cleared.

According to the Tinubu media team, “Majority of states and local governments have seen an increase in allocation of more than 40 percent.

The government also listed gains from the subsidy removal to include the grants made to medium and small-scale enterprises (MSME).

MSMEs grants have been awarded to millions of small entrepreneurs to support their businesses, Tinubu said.

The government also revealed that over 10,000 conversion kits have been distributed across the country in the first phase of the CNG initiative implementation, as part of the alternative measures to lower dependence on petrol

Thousands of people are currently benefiting from the student loan scheme

Thousands of civil servants (first phase) are currently benefiting from the recently launched Consumer Credit Scheme, which will soon be extended to other Nigerians.

Wage awards were given to workers to mitigate the effects of the subsidy removal. Foreign reserves have grown to around $37bn.

The president, while noting that times are hard, added, “So much is being put in place to make the Nigerian system work for us and the coming generations.

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