President Bola Tinubu proposed numerous palliative programs during his nationwide address on Monday to mitigate the effects of his administration’s elimination of petrol subsidies.
The initiatives come in the aftermath of rising hardship as a result of Tinubu’s inauguration-day pronouncement that “fuel subsidies are no longer available.”
Prices of Premium Motor Spirit (PMS), or fuel, have tripled from less than N200 per litre in the two months since he assumed office on May 29, prompting the Nigeria Labour Congress (NLC) to call for a protest.
In an apparent attempt to ease the suffering of millions of Nigerians, the President announced in a national broadcast that relief has arrived for farmers, small business owners, and manufacturers, among others.
Here are 6 key points from President Tinubu’s speech
1. FG has saved over N1 trillion from subsidy removal
According to the President, the Federal Government (FG) has saved “over a trillion Naira that would have been squandered on the unproductive fuel subsidy that only benefited smugglers and fraudsters” since the elimination.
Tinubu stated that the funds will now be used more directly and advantageously “for you and your families.” The education sector is one of the savings targets.
“We shall fulfill our promise to make education more affordable to all and provide loans to higher education students who may need them. No Nigerian student will have to abandon his or her education because of lack of money,” he said.
“Our commitment is to promote the greatest good for the greatest number of our people. On this principle, we shall never falter. We are also monitoring the effects of the exchange rate and inflation on gasoline prices. If and when necessary, we will intervene.”
2. MSMEs
The President emphasized the administration’s acknowledgment of micro, small, and medium-sized businesses, as well as the informal sector, as growth drivers.
Tinubu then announced a N125 billion investment to revitalize “this very important sector.”
“Out of the sum, we will spend N50 billion on Conditional Grant to 1 million nano businesses between now and March 2024. Our target is to give N50,000 each to 1,300 nano business owners in each of the 774 local governments across the country,” he said.
“Ultimately, this programme will further drive financial inclusion by onboarding beneficiaries into the formal banking system. In like manner, we will fund 100,000 MSMEs and start-ups with N75 billion.
“Under this scheme, each enterprise promoter will be able to get between N500,000 to N1 million at 9% interest per annum and a repayment period of 36 months.”
3. N75 billion palliative for the manufacturing sector
The manufacturing sector would receive N75 billion in relief, with 75 enterprises benefiting over a nine-month period from the third quarter of 2023 to the first quarter of next year.
“To strengthen the manufacturing sector, increase its capacity to expand and create good-paying jobs, we are going to spend N75 billion between July 2023 and March 2024.
“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 N1 Billion credit at 9% per annum with maximum of 60 months repayment for long term loans and 12 months for working capital.”
4. FG to boost agriculture
Tinubu said that N200 billion would be invested as part of its intentions to assist the cultivation of 500,000 hectares of farmland, and all-year-round farming practice will continue.
He said, “To be specific, N200 billion out of the N500 billion approved by the National Assembly will be disbursed as follows:
“-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.”
5. Affordable transportation
According to the President, FG would deploy buses across states and local governments for public transit at a significantly lower cost.
He said “Part of our programme is 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 N100 billion between now and March 2024 to acquire 3000 units of 20-seater CNG-fuelled buses.
“These buses will be shared to 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.”
6. Salary review
During his address to Nigerians, President Tinubu talked about salary review, the minimum wage is currently N30,000 which is considered really low due to the economic crisis.
He said, “In the same vein, we are also working in collaboration with the Labour unions to introduce a new national minimum wage for workers. I want to tell our workers this: your salary review is coming.
“Once we agree on the new minimum wage and general upward review, we will make budget provision for it for immediate implementation.”
The president then saluted private firms saying, “I want to use this opportunity to salute many private employers in the Organised Private Sector who have already implemented general salary review for employees.”
