Tinubu Announces Interventions To Cushion Policy Impact On Nigerians
In what could be considered a big bail-out, President Bola Tinubu, on Monday said that his administration will spend over N200 billion as credit to strengthen the manufacturing sector, increase its capacity to expand and create good paying jobs.
In a nationwide broadcast on Monday titled “After Darkness Comes The Glorious Dawn”, the president said that between July 2023 and March 2024, his government will fund 75 enterprises with great potential to kick-start sustainable economic growth, accelerate structural transformation and improve productivity.
The president said that “Each of the 75 manufacturing enterprises will be able to access N1 Billion credit at 9 per cent per annum with a maximum of 60 months repayment for long-term loans and 12 months for working capital.”
On the micro, small and medium enterprise (MSMEs) sector, President Tinubu said that his government is going to energise the sector with N125 billion.
“Out of the sum, we will spend N50 billion on Conditional Grants 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,” the president promised.
According to him, the government 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 N1 million at 9 per cent interest per annum and a repayment period of 36 months,” said the President.
He expressed hope that the programme would further drive financial inclusion by onboarding beneficiaries into the formal banking system.
President Tinubu’s package did not leave the other sectors behind as he also highlighted the government’s move to release food grains to cushion the high cost of food and living conditions of the masses.
“Our economy is going through a tough patch and you are being hurt by it. The cost of fuel has gone up. Food and other prices have followed it. Households and businesses struggle. Things seem anxious and uncertain. I understand the hardship you face. I wish there were other ways. But there is not. If there were, I would have taken that route as I came here to help not hurt the people and nation that I love,” said President Tinubu in a very soulful voice.
To this end, he said he had ordered the release of 200,000 Metric Tonnes of grains from strategic reserves to households across the 36 states and FCT to moderate prices.
In addition, he said that the government is also providing 225,000 metric tonnes of fertilizer, seedlings and other inputs to farmers who are committed to the food security agenda, stressing that in the short and immediate terms, the government would ensure staple foods are available and affordable.
The president pronounced other interventions like the deployment of 3000 commuter busses across the states of the federation to ameliorate the high cost of transportation which rose sharply in the wake of petrol subsidy removal.
President Tinubu’s economic policies, particularly the removal of the petrol subsidy and devaluation of the local currency, have further eroded the living condition of the average Nigerian in the two-month-old administration as food and energy prices hit unprecedented levels and triggered a spillover.
In revolt against the perceived harsh impact of the government’s policies, the leadership of the Nigerian Labour Congress (NLC) has scheduled a mass protest on August 2 to press a reversal of the policies.
Reacting to the government’s planned interventions, observers said that the president’s address failed to address the key issues of local refining of petroleum as a vital solution to moderate fuel costs, and sustainably cheaper supply of the product.
“The president’s address was far short of reasonable expectation. The key issues are energy costs and naira devaluation. His address offered no solution to these vexed issues. Throwing credit at manufacturing and agriculture may achieve nothing if the critical issues are not addressed,” said Raphael Udoh, a political economy analyst.
He urged the government to go back to the drawing board for a rethink over the sorry past in which the country has found itself, insisting that if nothing is done to address the situation the masses might sink into severe agony of penury, hunger, lack and want.
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