In a live national broadcast to the nation, Nigeria’s president, Bola Ahmed Tinubu, has spoken about his plans to revive the country’s economy and the various initiatives that his government has established to improve the lives of Nigerians. In the broadcast, the president also gave reasons for the removal of the fuel subsidy scheme that had gulped huge sums of the country’s funds since 1977.
In his words; “this once beneficial measure had outlived its utility. The subsidy cost us trillions of Naira yearly. Such a vast sum of money would have been better spent on public transportation, healthcare, schools, housing and even national security. Instead, it was being funnelled into the deep pockets and lavish bank accounts of a select group of individuals. This group had amassed so much wealth and power that they became a serious threat to the fairness of our economy and the integrity of our democratic governance”.
The national broadcast comes as the country battles high cost of living and threats of protest by labour unions.
The president’s national broadcast also touched on the economy, education and other important topics that are of vital importance to Nigerians.
President Tinubu asked Nigerians to be patient as all the policies his administration is implementing are for the good of the.
The Nigerian leader said he understood the pains and sufferings that the people were facing since the removal of fuel subsidy and due also to his government’s economic policies. He, however, assured that the government has put several measures in place to ease the pains felt.
These measures include four Executive Orders signed earlier in July to address unfriendly fiscal policies and multiple taxes that the president said “are stifling the business environment”. According to him, “these Executive Orders on suspension and deferred commencement of some taxes will provide the necessary buffers and headroom to businesses in the manufacturing sector to continue to thrive and expand”.
The president explained that his government will “spend N75 billion between July 2023 and March 2024 to strengthen the manufacturing sector, increase its capacity to expand and create good-paying jobs”.
“Our objective is to fund 75 enterprises with great potential to kick-start a sustainable economic growth, accelerate structural transformation and improve productivity. Each of the 75 manufacturing enterprises will be able to access N1billion credit at 9% per annum with a maximum of 60 months repayment for long-term loans and 12 months for working capital”, he said.
President Tinubu noted that his administration recognised “the importance of micro, small and medium-sized enterprises and the informal sector as drivers of growth”. To this end, he said his government would “energise this very important sector with 125 billion Naira. Out of the sum, we will spend 50 billion Naira on Conditional Grant to 1 million nano businesses between July 2023 and March 2024. Our target is to give 50,000 Naira each to 1,300 nano business owners in each of the 774 local governments across the country. Ultimately, this programme will further drive financial inclusion by onboarding beneficiaries into the formal banking system”.
“In like manner”, he added, “we will fund 100,000 MSMEs and start-ups with 75 billion Naira. Under this scheme, each enterprise promoter will be able to get between N500,000 to 1 million Naira at 9% interest per annum and a repayment period of 36 months”.
On his efforts to ensure that prices of food items remain affordable, president Tinubu said the government has had a multi-stakeholder engagement with various farmers’ associations and operators within the agricultural value chain and that in the short and immediate terms, the government would ensure staple foods are available and affordable.
The steps taken, according to him, include an order for the “release of 200,000 Metric Tonnes of grains from strategic reserves to farmers across the 36 states and FCT to moderate prices”.
The government is “also providing 225,000 metric tonnes of fertilizer, seedlings and other inputs to farmers who are committed to our food security agenda”, he noted.
Tinubu also said that a plan to support the cultivation of 500,000 hectares of farmland and all-year-round farming practice remains on course. He also stated that “200 billion Naira out of the 500 billion Naira approved by the National Assembly will be disbursed as follows: our administration will invest 50 billion Naira each to cultivate 150,000 hectares of rice and maize. 50 billion Naira each will also be earmarked to cultivate 100,000 hectares of wheat and cassava”.
Tinubu said that part of his pledge to improve welfare and living conditions includes a collaboration with the Labour unions to introduce a new national minimum wage for workers and a plan to roll out buses “across the states and local governments for mass transit at a much more affordable rate. We have made provision to invest 100 billion Naira between July 2023 and March to acquire 3000 units of 20-seater CNG-fuelled buses”.
These buses will be shared with
major transportation companies in the states using the intensity of travel per capital. Participating transport companies will be able to access credit under this facility at 9% per annum with 60 months repayment period, the president said.
Reactions to the president’s speech have been mixed, with some praising the steps as well laid out but insisting that they should be expedited to reverse the current challenges faced by many Nigerians.
