Nigeria: Fuel Subsidy Removal - Ondo Government Unfolds Palliative Package

The state government will provide free rides on shuttle buses, abolish hospital registration, consultation fees

The Ondo State Government has announced comprehensive palliative measures to cushion the effects of the removal of the petrol subsidy on residents of the state.

The Commissioner for Finance, who also chairs a committee set up by the state government on palliatives, Wale Akinterinwa, announced the measures on Thursday.

They include free rides for students on shuttle buses from when schools resume in September until 31 December.

"Thereafter, affordable rates will be charged from January 2024," he said.

"We announce the immediate suspension of hospital registration and consultation fees.

"Government will reimburse the hospitals directly based on existing data.

"In like manner, free shuttle boats equipped with life jackets for students in riverine areas starting at resumption in September, till December 31st. Thereafter, affordable rates will be charged from January 2024.

"We will immediately deploy all existing buses in all MDA'S to serve as free shuttle buses to public servants till December 31st."

Mr Akinteriwa said additional CNG buses would be purchased to convey public servants to and from work at no cost to them, till the end of December.

Also, the state government would also make an unconditional cash transfer of N10,000 for "selected vulnerable persons in every local government" for three months.

Pensioners in the state, including local government or state government retirees, would get N10,000 each from August to December.

The state government will also distribute food packages to one million households across the state, and make farm inputs available to farmers at subsidized rate, "just as poultry and other livestock farmers will get free drugs, maize and feed for their birds and fishes.

"Agrochemicals, seeds, drip lines, farm tools and power tillers will be given at subsidized rates. In riverine areas, free fishing nets and subsidized kilns will be made available," Mr Akinteriwa said.

"To ease the movement of farm produce, tricycles will be given free to farming communities. This will be supervised by officially recognised, community-based stakeholder groups.

"The state government has authorised immediate suspension of haulage fee collection on all non-graded agricultural produce. These are produce that are consumed locally and not for export."

The commissioner further said there will be immediate payment of the 2020 leave bonus to public servants. It should be noted that the state government has already paid leave bonuses for 2021, 2022 and 2023.

Small and Medium Enterprises

Various categories of small and medium enterprises will also benefit from the palliative, Mr Akinterinwa said.

Students who are engaged in nano businesses on campus, according to the commissioner, will also get financial support. He said the money to nano, small, and medium enterprises will be disbursed through existing government channels.

The presidency had earlier got the National Assembly's approval to disburse N500 billion as palliatives over the removal of subsidy on Nigerians.

President Bola Tinubu, in a broadcast, said he would spend N200 billion of the sum on boosting agriculture and food production.

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