Subsidy Palliative: BudgIT Calls For Transparency In Fund’s Disbursement

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BudgIT, a civic-tech organization leading the advocacy for transparency, accountability, and effective service delivery in Nigeria has called for openness and accountability in the distribution of the N5 billion relief fund being disbursed by the Federal Government to state governments in order to achieve the goal of the intervention.

It noted that the recent economic crisis and escalating cost of living nationwide, particularly in essential commodities such as food items necessitated the Federal Government’s approval of N5 billion as palliatives to the 36 states and the Federal Capital Territory (FCT), to cushion the impact of the petrol subsidy removal.

The civil society organization recalled that Borno State Governor, Babagana Zulum, had hinted that52% of the funds were given as grants to the state governments, while the remaining 48% will be issued as loans.

In addition to the N5 billion relief fund, the federal government released five trucks of rice to each of the 36 state governors. Meanwhile, the state governors will also procure 100,000 bags of rice, 40,000 bags of maize, and fertilizers

BudgIT pointed out that while the intervention is designed to alleviate the effect of the subsidy removal, there were concerns regarding the distribution mechanism for the palliatives across the 36 states.

Specifically, the organization stated that what remained worrisome is the absence of a detailed guideline on how the state governments will distribute these resources as there are mixed reactions nationwide over the potential mismanagement or unequal distribution of these palliatives.

It maintained that without a comprehensive framework, the risk of these resources not reaching the most vulnerable of society remained high, especially as the issue of transparency at sub-national level remains a critical factor.

The CSO further stated: “As these funds are disbursed to the states, it becomes paramount for each state government to uphold the principles of transparency and accountability. Citizens have the right to know how the N5 billion funds will be utilized within their respective states. A clear plan and communication on how these resources will be used are vital in building public trust.”

Speaking on the need for openness in the disbursement of the palliative funds , the Acting Head of Open Government and Institutional Partnership, BudgIT, Iyanuoluwa Bolarinwa, referred to some videos making the rounds on social media showing citizens receiving palliatives like beggars amid zero decorum.

Bolarinwa pointed out that “acts like this will not establish who received what, thereby defeating the purpose of transparency and accountability”.

Given these concerns, BudgIT urges the federal and state governments to provide and publicize a comprehensive sharing formula and breakdown of how the palliatives will be shared among citizens to ensure equitable access and accountability.

In addition, it charged the governments to enhance transparency by openly communicating their strategies for utilizing and distributing the funds and resources allocated as well as collaborate with independent organizations to establish monitoring measures that the public can access.

While stressing that the well-being of Nigerians during these challenging times should remain a top priority. BudgIT believes that a transparent and inclusive approach to palliative distribution and resource management is crucial to fostering public trust and achieving this initiative’s desired impact on the citizens.

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