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Tag: Fuel Subsidy Removal

  • Subsidy: Nigerians face difficulty in accessing food items – Expert

    Subsidy: Nigerians face difficulty in accessing food items – Expert

    Prof. Abdulazeez Lawal of the Department of Agricultural Economics and Farm Management of University of Ilorin (Unilorin) has submitted that removal of fuel subsidy and floating of the exchange rate has made many Nigerians face difficulty accessing food items.

    Lawal stated this in his paper presentation in Ilorin at the 244th Inaugural Lecture of University entitled: “Making Ends Meet With Food Security”.

    He quoted the Nigeria Bureau of Statistics as revealing that the consumer price index rose from 22.22 per cent to 24.41 percent between April and May 2023.

    “Food inflation rate rose from 24.61 percent in April to 24.82 per cent in May 2023. When compared to, on a year-on-year basis, this was 5.33 per cent point higher than 19.5 per cent recorded in May, 2022,” he said.

    The don, who teaches in the Faculty of Agriculture of  Unilorin, observed that an estimated 17 million people were at risk of food insecurity in October 2022.

    He stated that unless urgent actions are taken to address the continuing conflict, climate change, inflation and rising food prices, Nigeria would remain among the highest level countries facing acute food insecurity.

    Lawal postulated that one of the vital components of the food system globally is agriculture and it is also the most important economic sector with a high level socio-economic relevance for many countries.

    This, he said, is with respect to employment generation, nutrition and rural development.

    “In view of this, agriculture appears to be the only realistic driver of economic and social development in many countries in the near future.

    “Small holder farmers produce more than 80 per cent of the world food production. Ironically, across all countries, people living in rural areas are most exposed to food insecurity owing to limited access to food and financial resources,” he said.

    The expert observed that with a population of more than 200 million people, about 80 per cent of Nigerians depend on small scale agriculture for their food need.

    He advised on the need to improve agricultural production and rural livelihood activities necessary to boost food supplies and increase income of farming households.

    Lawal also advised government at all tiers for improved funding and effective implementation of food security programmes.

    “Government should design policy strategy that would encourage technology transfer as well as ensure the use of modern farming techniques by smallholder farmers,” he said.

    The agriculturist also urged the government to ensure security of lives and properties through development and peace building policies in handling issues in conflict affected areas

  • Fuel Subsidy Removal: FCTA begins distribution of palliatives to residents

    Fuel Subsidy Removal: FCTA begins distribution of palliatives to residents

    As part of efforts to cushion the effects of the removal of fuel subsidy in the country the Federal Capital Territory Administration (FCTA) on Tuesday, commenced the distributions of palliatives to poor and vulnerable residents of the territory.

    FCT Minister of State, Dr. Mariya Mahmoud, who performed the initial distribution of over 17,222 bags of rice, and 8,400 bags of maize on behalf of the Administration, assured residents that every deserving family in the six area councils and 17 chiefdoms of the FCT will receive the palliative items free of charge.

    Mahmoud added that aside from the provided food items which would be released in stages, the government was exploring other avenues to mitigate the impact of the fuel subsidy removal.

    “There is no doubt that the policy has had a ripple effect on transportation, inflation, and an overall burden on the citizenry.

    “It is in the realisation of these challenges that the Federal Government has been taking several measures to bring succour to Nigerians, amongst which is the release of assorted food items from the National Strategic Reserve for urgent distribution to Nigerians.

    “We will ensure that every deserving family in the FCT receives these items free of charge”, the minister said.

    She called on the residents to exercise prudence in their daily lives, noting that the administration of President Bola Tinubu, was committed to implementing measures to stabilize prices, encourage economic growth, and promote the prosperity and well-being of citizens.

    She, however, urged beneficiaries to use the food items wisely and endeavour to share with those who were most in need, stressing that the President was making efforts to reposition the economy to win the war against hunger and become self-sufficient in food production.

    On his part, the Permanent Secretary of the FCTA, Mr Olusade Adesola, who was represented by the Director of Operations, Planning and Strategy, Mr Samuel Attang, said the administration, working with other relevant arms, had put in place measures to monitor the distribution of the essential food items, to ensure that they reached targeted beneficiaries in all of the area councils.

    Similarly, the Mandate Secretary, Agriculture and Rural Development Secretariat, Lawan Geidam, said the secretariat would take the distribution of the palliative items very seriously, by ensuring that the palliatives reach all those for whom they were intended.

