I n a significant move to bolster economic support, President Bola Tinubu announced the release of N570 billion to the 36 states of Nigeria. This allocation aims to enhance livelihood support programs across the nation. The President also unveiled a new initiative focusing on Compressed Natural Gas (CNG) to address the country's dependence on imported petroleum products.
Financial Support and Economic Measures
The N570 billion is designated for expanding livelihood support and assisting nano-businesses. President Tinubu revealed that 600,000 nano-businesses have already benefited from grants, with an additional 400,000 expected to receive support. This initiative is part of the government’s broader strategy to alleviate economic hardship and stimulate local businesses.
Tinubu also highlighted the substantial financial burden of importing petroleum products. Nigeria reportedly spends N2 trillion monthly on Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel). To mitigate this, the administration has launched a CNG initiative. This program includes distributing one million conversion kits to commercial vehicles, with the goal of reducing transportation costs by approximately 60%. The initiative is expected to alleviate inflationary pressures and reduce the reliance on imported fuels.
Revenue and Debt Management
The President’s address noted a significant increase in fiscal revenue, with total receipts reaching N9.1 trillion in the first half of 2024. This figure represents more than double the revenue from the same period in the previous year. The increase is attributed to improved measures against financial leakages, the introduction of automation, and innovative funding strategies.
Additionally, the Federal Government has made strides in managing the national debt. The debt service-to-revenue ratio has decreased from 97% in 2023 to 68% in 2024. Tinubu reported that Nigeria has cleared approximately $5 billion in outstanding foreign exchange obligations, which has allowed for increased investment in critical social services such as education and healthcare.
Response to Protests
President Tinubu also addressed the ongoing nationwide protests that began on August 1, 2024, driven by economic hardship and dissatisfaction with government policies. The administration is prepared to engage with protesters and address their concerns, emphasizing a commitment to resolving the issues raised.
Economic Outlook
The President highlighted improvements in productivity within the non-oil sector, which is capitalizing on current economic conditions. He emphasized the government’s efforts to reduce the national debt burden and invest in essential services, aiming for a more stable and prosperous economic future.
Context
Despite being Africa’s largest oil producer, Nigeria faces challenges due to inadequate domestic refining capacity. The CNG initiative is a strategic effort to decrease the country’s reliance on imported petroleum products and address associated economic pressures.
The developments come as the country grapples with economic challenges and public dissatisfaction, reflecting the broader efforts of the administration to navigate and mitigate ongoing issues.
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