According to President Bola Tinubu, in order to boost the economy and advance national development, the Federal Government chose to do away with gasoline subsidies and various foreign exchange rates.
During a Sunday broadcast, the president made this statement regarding the ongoing nationwide protest.
He stated that the Nigerian economy had been anaemic for decades and had taken a fall as a result of numerous misalignments that had stifled its growth.
“Our beloved country, Nigeria, reached a stage just over a year ago where we couldn’t afford to continue using temporary remedies to fix long-term problems for the sake of the present and our future generations”
He clarified that he had made the difficult choice to do away with gasoline subsidies and certain foreign exchange schemes that served to thwart the financial gain of rent-seekers and smugglers.
In addition, Tinubu stated that the measure stopped the excessive subsidies the nation had given to its neighbours at the expense of its citizens, which had collapsed the economy.
“These are the choices I had to make in order to undo the decades of poorly managed economy that did not benefit us.
“Yes, I agree that I am ultimately responsible. However, I can guarantee you that my entire attention is on providing the people with good governance”
He stated that during the last 14 months, his government has made considerable progress in rebuilding the economy’s foundation, preparing Nigerians for a future of prosperity and abundance.
“On the budgetary side, aggregate government revenues have more than doubled, exceeding N9.1 trillion in the first half of 2024 compared to the first half of 2023.
“This was due to our efforts to prevent leaks, implement automation, and creatively mobilise financing without putting more strain on the personnel.
The president said, “Productivity in the non-oil sector is gradually increasing, reaching new levels and taking advantage of the opportunities in the current economic ambience.” He said that during the preceding 13 months, his government had cut the amount of money used for debt service from 97% to 68%. Additionally, we have paid off valid outstanding foreign exchange debt totalling roughly $5 billion without having a negative effect on our programs.
“This has increased our financial independence and allowed us to spend more money on you, our residents, to fund critical social services such as education and healthcare.
“It has also led to our state, and local governments receiving the highest allocations ever in our country’s history from the Federation Account,”
The president stated that his administration had also initiated large infrastructure projects across the country. He said that the administration was trying to complete inherited projects vital to the country’s economic prosperity, such as roads, bridges, trains, power generation, and oil and gas development.
“Notably, the Lagos-Calabar Coastal Highway and Sokoto-Badagry Highway projects would connect 16 states, generating thousands of jobs and increasing economic output through trade, tourism, and cultural integration
.”Our once-declining oil and gas industry is resurging as a result of the measures I announced in May 2024 to close gaps in the Petroleum Industry Act.
“Last month, we raised oil output to 1.61 million barrels per day, and our gas assets are being given the attention they deserve.
“Investors are coming back, and we have already seen two Foreign Direct Investments signed of over half a billion dollars since then”.
The president stated that he met a country that relied completely on petrol and overlooked its petrol resources to power the economy.
He continued by saying that the government was also subsidising and paying for its use with its hard-earned foreign cash.
“To solve this, we started our Compressed Natural Gas Initiative (CNG) right away in order to power our transportation economy and save expenses.
“This will save more almost N2 trillion per month on PMS and AGO imports, allowing us to invest more in healthcare and education. “To this end, we will be distributing a million kits of extremely low or no cost to commercial vehicles that transport people and goods and who currently consume 80 per cent of the imported PMS and AGO,” according to him.
The president stated that his government had begun the distribution of conversion kits and the establishment of conversion centres across the country in collaboration with the private sector.
According to Tinubu, the CNG program will help control inflation and save transport costs by about 60%. He was adamant that by establishing the student loan program, his administration had demonstrated its commitment to the younger generation.
“So far, N45.6 billion has been processed for payment to students and their institutions. “I encourage more of our vibrant youth population to take advantage of this opportunity,”
Tinubu also stated that his administration established the Consumer Credit Corporation with over N200 billion to assist Nigerians in acquiring basic products without immediate cash payments, hence making life easier for millions of households.
This, he claimed, would curb corruption by eliminating cash and opaque transactions. “This week, I directed the release of an additional N50 billion each for NELFUND (the student loan) and Credit Corporation from the EFCC’s proceeds of crime.