    “The secretariat has put in place an efficient and transparent distribution system to ensure that the process is fair, equitable, and devoid of any form of favouritism or discrimination”

    Geidam also commended what he described as the “tremendous efforts” of Nigerian farmers, in ensuring a steady supply of food despite challenges, stating that their hard work, dedication, and resilience had no doubt played a crucial role in cushioning the effects of the economic situation in the country.

    As we move ahead in the task of delivering the dividends of democracy, I am optimistic that the commitment, dedication and vision that have been demonstrated by the new FCT leadership, will pave the way for a transformative era that will bring forth self-sufficiency in food production,” he added.
  • Analysis: Key metrics that shaped President Tinubu’s First 100 Days

    Analysis: Key metrics that shaped President Tinubu’s First 100 Days

    President Bola Ahmed Tinubu’s first 100 days in office, have been marked by bold decisions aimed at addressing the country’s longstanding economic issues, but they have also brought immediate challenges for Nigerians.

    The Senior Special Assistant to the President on National Assembly Matters (Senate), Senator Abdullahi Gumel, pointing to various activities undertaken during this period, has lauded the President’s strong commitment to Nigeria’s renewed hope.

    Speaking at a news conference in Abuja, Gumel said: “The administration has stabilised the polity and reduced tensions associated with ethnic and religious agitations by better managing our diversity.

    “Tinubu ensured balance in all the appointments into key government positions including that of service chiefs from diverse parts of the country.

    The Fuel Subsidy Removal: A Controversial Move

    One of the defining actions of President Tinubu’s administration during his first 100 days was the removal of the fuel subsidy which he announced during his inaugural speech on May 29.

    The government views this as a necessary and courageous step to address a long-standing issue that has hindered economic growth.

    The Minister of Information and National Orientation, Mallam Mohammed Idris, noted that the fuel subsidy regime had hung over Nigeria like a “Sword of Damocles” for decades, stunting the nation’s growth and forcing it into borrowing.

    Gumel, also stressed that “Tinubu’s courage to announce fuel subsidy removal on May 29 shows his determination to put Nigeria on the path of economic growth and sustainability.”

    However, the government’s failure to implement a mitigation plan for the repercussions of fuel subsidy removal led to the Nigeria Labour Congress initiating a two-day warning strike on Tuesday, to protest the significant hardship faced by many households.

    Gumel pointed out that President Tinubu was well aware of the challenges this move would bring and is actively working to mitigate them: “The N5 billion released to state governments and other measures being put in place to ensure that the impact of the subsidy removal was minimized are all evidence that he means well for Nigerians.”

    Economic Realignment

    In addition to the fuel subsidy removal, President Tinubu took steps to realign the Nigerian economy by unifying the multiple foreign exchange markets, a move aimed at bringing transparency and consistency to currency exchange.

    This decision, which has peaked the exchange rate at N920/USD, was seen as a necessary step to address the complexities and inconsistencies in the foreign exchange system.

    President Tinubu’s first 100 days also saw a strong commitment to economic diversification.

    To this end, a Tax and Fiscal Reforms Committee was established with a mandate that includes simplifying the tax system, eliminating multiple taxes, streamlining business regulations, and addressing the annual tax gap of over 20 trillion Naira.

    This initiative aims to create a more business-friendly environment and stimulate economic growth.

    From the government’s perspective, other major highlights of President Tinubu’s 100 days in office include efforts to cushion the effects of subsidy removal include raising minimum wages, supporting local governments, and providing assistance to vulnerable citizens.

    Others include: plans for over 11,000 CNG buses for affordable public transportation and discussions on modular refineries, swift appointment of ministers and service chiefs, efforts to attract foreign investment.

    Key Economic metrics 

    A comparison of some key economic indicators over the period under review provides insights into the economic situation of the country and the implications for citizens.

    These metrics which defined President Tinubu’s 100 days in office include: exchange rate, inflation, crude oil price, oil production, and fuel price in the country pre and post May 29.

    1. Exchange Rate: From N462/US$1 to N920/US$1

    The significant depreciation of the Nigerian Naira against the US Dollar means that it now takes more Naira to purchase one US Dollar.

    What this means is that imported goods and services become more expensive, Nigerians traveling abroad will need more Naira to exchange for foreign currencies, making foreign trips more costly, businesses that rely on imported inputs may face increased production costs, potentially leading to higher prices for their products.

