Akwa Ibom govt abandons food subsidy, introduces replacement

Governor Umo Eno of Akwa Ibom State has launched a free food programme for the vulnerable people of the state.

The new programme, meant to cushion the biting effects of the economic hardship across Nigeria, replaces the yet-to-take-off policy of subsidising food items earlier announced by his administration.

Addressing the people during the programme launch on Tuesday at Itam Market, a popular local market in Uyo, Governor Eno said the programme will provide food for the people in the rural communities.

The event was live streamed on Facebook.

Mr Eno likened the policy to the “New Deal,” an intervention programme introduced by former US President Franklin Roosevelt between 1933 and 1939, to bring economic relief to the American people during the Great Depression.

“We have come to launch Akwa Ibom new deal, which is aimed at mitigating and bringing down the high cost of staple food items, starting with garri, rice and beans that today seems to be beyond the reach of the vulnerable people,” Mr Eno said.

New policy

To mitigate the economic hardship faced by the people of the state after the removal of the petrol subsidy by President Bola Tinubu, the Akwa Ibom State Government established a Bulk Purchase Agency to buy food items in large quantities and retail to the vulnerable people at subsidised rates.

Mr Eno, while signing a bill establishing the agency, disclosed that the agency would sell three food items – rice, beans and garri at 10kg each to the vulnerable people in the state who are enrolled in the state social register.

The beneficiaries, Mr Eno had said, would pay 70 per cent of the cost of the items, while the government will pay (subsidised) 30 per cent, including five per cent service charge (interest) to the market agent, PREMIUM TIMES reported.

Mr Eno, however, appears to have abandoned the subsidy policy. The state government is now giving out 5kg of the three staple food items to the vulnerable people captured in the social register.

Each of the beneficiaries would receive 5kg of either rice, beans or garri.

“We decided to work with the market people all over Akwa Ibom. We want to partner with them to make sure food is made available to the people.

“We will give food vouchers to people whose names are in the social register, and then they will go to any market and redeem the voucher.

“The agent at the redemption centres will collate the vouchers, take them to Bulk Purchase Agency and they will be paid their money within 72 hours,” he said.

Mr Eno said there is no guarantee that a beneficiary will get three vouchers at once. He told the people of the state to return to farms and grow food in order to sustain the free food programme.

“The Bulk Purchasing Agency is an interventionist agency; we can intervene wherever we feel. We can intervene in cement, iron rods and anything to make sure that we take distributorship from the source, bring the goods and give to market people to sell and pay money to the government,” he said, adding that the agency will not deal on rice, beans and garri only.

N1.5 billion interest-free loan for traders

The governor, at the occasion, announced a N1.5 billion interest-free loan for traders in the state. A microfinance bank will manage the loan, he said.

He promised to construct a park, solar lights, borehole water, drainages and toilets in the market.

“Commissioner for works, you’ve heard what I said. My words must not fall to the ground. This work must start next week.

“When the work is complete, the deal is that there will be no street trading. The day I commission the projects, this street trading must stop that day,” Mr Eno said in a market where traders display wares on the highway, obstructing the free flow of traffic.