The Federal Government has said its transport subsidy payment of N5,000 to the poorest Nigerians would be transferred digitally for a minimum period of six months and a maximum of 12 months.
The government said this will happen after the removal of fuel subsidy in June 2022 in order to give people time to adjust.
Minister of Finance, Budget, and National Planning, Zainab Ahmed, made this known on Wednesday while briefing State House correspondents at the end of the Federal Executive Council meeting chaired by President Muhammadu Buhari.
She stated that as at the last Federation Account Allocation Committee’s (FAAC) meeting, fuel subsidy cost the country nearly N250 billion per month and three trillion annually as the NNPC remitted near-zero naira.
According to her, the current situation has made the removal expedient, she added that the support fund upon approval from FAAC for 20-40 million Nigerians will not be done in cash, but sent digitally.
She further encouraged states to financially contribute to the N5,000 relief fund to improve the productive abilities of Nigerians.
On Tuesday the minister said Nigeria will remove fuel subsidies by 2022 and replace same with a N5000-a-month transportation grant to the poorest Nigerians.
Speaking at the launch of the World Bank Nigeria Development Update (NDU), the Minister said the grant will go to about 30 to 40 million Nigerians who make up the poorest population of the country.
She averred that the final number of beneficiaries will depend on the resources available after the removal of the fuel subsidy.