    2. Inflation: From 22.41 per cent to 24.08 per cent

    The rise in inflation indicates a general increase in the prices of goods and services within President Tinubu’s first 100 days, resulting in reduced purchasing power for consumers and higher living costs, including food, housing, and healthcare expenses. Savings and fixed incomes also lose value.

    3. Crude Oil Production and Price:

    There was a slight decrease in oil production from 1.18 million barrels per day to 1.08 million barrels per day over the last 100 days even as crude oil prices rose from S$76 per barrel to US$92 per barrel, representing an opportunity for higher government revenue from oil exports and enhanced ability to fund infrastructure, social programs, and public services.

    4. GDP Growth Rate: From 2.31 per cent to 2.51 per cent

    While there was a modest increase in GDP growth, a stronger economy typically implies more job opportunities for citizens, increased investments and business activities and improved overall economic well-being.

  • Fuel Subsidy Removal: Ex-Senate President, Lawan speaks on challenges

    Fuel Subsidy Removal: Ex-Senate President, Lawan speaks on challenges

    President of the 9th Senate, Senator Ahmad Ibrahim Lawan, has called on Nigerians to be hopeful in the face of challenges caused by the removal of petrol subsidy removal by the federal government, saying they would not be permanent.

    Lawan made the appeal during the flagging-off the distribution of 9,000 bags of grains as palliatives to his constituents from 60 wards in six local government areas of Yobe North Senatorial District.

    According to a statement issued by the former Senate President’s Media Adviser, Ezrel Tabiowo, the intervention scheme which was undertaken by Senator Ahmad Ibrahim Lawan, SAIL Empowerment Foundation – held at Filin Katuzu in Bade Local Government Area of Yobe State, would also be extended to Muslim religious groups, Christian communities and persons with disabilities.

    The Yobe-born politician advised beneficiaries and every Nigerian not to relent in their prayers to God and be positive and hopeful that the present situation comes to an end.

    “It is not a permanent situation; it is a temporary setback. Sometimes, public policies come with unintended consequences that are the price we have to pay to have a good life.

    “So, we tarry a while and pray, as we continue to give support to our government at various levels. This is a situation that will not last for too long,” the former Senate President said.

    Also speaking to journalists at the venue of the event, Lawan sympathised with Nigerians over the high cost of living that trailed the removal of petrol subsidy.

    He expressed optimism that the policies of the President Bola Tinubu-led government would overtime yield the much desired result.

  • Gov. Obaseki and FG clash over subsidy removal

    Gov. Obaseki and FG clash over subsidy removal

    As the effects of subsidy removal continue to take a toll on the Nigerian populace, Governor Godwin Obaseki of Edo State has delivered a scathing critique of the federal government’s approach, asserting that they failed to develop a well-thought-out and workable strategy for the nation’s economic stability.

    Governor Obaseki’s remarks, made during a press conference in Benin City, captured the mounting frustrations of Nigerians grappling with the harsh realities of subsidy removal and harmonization of foreign exchange rates.

    Conveying his “shock and fear” over the government’s apparent lack of foresight in handling the aftermath of subsidy removal, Governor Obaseki pointed out that the move had caused immense suffering, particularly for the most vulnerable citizens.

    “The weakest and most vulnerable in our society, unfortunately, will carry a huge part of the burden of these policies,” Obaseki stated unequivocally.

    Boldly labelling the distribution process of palliatives as fraudulent, he added: “The government doesn’t seem to have a plan or solution on how to respond to the consequences of the policy measure put in place by their administration.”

    In response to Obaseki’s stark criticism, Minister of Information and National Orientation Mohammed Idris, defended the federal government’s actions, pointing out that it had received broad support from various quarters, including Nigerians, state governors, and international institutions.

    Idris noted that the removal of these subsidies was not a hasty or ill-considered move but rather a long-overdue step that aimed to rectify the chronic fiscal imbalance engendered by the subsidies.

    He said: “Nationally, decisions led by President Tinubu are based on foresight, with the primary aim of engineering a resilient and sustainable economy. This vision is consistently echoed within the National Economic Council, where significant economic decisions are made.

    “We want to clearly state that Edo State, alongside other 35 States plus FCT, can access more FAAC revenue, due only to the bold and courageous economic decisions taken by President Bola Tinubu since he assumed office. These decisions have been applauded across the globe because they are the decisions that need to be taken to reposition the national economy for better output”.

