How Safe is the Oyo State Government SAfER Compare to FG 5bn Palliatives?

Following the abrupt removal of fuel subsidy, prices of goods jerked up as inflation rate rose to 22.79 per cent. This was in June from 22.41 per cent in the previous month. Even, legal fees of lawyers were jacked up. No single activities escaped a vast tilt. But salaries and pensions remained the same and minimum wage was never planned to be increased anytime soon, at least by Governor Seyi Makinde.

 

In Nigeria of over 200 million population with 130 million in abject poverty, the costs of living of a family of four estimated monthly climbed up to 1,412.9$ (1,094,935.7₦) without rent. This is broken to just 80 percent for singles. Yet, economic hardships bite harder.

 

Seeing this, President Bola Tinubu, upon who, the onus of all these matter rest, sought to cushion the effect of fuel subsidy by at first making monthly N8,000 transfer to 12 million of the poorest households in the country for six months. The plan met with stern criticisms leaving President Tinubu to backtrack and review the plan coming out with giving the 36 states N5bn, 5 trucks of rice, maize and fertilizers each to cushion the effect of fuel subsidy removal.

 

But this was after the Oyo State Governor, Seyi Makinde had, during a broadcast on Saturday August 5, 2023, announced the multi-pronged Sustainable Action for Economic Recovery (SAfER ) intervention to ease the economic burden foisted on the people by the subsidy removal.

The SAfER initiative, headed by Governor Makinde’s Chief of Staff alongside a 15-man committee set up by the Governor is with the aim to serve as the State Government palliatives to cushion the effect of fuel subsidy on the citizens of Oyo State.

 

However questions began to arise as SAfER initiative seems to be more preferable than the Federal Government palliatives which only cut across N5bn, rice, maize and fertilizers. Oyo State Government had said SAfER package is its initiative and is wholly supported by it. While the FG palliatives package are also different.

 

But the Federal Government palliatives as were reported were different from the reality. SAfER, however plans to use it to its advantage. No separate trucks of rice, fertilizers and maize, adding up to the N5bn. “the support to States from the FG includes: N4 billion (N2.08 billion grant and N1.92 billion loan repayable after 3 months in N120 million monthly instalments) and N1 billion worth of grains from the national grain reserve,” Oyo State Government (OYSG) feedback team told the PIJAlance Magazine.

 

The OYSG which plans to “release updates on what the funds will be utilised for soon,” said the Federal Government has designated N2 billion from the overall N5 billion for state governments, earmarked specifically for procuring rice.

 

“Also, a 15 man committee has been set up to oversee the distributions and more details about the execution of the programme will be announced by the relevant agencies soon.”

 

SAfER initiative is divided into six sections, and are expected to provide a softer landing for the poorest of the poor and the most vulnerable. “It will also address the need for food security through direct intervention to our farmers,” Governor Makinde noted.

 

The first SAfER package includes transportation – cutting across the extension of bus routes, the introduction of inter-city Omituntun buses to link geo-political zones and fare reduction for students as well as the aged.

 

Also, subsequent ones are: Food relief package – this focuses on providing over 200,000 poorest of the poor households in the state with food items.

 

“Food Security – This intervention is aimed at providing input support for 10,000 farmers in the state.

 

“Agropreneurial support – through this, young agropreneurs under the Youth Entrepreneurship in Agribusiness Project (YEAP), who have established businesses, would have access to N500 million loan to improve their agricultural enterprises.

 

“SMEs Stimulation Package – there will be provision of N500 million low interest rate loan for Small and Micro-Enterprises (SMEs), including traders, artisans and other small business operators, in the state through microfinance banks,” the governor had said.

 

Health Insurance and SAfER relief for civil servants where school teachers can get a car loan. Governor Seyi Makinde also said loans will not be removed from the source again.

 

However, SAfER package is a short-term plan and may not last. Governor Makinde has said “monthly revenue of Oyo State is below N10bn,” and the SAfER initiative is worth more than N5bn. The SAfER programme is an Oyo State Government initiative, and the 15-member committee and sub-committees were part of the SAfEr implementation process.

 

“The distribution of the food relief Package to 200,000 vulnerable households will commence this week, which will include the 3.000 bags of rice from the FG. Also, updates regarding the funds from the FG will be announced soon,” the OYSG feedback team told PIJAlance.

 

Read Also: Citizens’ Fate Lingers, Subsidy Palliatives Hang Imbalance in Some Nigeria’s States