10 promises Tinubu made in his broadcast
Less than 48 hours before a nationwide strike by the Nigeria Labour Congress (NLC), President Bola Tinubu, on Monday, July 31, 2023, addressed the country for the second time since he was sworn in as Nigeria’s 16th president.
Since assuming office, Tinubu’s economic reforms from the removal of fuel subsidy to the unification of the naira, have resulted in high cost of living and eroded purchasing power as inflation rose to 22.79% according to the National Bureau of Statistics (NBS).
In his speech, the President assured that his administration is committed to improving the lives of Nigerians through a long-lasting economic strategy that will transform the economy “by fighting the major imbalances that had plagued our economy.”
Here are 10 things Tinubu said:
Student Loan
Early today, Dele Alake, Tinubu’s Special Adviser on Special Duties and Communication, announced that the federal government has removed all restrictions surrounding the procurement of student loans. Recall that on June 12, 2023, Neusroom reported that President Tinubu signed into law the Student Loan Act, sponsored by Femi Gbajabiamila, the former Speaker of the House of Representatives in the 9th Assembly, who is now Tinubu’s chief of staff. However, the Act was criticised as some Nigerians pointed out that some of the requirement for the procurement of the loan was unfavorable to the common man.
In his speech, Tinubu said, “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.”
Improve production:
To strengthen the manufacturing sector, and 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 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 a maximum of 60 months repayment for long-term loans and 12 months for working capital.
Support Small Scale Business
Our administration recognises the importance of micro, small and medium-sized enterprises and the informal sector as drivers of growth. We are going to energise this very important sector with N125 billion.
Out of the sum, we will spend N50 billion on a 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.
Start-ups to get between 500k and one million
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 N1million at 9% interest per annum and a repayment period of 36 months.
Fight to improve food security
In the short and immediate terms, we will ensure staple foods are available and affordable. To this end, I have ordered the release of 200,000 Metric Tonnes of grains from strategic reserves to households across the 36 states and FCT to moderate prices. We are also providing 225,000 metric tonnes of fertilizer, seedlings and other inputs to farmers who are committed to our food security agenda.
Sustainable Agriculture
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 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.
Improve health through Infrastructure Support Fund for the States
It is in the light of this that I approved the Infrastructure Support Fund for the States. This new Infrastructure Fund will enable States to intervene and invest in critical areas and bring relief to many of the pain points as well as revamp our decaying healthcare and educational Infrastructure. The fund will also bring improvements to rural access roads to ease evacuation of farm produce to markets. With the fund, our states will become more competitive and on a stronger financial footing to deliver economic prosperity to Nigerians.
Subsize transportation
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.
New Minimum Wage:
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.
What money saved from fuel subsidy will be used for
In a little over two months, we have saved over a trillion Naira that would have been squandered on the unproductive fuel subsidy which only benefitted smugglers and fraudsters. That money will now be used more directly and more beneficially for you and your families.