    The Minister also highlighted the tangible benefits that Edo State, under Obaseki’s leadership, had derived from the subsidy removal, stressing that the state had experienced a substantial increase in financial allocation, which could be channelled towards critical developmental projects.

    He urged Governor Obaseki to use these resources to drive impactful initiatives that would uplift the people of Edo State, rather than seek easy diversion from his own political challenges within the Peoples Democratic Party.

    Idris who questioned the timing and motive behind such an attack on the federal government’s policies, noted that Governor Obaseki had been conspicuously absent from crucial meetings of the National Economic Council (NEC), where economic decisions were made.

    The Minister suggested that Obaseki’s participation in these meetings could provide valuable insights and foster alignment with the collective vision for Nigeria’s economic future.

    “The Nigerian Government understands the current difficulties Nigerians are facing and is working very hard with the states and local governments to bring succour to our people.

    “President Tinubu is guiding our country through very challenging times. We are supremely confident that we will soon turn the corner into a prosperous future,” Idris said.

    “What is required at this time is for leaders at all levels to cooperatively bind together to make life better for Nigerians, not to play cheap politics that serves no better purpose,” Idris said.

  • “We mean well for Nigerians” – Senate President Akpabio

    “We mean well for Nigerians” – Senate President Akpabio

    The President of the Nigerian Senate, Godswill Akpabio, inadvertently stirred a controversy after a gaffe he made during a live-streamed plenary session went viral.

    Akpabio’s statement, in which he revealed the allocation of money to senators for their recess, ignited a wave of criticism and accusations.

    In the video clip, Akpabio while concluding the screening and confirmation of President Bola Tinubu’s ministerial nominees revealed that money has been sent to senators to ‘enjoy’ their recess which he termed a “holiday”, before adjourning plenary to 26th September.

    The Senate President’s comments about senators receiving money to “enjoy” their recess, which he referred to as a “holiday,” raised eyebrows and triggered a flurry of reactions.

    TheNewsGuru.com (TNG) reports that traditionally held between late July and mid-September, the recess for legislators serves as a vital period for lawmakers to engage with constituents and remain visible within their local communities.

    However, Akpabio’s comments painted the recess as a leisure period rather than official engagements, sparking debate about senators’ priorities and obligations.

    “In order to enable all of us to enjoy our holidays, a token has been sent to our various accounts by the Clerk of the National Assembly,” he said before his colleagues promptly reminded him that the session was being live-streamed, leading him to retract his statement.

    In his revised words, however, Akpabio maintained that the recess was a holiday: “I withdraw that statement. In order to allow you to enjoy your holiday, the senate president has sent prayers to your mailboxes to assist you to go on a safe journey and return”.

    About a week earlier, during the resumption of the ministerial screening with the candidate from Edo State Abubakar Momoh, the Senate President had assured that the legislatures meant well for Nigerians.

    “Momoh, you’re the first person that we’re screening today. We want to appeal to you that when you go there, do not be a different person. You’ve been here and you know everything about this place, and you know that we mean well for Nigerians.

    “Don’t go there and close your door and then you don’t relate with the legislature. You only come here when it is time for budgets. I don’t know whether you understand the point. You have to work collaboratively with us,” Akpabio said.

    Many Nigerians have criticised the lawmakers for prioritising personal interests over national welfare, particularly amid economic challenges and rising poverty rates.

    While the amount sent to the senators remains unknown, this newspaper reports that the remuneration package approved by the Revenue Mobilisation, Allocation and Fiscal Commission (RMARC) does not include a designated “holiday” allowance or token provision.

    However, lawmakers receive a recess allowance, equivalent to 10 per cent of their annual basic salary, once a year.

    A former senator from Kaduna state Shehu Sani, who served from 2015 to 2019, confirmed that the crediting of legislators’ accounts has been a longstanding practice, but typically occurs discreetly.

    “Crediting the legislators’ accounts are done under the mute button, the uncommon senate president mistakenly pressed the alarm,” Sani said in a tweet on Wednesday.

    Veteran Nollywood actress Kate Henshaw also noted that the only ‘prayers’ going into the ‘mailboxes’ of poor Nigerians are more taxes and burdens.

    “The only “prayers” going into the “mail” of Nigerians is more taxes, more burdens…Happy holidays to the ones meant to serve & bring succour to their constituents,” she said.

