….Says Aggregate Revenues Rise To Over N9.1Trn in H1 2024
President Bola Tinubu has projected that the implementation of the recently launched Compressed Natural Gas e (CNG) Initiative will reduce transportation cost by about 60 per cent with the attendant positive implications for all stakeholders, especially ordinary Nigerians.
The President, who made the forecast on Sunday in his national address on the ongoing #EndBadGovernance protests in the country, said the CNG initiative was launched to optimize the benefits of the gas endowment and by so doing, reduce to the barest minimum the foreign exchange (FX) being paid to subsidize its use nationwide.
According to him, the CNG initiative will save over two trillion Naira a month, being used to import PMS and AGO and free up the resources for more investment in healthcare and education.
Tinubu, who used the occasion to highlight some of the achievements recorded by his administration over the past 14 months, hinted that ensure the actualization of the goals, the Federal Government would be distributing a million kits of extremely low or no cost to commercial vehicles that transport people and goods and who currently consume 80% of the imported PMS and AGO.
In addition, he said that government had started the distribution of conversion kits and setting up of conversion centres across the country in conjunction with the private sector, pointing out that the administration believes that the CNG initiative will reduce transportation costs by approximately 60 per cent and help to curb inflation.
Expatiating on the administration’s scorecard, the President said: “In the past 14 months, our government has made significant strides in rebuilding the foundation of our economy to carry us into a future of plenty and abundance. On the fiscal side, aggregate government revenues have more than doubled, hitting over 9.1 trillion Naira in the first half of 2024 compared to the first half of 2023 due to our efforts at blocking leakages, introducing automation, and mobilising funding creatively without additional burden on the people. Productivity is gradually increasing in the non-oil sector, reaching new levels and taking advantage of the opportunities in the current economic ambience
“My dear brothers and sisters, we have come this far. Coming from a place where our country spent 97% of all our revenue on debt service; we have been able to reduce that to 68% in the last 13 months. We have also cleared legitimate outstanding foreign exchange obligations of about $5billion without any adverse impact on our programmes.
“This has given us more financial freedom and the room to spend more money on you, our citizens, to fund essential social services like education and healthcare. It has also led to our State, and Local Governments receiving the highest allocations ever in our country’s history from the Federation Account.
“We have also embarked on major infrastructure projects across the country. We are working to complete inherited projects critical to our economic prosperity, including roads, bridges, railways, power, and oil and gas developments. Notably, the Lagos-Calabar Coastal Highway and Sokoto-Badagry Highway projects will open up 16 connecting states, creating thousands of jobs and boosting economic output through trade, tourism and cultural integration
“Our once-declining oil and gas industry is experiencing a resurgence on the back of the reforms I announced in May 2024 to address the gaps in the Petroleum Industry Act. Last month, we increased our oil production to 1.61million barrels per day, and our gas assets are receiving the attention they deserve. Investors are coming back, and we have already seen two Foreign Direct Investments signed of over half a billion dollars since then”, Tinubu added.
He also spoke on sundry initiatives by his government to enhance the ICT skills of the youths such as the introduction of the student loan scheme, and the Digital and Creative Enterprises (IDiCE) – a programme to empower the young people, creating millions of IT and technical jobs that will make them globally competitive, amongst others.
