…..to support real, agric sectors with over N700bn
…..saves N1trn on fuel subsidy removal
President Bola Ahmed Tinubu on Monday unveiled sundry policy and funding measures aimed at mitigating the current hardships of the citizenry, especially those triggered by the fuel subsidy-removal measure, moderating the inflation rate, boosting industrial activities and job creation with the attendant positive implications for the nation’s economy..
The President, who spoke on the measures in his national address to Nigerians, specifically justified the recent fiscal and monetary policy measures initiated by his administration and pointed out that the measures were introduced to end years of abuses that had characterized the nation’s public finance sysem, ensure fiscal prudence, alleviate poverty and reposition the economy on the path of sustainable growth.
For instance, Tinubu lamented that for many several years, the fuel subsidy had remained a key source of stealing of public funds into the deep pockets and lavish bank accounts of a select group of individuals and costing Nigerians trillions of Naira yearly, which should have been better spent on public transportation, healthcare, schools, housing and even national security. Instead, it was.
He also explained that the multiple exchange rate system that had been established became nothing but a highway of currency speculation which also facilitated the diversion of money that should have been used to create jobs, build factories and businesses for millions of people.
Tinubu said: “Our economy is going through a tough patch and you are being hurt by it. The cost of fuel has gone up. Food and other prices have followed it. Households and businesses struggle. Things seem anxious and uncertain. I understand the hardship you face. I wish there were other ways. But there is not. If there were, I would have taken that route as I came here to help not hurt the people and nation that I love.
“What I can offer in the immediate is to reduce the burden our current economic situation has imposed on all of us, most especially on businesses, the working class and the most vulnerable among us.
“Already, the Federal Government is working closely with states and local governments to implement interventions that will cushion the pains of our people across socio-economic brackets”, he added.
He recalled that earlier this month, he signed four Executive Orders in keeping with his electoral promise to address unfriendly fiscal policies and multiple taxes that are stifling the business environment, stressing that the Executive Orders on suspension and deferred commencement of some taxes will provide the necessary buffers and headroom to businesses in manufacturing sector to continue to thrive and expand.
According to him, to strengthen the manufacturing sector, increase its capacity to expand and create good paying jobs, the government is going to spend N75 billion between July 2023 and March 2024 which will be committed to fund 75 enterprises with great potential to kick-start a sustainable economic growth, accelerate structural transformation and improve productivity.
President Tinubu also hinted of plans by the administration to support micro, small and medium-sized enterprises and the informal sector with an additional N125 billion in recognition of the importance of subsector as drivers of growth.
He explained that the target of his administration was to give N50,000 each to 1,300 nano business owners in each of the 774 local governments across the country with the attendant positive implications for the nation’s financial inclusion by onboarding beneficiaries into the formal banking system.
Other measures the President spoke on to revitalize the economy and improved the socio-economic well-being of millions of Nigerians include the funding of 100,000 MSMEs and start-ups with N75 billion, release of 200,000 metric tonnes of grains from strategic reserves to households across the 36 states and FCT to moderate prices and provision of 225,000 metric tonnes of fertilizer, seedlings and other inputs to farmers who are committed to our food security agenda.
He expatiated: “Our plan to support cultivation of 500,000 hectares of farmland and all-year-round farming practice remains on course. To be specific, N200 billion out of the N500 billion approved by the National Assembly will be disbursed.
“Our administration will invest N50 billion each to cultivate 150,000 hectares of rice and maize.
-N50 billion each will also be earmarked to cultivate 100,000 hectares of wheat and cassava”, Tinubu assured.
On the fuel subsidy removal gains, Tinubu disclosed that his administration had saved at least N1 trillion on the fiscal measure he announced on assumption of office and assured Nigerians that savings from the painful but inevitable fiscal measure would be judiciously utilized in such a way that ordinary Nigerians enjoy what the fund will be utilized on.