    Meanwhile, the Socio-Economic Rights and Accountability Project (SERAP), has threatened to sue Akpabio, over his alleged payment of holiday allowances.

    “We’re suing the Senate President Godswill Akpabio over the alleged payments of ‘holiday allowances’ by the Clerk of the National Assembly into the ‘various accounts’ of senators while some 137 million poor Nigerians face severe economic hardship,” SERAP disclosed.

    Similarly, a political activist and former Deputy National Publicity Secretary of the All Progressives Congress (APC), Timi Frank, called for Akpabio’s immediate resignation.

    He said: “I’m making it bold and very clear that Senator God’swill Akpabio must immediately resign as the Senate President. He cannot continue to make mockery of our democracy and make mockery of Nigerians.

    “Akpabio has shown that since the inception of the Nigerian Senate, this is the most corrupt Senate President ever Nigerians have witnessed”.

  • FG, Labour Unions resume negotiations today

    FG, Labour Unions resume negotiations today

    The ongoing negotiation between the Nigeria Labour Congress (NLC), the Trade Union Congress of Nigeria (TUC), and the government is set to continue today, as the nation grapples with the aftermath of protests triggered by the fuel subsidy removal.

    The union leaders are scheduled to meet with Representatives of government Tuesday after President Bola Tinubu last week expressed commitment to address crucial issues affecting the workforce and the nation’s economy.

    Speaking during a television programme on Monday, the NLC President Joe Ajaero, said that the decision to suspend the protests came after the intervention of the National Assembly and President Tinubu.

    “The Senate promised to get back to us and resolve the matter within one week. Just this evening we got a notice from them inviting us for a meeting tomorrow (today).

    “We are yet to get the modality on the restructure initiative team, especially the government, and for those that will lead the government team,” Ajaero said.

    Thenewsguru.com (TNG) reports that the National Executive Council (NEC) of the NLC, had taken action against the position of the government to file a contempt charge through the industrial court and Ministry of Justice.

    The NEC of the NLC gave government until 14th of August to withdraw the summon for contempt or face an industrial action.

    In a letter dated 7th August, signed by the Solicitor General of the Federation, Mrs  B.E. Jeddy-Agb and addressed to the lead counsel to the NLC, Falana and Falana’s Chambers, the Federal government has withdrawn the charges.

    The letter reads in part: “kindly recall the exchange of correspondence between the ministry and your office on the need for compliance with the extant court orders, restraining industrial action of any kind on the part of the Nigeria Labour Congress and Trade Union Congress.

    “The position of the ministry was informed by the need to safeguard the integrity of the court and prevent avoidable service disruption or damage to public facilities.

    “Inspite of these exchanges/interventions, the labour unions on Aug. 2, proceeded with the industrial action through public pretests.

    “It is trite that issuance of Form 48 is just the starting point in contempt proceedings which will only crystalize upon the issuance of Form 49 and the consequential committal order.

    “The ministry did not proceed further with the contempt proceedings, which would have required the issuance of Form 49 within two days of thc issuance of Form 48.

    “It is self-evident that the none-issuance of Form 49 as at Aug. 4, renders the contempt proceedings inchoate. You may therefore wish to advise or guide the labour unions on the practice and procedure of contempt proceedings, particularly to the effect that the issues or concerns raised by NLC in its communique on the proceedings, have been overtaken by events.”

    Recall that after meeting with Union leaders last Wednesday 4th August, President Tinubu assured Nigerians that his government would take concrete steps to bring at least one of the moribund refineries in the country back to operation by December.

    Additionally, he pledged to expedite an agreement on the wage award for Nigerian workers and expressed intentions to unveil a comprehensive roadmap for the Compressed Natural Gas (CNG) alternative, which offers a potential solution to the fuel crisis.

    Speaking on the President’s pledge, Ajaero added: “We have decided for a return to a new and reinvigorated dialogue process to allow for full implementation.

    “Once again, we thank Nigerians while we wait for the government to fulfill its own part of the understanding as agreed with His Excellency; the President.”

    As negotiations resume and discussions continue, the hopes of Nigerians are pinned on the outcome of these talks, with expectations of a resolution that addresses the concerns brought about by the recent fuel subsidy removal and it’s attendant effects.

  • Analysis: Tinubu’s poverty plan underestimated, inadequate

    Analysis: Tinubu’s poverty plan underestimated, inadequate

    Recent figures released by the National Social Safety-Net Coordinating Office (NASSCO) further raise doubts about the adequacy of the social welfare plan proposed by the Tinubu-led administration.

