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 Subsidy removal gains not reflected in Bayelsa allocation – Official

Subsidy removal gains not reflected in Bayelsa allocation – Official

The Bayelsa State Government said that revenue saved from the Federal Government’s fuel subsidy removal policy had not been reflected in its monthly allocation.

It, however, confirmed receipt of N2 billion as fuel subsidy removal palliative fund from the Federal Government.

The Technical Adviser to the state Governor, Mr Timipre Seipulou, stated these during the transparency briefing for the months of June and July 2023 held in Yenagoa at the weekend.

President Bola Tinubu had in his inauguration address on May 29 announced the removal of the petrol subsidy, a decision that led to an increase in the price of the product and costs of goods and services in the country.

In July, Tinubu declared in his first nationwide broadcast that the Federal Government had saved N1 trillion in two months that would have been spent on the payment of the fuel subsidy.

Seipulou said the figures that had accrued to Bayelsa from the Federation Account Allocation Committee did not meet the state’s expectations on the gains of the petrol subsidy removal policy.

He said, “It is worthy of note that with the fuel subsidy removal, our allocation would have increased materially but the figures we have got have not reflected that expectation. If you look at the month of April, our FAAC allocation was about N20 billion, May was N21bn, June was N19bn and July N21bn.

“The question is: what is the effect of the fuel subsidy removal on our funding? If that interpretation is taken, then the derivation factor will be very, very much understated.”

According to him, the state governor, Douye Diri, is collaborating with other state governments to ensure that the anomaly is addressed.

On the N2bn palliative fund, he said that Bayelsa received its share in August, adding that the government was working on a comprehensive programme on its expenditure.

Seipulou said, “For the fuel subsidy palliative (fund), the state government has received N2bn. This transparency briefing is for June and July. When the transparency briefing for August will be given, you will see the report (on the expenditure of the N2bn) because the money was received in August. The government is already making efforts to come up with a full programme on the fuel subsidy palliative to the state.”(PUNCH NEWS)

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