The federal government has released only N2 billion from the N5 billion it offered to each states as palliatives after its decision to remove petrol subsidy.

According to the minister of finance and coordinating minister for the economy, Wale Edun, the reason for releasing N2 billion is to prevent the obvious spike in inflation.

Edun, during a press briefing in Abuja on Friday, September 1, said the federal government was mindful of the results of inflation, and as such, decided to stagger the release of the palliative funds.

Wale Edun said the source of the fund is “a blend of grants to and borrowing by the state governments”.

The minister added: “The president is going to deliver a better life to Nigerians by encouraging investment that increases productivity that grows the economy and thereby creating jobs and reducing poverty.”

Earlier, the government announced a N5bn palliative for each state of the federation, including the Federal Capital Territory to cushion the impact of the removal of the petrol subsidy.

The governor of Borno State, Babagana Zulum, made the announcement in Abuja on Thursday when he spoke to State House correspondents at the end of a National Economic Council meeting.

Vice President Kashim Shettima presided over the meeting.