President Bola Ahmed Tinubu has assured Nigerians that he would eschew economic jargon and complex concepts, choosing instead to communicate in plain, clear language so that every citizen could understand and appreciate the direction of the country’s economic journey.
Addressing the fuel subsidy issue during the nationwide broadcast on Monday, President Tinubu emphasised that the subsidy had outlived its usefulness and had become a significant burden on the nation’s finances.
He said trillions of Naira were being spent on the subsidy annually, funds that could have been better allocated to crucial sectors like public transportation, healthcare, education, housing, and national security, saying that these resources should benefit the people, not a select group of powerful individuals.
He pointed out that the undue influence of a small, unelected elite was a threat to the fairness of the economy and the integrity of democratic governance. In the pursuit of a true democracy, the President emphasised that the power of money should never hold sway over the hopes and aspirations of the majority.
To address the major imbalances in the economy and fulfill his promise of long-term reform, the President facilitated the removal of the fuel subsidy and the end of the multiple exchange rate system that encouraged currency speculation.
While acknowledging the current economic situation was tough and the hardship faced by citizens due to the rising fuel prices and subsequent inflation, the President, however, offered hope by outlining a series of interventions designed to alleviate the immediate burden on businesses, the working class, and the vulnerable segments of society.
Among the measures announced by the president include the N75 billion investment from July 2023 to March 2024 to fund 75 manufacturing enterprises, promoting sustainable economic growth, structural transformation, and improved productivity; boosting micro, small, and medium-sized enterprises (MSMEs) with N125 billion to provide conditional grants to 1 million businesses and offer loans to 100,000 MSMEs and startups.
Other measures include the release of 200,000 metric tonnes of grains from strategic reserves and providing 225,000 metric tonnes of fertilizers, seedlings, and inputs to farmers to maintain food affordability; N200 billion investment to cultivate 150,000 hectares each of rice, maize, wheat, and cassava, leveraging small-holder farmers and private sector players; and infrastructure support fund for states to enable states to invest in critical areas, revamp healthcare and educational infrastructure, and improve rural access roads.
President Tinubu also said plans are underway to use N100 billion to acquire 3000 CNG-fuelled buses for mass transit at a more affordable rate, as well as working with labour unions to introduce a new national minimum wage for workers.
The President acknowledged the temporary pain brought on by the subsidy removal but urged citizens to see the bigger picture and have faith in the government’s ability to deliver on its promises saying that the savings from the subsidy removal will be redirected to benefit the people directly, improving education affordability and providing loans to higher education students.
