Fuel Subsidy: Over a Trillion Naira Saved In Two Month- Tinubu
•Highlights of President’s Address On Nigeria’s Economic Challenges
In a highly anticipated national broadcast, President Bola Tinubu addressed the pressing economic challenges faced by Nigeria and unveiled his vision for a more productive and fair economy. Standing firm on his conviction, the President explained the necessity of removing the long-standing fuel subsidy, which he stated had become a financial burden, costing the nation trillions of Naira annually. Instead, he emphasized redirecting these funds to crucial sectors such as public transportation, healthcare, education, housing, and national security. President Tinubu also expressed his commitment to dismantling the influence of powerful unelected groups, ensuring that the people’s welfare remains the top priority in the nation’s democratic governance.
The President’s address outlined measures to alleviate the hardship caused by recent policy changes. Notably, a N75 billion fund was earmarked to bolster the manufacturing sector and create job opportunities, while a separate N125 billion allocation aimed to empower micro, small, and medium-sized enterprises (MSMEs) and nano businesses. The government’s focus on ensuring food security through the release of strategic grain reserves and the cultivation of farmland further resonated with the populace. Moreover, President Tinubu’s assurance of a new national minimum wage in collaboration with labor unions provided hope to the working class. As the nation embraces the President’s vision, citizens unite in the belief that a brighter future lies ahead, guided by his unwavering dedication to steer Nigeria toward economic prosperity and equitable growth.
- Removal of Fuel Subsidy: President Tinubu explained that the fuel subsidy had to go as it cost the nation trillions of Naira yearly, and the funds could be better utilized for public transportation, healthcare, education, housing, and national security.
- Multiple Exchange Rate System: The President criticized the multiple exchange rate system, which led to currency speculation and diverted money that could have been used for job creation and economic development.
- Economic Imbalances: Tinubu emphasized his commitment to fighting major imbalances in the economy, addressing the influence of powerful unelected groups, and ensuring that the people, not money, are sovereign in a true democracy.
- Measures to Alleviate Hardships: The President acknowledged the tough economic situation and pledged interventions to cushion the impact on businesses, the working class, and the vulnerable.
- Support for Manufacturing Sector: A N75 billion fund was announced to support 75 manufacturing enterprises with long-term loans at a 9% interest rate per annum to improve productivity and create jobs.
- Support for Micro, Small, and Medium-sized Enterprises (MSMEs): A N125 billion fund was allocated to energize the MSME sector, providing conditional grants to 1 million nano businesses and credit for 100,000 MSMEs and start-ups.
- Food Security Initiatives: Measures were outlined to ensure staple foods remain affordable, including the release of grains from strategic reserves and support for the cultivation of farmland.
- Infrastructure Support Fund: President Tinubu approved an Infrastructure Support Fund for states to invest in critical areas, improve healthcare and educational infrastructure, and enhance rural access roads.
- Mass Transit System: A N100 billion investment was planned to acquire 3000 CNG-fuelled buses for mass transit at an affordable rate, benefiting major transportation companies in the states.
- New National Minimum Wage: The President assured that a new national minimum wage for workers was being worked on in collaboration with labor unions.
- Commitment to the People: President Tinubu expressed his commitment to improving the welfare and living conditions of the people, and urged them to look beyond temporary pains for a better future.
- Removal of Fuel Subsidy Savings: The President highlighted that over a trillion Naira was saved in a little over two months by removing the unproductive fuel subsidy, which would be used more directly and beneficially for the people.
- Vision for the Future: President Tinubu assured the people that the nation would exit the darkness of economic challenges to enter a new and glorious dawn.