Due to economic reforms of the Nigerian President Bola Tinubu, which included eliminating a costly government subsidy on fuel, the Nigerians have been suffering from an increase in cost of living. In order to help the citizens to cope with economic hardships, the country’s authorities take multiple measures, including payments and wage hikes.
A supplementary budget of 2.176 trillion Nigerian naira (about $2.8 billion) for “urgent issues” such as defense, security and bridge repairs was approved by the Nigerian cabinet, the country’s Budget Minister Atiku Bagudu said.
“This supplementary budget is to fund urgent issues, including 605 billion naira [$767 million] for national defense and security. This is to sustain the gains made in security and to accelerate and reserve funds that are needed by the security agencies. Sum of 300 billion naira [$380 million] was provided to repair bridges, including coal and midland bridges” the minister told reporters after a cabinet meeting in Abuja.
Bagudu revealed that the money was provided for in the 2023 spending plan.
In May, Tinubu launched a program of economic reforms to revive the state’s economy after a decade of stagnation. The measures included removing of a fuel subsidy that amounted to $10 billion in 2022. It provoked a substantial increase in prices for fuel, food and other commodities, which, in turn, caused discontent among the local population.
In order to help people to cope with the economic difficulties, the minister said that the funds from the extra budget would be also used for agricultural inputs for farmers and for payments for federal workers from September to December, noting that Nigeria’s transport infrastructure would benefit from the supplementary budget, too.
As for other government measures, aiming to relieve the impact of Tinubu’s reforms, on October 17, Nigeria’s Finance Minister Wale Edun revealed that about 15 million vulnerable households will receive around $1.5 billion in cash.
Moreover, in early October, the president suggested some measures to help offset the effect of his reforms, including a temporary minimum salary increase for lower-paid workers, cheap gas-powered public transport and more social security for the poor.
Earlier, the country’s government endorsed a spending plan of $34 billion for the 2024 budget, according to Nigeria’s Federal Ministry of Budget and Economic Planning.
Source: Sputnik Africa