“In addition, we have secured 620 million dollars through the Digital and Creative Enterprises (IDiCE) program, which aims to empower our youth by creating millions of IT and technical employment that will enable them to compete globally.
“Among these schemes is the 3 million Technical Talents scheme.Unfortunately, one of the digital centres was vandalised during the Kano protests.”What a shame!” he remarked.
Tinubu also stated that the government has established the Skill-Up Artisans Programme (SUPA), the Nigerian Youth Academy (NIYA), and the National Youth Talent Export Programme (NATEP).
He added that 600,000 nanobusinesses had profited from nanogrants, and that more than N570 billion had been granted to the 36 states to increase livelihood assistance for their inhabitants. He said the scheme was projected to help an extra 400,000 nano-businesses.
Additionally, 75,000 applicants have been approved to begin receiving our N1 million micro and small business loans with single-digit interest rates this month.
In the last year, we have also built 10 MSME hubs, which have created 240,000 jobs, and five more hubs are in progress and will be ready by October this year.” In order to increase manufacturing production and spur growth . Tinubu claims that payments of N1 billion are also being made to major manufacturers under single-digit loans.
He said that since he enacted the National Minimum Wage last week, the lowest-paid employees would now be entitled to at least N70,000 per month.
According to Tinubu, he launched the first phase of the massive housing project of his administration, the Renewed Hope City and Estate in Karsana, Abuja, six months ago.
“This is the first of six projects we intend to implement across the country’s geopolitical zones. Each of these cities will have at least 1,000 housing units, with Karsana alone expected to supply 3,212 units.
“In addition to these city developments, we are creating Renewed Hope Estates in all states, each with 500 housing units. “Our goal is to finish 100,000 housing units in the next three years.
“This initiative is not only about providing homes but also about creating thousands of jobs across the nation as well as stimulating economic growth,” according to the president.
He also indicated that his administration was offering farmers incentives to improve food output at reasonable costs.
In accordance with this, he ordered that tariffs and other import duties be lifted on rice, wheat, maize, and sorghum.Tinubu stated that medications and other pharmaceutical and medical supplies would be included in the project for the next six months, first to assist drive down prices.
“I’ve been talking with our governors and key ministers to increase food production. We’ve distributed fertiliser. Our goal is to develop more than 10 million hectares of land to produce the food we eat.
“The federal government will offer the essential incentives for this program, while states will supply the land, putting millions of people to work and increasing food production. “In recent months, we have also ordered mechanised farming equipment such as tractors and planters worth billions of naira from the United States, Belarus, and Brazil.
“I can confirm to you that the equipment is on the way,”.
The president advised Nigerians not to let anyone misinform them about the country or claim that the government does not care about them.
Tinubu stated that, despite previous disappointments, Nigerians were now entering a new period called Renewed Hope.
“We are working hard for you, and the benefits will soon be obvious and tangible for everybody to see, feel, and enjoy”.
“Let’s work together to create a better future for ourselves and future generations.
“Let us choose hope over fear, unity over division, and progress over stagnation,” the President said.
He stated that the economy was improving and urged Nigerians not to cut off its oxygen. “Now that we have had democratic administration for 25 years, do not allow the opponents of democracy to exploit you to promote an unconstitutional agenda that would set us back on our democratic path.
“Forward always, backward never!”
He charged security personnel with maintaining peace, law, and order in accordance with the relevant human rights conventions, to which Nigeria is a signatory.
Economic Justification
The abolition of fuel subsidies and foreign exchange rate adjustments is presented as a necessary step to address long-term structural issues in Nigeria’s economy.
Tinubu argues that these subsidies have been a financial drain, benefiting rent-seekers and smugglers more than the Nigerian people.
The decision is portrayed as a difficult but essential move to redirect resources towards sustainable economic growth.
Bottom Line
Overall, Tinubu’s address seeks to reassure Nigerians of his administration’s commitment to transformative economic reforms and social development.
By addressing the challenges head-on and outlining a comprehensive vision for the future, he aims to build confidence in his leadership and the path forward for Nigeria.