    According to NASSCO’s report, there are 15.7 million economically insecure households registered in the National Social Registry, which translates to over 60 million individuals facing economic hardship and deprivation.

    Recall that President Bola Tinubu had unveiled a social welfare plan funded through an $800 million World Bank loan, to mitigate the hardships caused by the removal of fuel subsidies, and had proposed a monthly handout of N8, 000 ($10) to 12 million poor households for six months.

    However, critics argue that the proposed plan inadequately addresses the magnitude of poverty, as it fails to recognize the full scale of poverty in the country and leaves a significant portion of the vulnerable population without any relief.

    As of November 2022, there were approximately 130 million Nigerians representing 63 per cent of the country’s population facing multidimensional poverty, according to the National Bureau of Statistics and this figure is believed to have increased since the removal of fuel subsidies.

    In the face of spiralling inflation and skyrocketing fuel prices which has affected the prices of commodities, the amount proposed for each household is also being widely criticised as grossly insufficient to meet their basic needs, let alone have any meaningful impact on their lives.

    However, President Tinubu expressed optimism about the potential impact of the welfare initiative, stating, “It is expected that the program will stimulate economic activities in the informal sector and improve nutrition, health, education, and human capital development of beneficiaries’ households.”

    But in reality, the escalating prices of goods and dwindling sales have compounded the financial struggles of ordinary citizens, making the proposed N8, 000 monthly stipend appear woefully insufficient to address their pressing needs.

    Some of the major factors identified to be contributing to food insecurity in Nigeria include poverty, climate change, conflict and insecurity, increasing population, poor policy implementation, inefficient agricultural practices, post-harvest losses and low budgetary allocation to agriculture, among others.

    The Chairman, Nigeria Labour Congress, Lagos chapter Funmi Sessi, said: “Looking at the money and the effect of the subsidy removal that has escalated the prices of everything in the market, I wonder what the N8,000 can do for a family in a month.

    “I wonder what it can buy and the services it can render for 30 days; N8,000 cannot take care of a family for a week; it is not possible; it is going to be like a drop of water in the ocean”.

    A viral video on Saturday showed some women in northern Nigeria chanting “Komi Yayi Sadar,” as they protested the high cost of living.

    President Tinubu has declared a state of emergency on food security and directed that all matters pertaining to food and water availability and affordability, as essential livelihood items, be included within the purview of the National Security Council.

    “We shall create and support a National Commodity Board that will review and continuously assess food prices as well as maintain a strategic food reserve that will be used as a price stabilisation mechanism for critical grains and other food items. Through this board, government will moderate spikes and dips in food prices,” the Nigerian government announced.

    The move is seen as part of an aggressive push to boost agricultural productivity and reduce the high prices of major staple foods in Nigeria.

    The development is in line with the government’s short, medium and long-term strategies towards addressing the challenges of food affordability and accessibility in the country.

    President Tinubu has also called for a review of the N8,000 monthly handouts in response to public criticism of the initiative.

  • Subsidy removal: Tinubu approves infrastructure fund to aid states

    Subsidy removal: Tinubu approves infrastructure fund to aid states

    President Bola Tinubu has approved the establishment of an Infrastructure Support Fund (ISF) for all 36 States in Nigeria as a measure to cushion the impact of petrol subsidy removal on citizens.

    This announcement was made during the monthly meeting of the Federation Account Allocation Committee (FAAC) held on Thursday in Abuja.

    President Tinubu’s approval of the Infrastructure Support Fund is aimed at empowering States to intervene and invest in crucial sectors, including Transportation, Agriculture, Health, Education, Power, and Water Resources.

    “The new Infrastructure Fund will enable the States to intervene and invest in the critical areas of Transportation, including farm-to-market road improvements; Agriculture, encompassing livestock and ranching solutions; Health, with a focus on basic healthcare; Education, especially basic education; Power and Water Resources, that will improve economic competitiveness, create jobs and deliver economic prosperity for Nigerians,” a statement signed by the Special Adviser to the President on Special Duties, Communications & Strategy, Dele Alake said.

    The ISF seeks to bolster economic competitiveness, generate job opportunities, and foster overall prosperity for the Nigerian populace.

