Borno State Governor Babagana Zulum stated on Thursday that Nigeria has approved the allocation of 180 billion naira (approximately $235 million) to its 36 states for the purchase of rice and maize to alleviate food shortages across the country and the hardships caused by reforms. Zulum made the announcement following a National Economic Council meeting chaired by the Vice President in Abuja, noting that each state will receive five billion naira in the form of grants and a two-year loan to purchase 100,000 trucks of rice and 40,000 trucks of maize.
President Bola Tinubu has embarked on the most ambitious reforms in Nigeria in decades, including the removal of a popular but costly fuel subsidy and the devaluation of the naira, measures aimed at promoting growth. However, these actions have fueled inflation, which surged to its highest level in 18 years in July. Food prices have risen due to widespread insecurity, flooding in agricultural areas, a weak currency, and high transportation costs, exacerbating the country’s cost-of-living crisis.
Tinubu has faced pressure from unions to support families and economic activities. Labor unions criticized the removal of the fuel subsidy without measures to curb rising prices. Last month, Tinubu unveiled a 500 billion naira package to boost employment and instructed the distribution of over 200,000 tons of grains to families to alleviate hardships. He mentioned that savings from subsidy funds would be used to create a fund for infrastructure enhancement. Furthermore, Nigeria is set to release growth data for the second quarter on August 25, which will be the first data published following the commencement of Tinubu's reforms.