    The FAAC also took steps to mitigate the impact of increased revenues resulting from the subsidy removal and exchange rate unification by saving a portion of the monthly distributable proceeds to address concerns related to money supply, inflation, and the exchange rate.

    “Out of the distributable revenue for June 2023, totaling 1.9 trillion Naira, N907 billion will be allocated among the three tiers of government, while N790 billion will be saved, and the remainder will be used for statutory deductions,” Alake said.

    These savings will complement the efforts of the ISF and other existing and planned fiscal measures, all aimed at ensuring that the subsidy removal translates into tangible improvements in the lives and living standards of Nigerians.

    Meanwhile, the Presidency has called for patience from Nigerians, urging citizens to exercise understanding as the government implements measures to alleviate the impact of the subsidy removal.

  • Woes, tears as Nigerians put Tinubu’s economic performance on a scale

    Woes, tears as Nigerians put Tinubu’s economic performance on a scale

    Nigeria, Africa’s largest economy, is undergoing significant economic reforms under the leadership of President Bola Tinubu.

    With the aim of revitalizing the nation’s economy and creating a prosperous future, these reforms have brought about both opportunities and challenges for ordinary Nigerians.

    One of the key reforms implemented by the government was the removal of fuel subsidies, aimed at reducing inefficiencies and redirecting funds towards critical sectors, which has led to a surge in the cost of living for many Nigerians.

    The prices of essential commodities, transportation, and utilities have skyrocketed, placing an enormous burden on individuals and households already grappling with economic hardships, particularly low-income workers.

    To worsen the situation, the harmonization of foreign exchange aimed at stabilising the currency and attracting foreign investments, resulted in higher prices of imported commodities.

    About a week ago, President Tinubu signed four Executive Orders that curb arbitrary taxation policies in Nigeria, in a bid to mitigate these economic hardships and create a more business-friendly environment.

    The President is also securing an $800 million credit facility from the World Bank to cushion the effect of the subsidy removal and has rolled out plans to distribute N8, 000 to 12 million households over the next six months, with a projected multiplier effect on about 60 million individuals.

    TheNewsGuru.com (TNG) recalls that the President’s campaign manifesto, dubbed “Renewed Hope,” outlined ambitious goals for industrial activity, youth empowerment, and overall economic development.

    With a focus on industrial activity, job creation, fiscal responsibility, and infrastructure development, the Tinubu’s vision seeks to drive sustainable economic growth and improve the standard of living for all Nigerians.

    Tinubu pointed out the correlation between infrastructure capacity and economic growth, promising that his administration would bring the National Infrastructure Policy to life, aligning it with the National Industrial Policy to maximize sector development and accelerate GDP growth.

    He outlined a prudent approach to foreign currency debt, stressing that his administration would prioritize naira-denominated expenditures and debt obligations, limiting foreign currency debts to essential expenditures that cannot be adequately addressed otherwise.

    “Under our government, our cities and towns will witness a level of industrial activity unprecedented in our nation’s history. In this, our youth shall become a leading catalyst driving the economic resurgence.

    “We will improve existing industries and sectors. We will be brave and innovative enough to see how new economic vistas powered by today’s technology can create jobs and provide goods and services that will propel us toward greater prosperity and development.

    “We will build an economy that produces more of the everyday items, both agricultural and manufactured goods, that define an individual’s and a nation’s standard of living.

    “Our economic policies shall be guided by our desire for a stronger, more stable Naira founded upon a vibrant and productive real economy. Our administration will engage in extraordinary prudence in contracting debt in foreign currency. Our policy will be such that new foreign currency debt obligations will be linked to projects that generate cash flows from which the debt can be repaid.

    “Where possible, we shall limit such foreign currency-denominated debts to essential expenditures that cannot be adequately addressed by either naira-denominated expenditures or debt obligations,” President Tinubu’s manifesto stated.

    However, despite promises of youth empowerment and support for new businesses, access to credit and finance remains a significant hurdle for aspiring entrepreneurs and small business owners.

    Limited access to capital, stringent loan requirements, and high interest rates make it difficult for individuals to start or expand their ventures, hindering economic progress and stifling job creation.

    Nigeria’s infrastructure deficit also continues to pose challenges to its citizens. Poor road conditions, inadequate electricity supply, and insufficient healthcare facilities adversely affect the quality of life for many Nigerians.

    Notwithstanding, Nigerians retain hope for a brighter future and anticipate improved access to basic services and enhanced living standards.