• Says economy not distressed •Acceptance of grains from Ukraine does not sign of failure –Minister
President Bola Tinubu has confessed that Nigeria is facing challenging times but rebuffed the notion that the economy is in distress, emphasizing that current circumstances were not beyond repairs.
Speaking at the 16th edition of the Leadership 2023 Conference and Awards held at the Transcorp Hotel, Abuja with the theme “An Economy in Distress: Which Way Forward? the president premised his optimism in the ongoing efforts aimed at steering the country out of its current challenges.
The president was awarded Person of the Year 2023 in recognition of his “undisputable can-do spirit” that marked him out as a quintessential politician who defied monumental odds to emerge as the candidate of the All Progressives Congress (APC), after which he went on to win the 2023 presidential election.
The award, the Leadership Newspaper also said is to acknowledge the president’s courage in taking a number of difficult but necessary decisions in order to reposition the country towards economic prosperity.
Tinubu who was represented by the Minister of Information and National Orientation, Mohammed Idris accepted the fact that the country is facing some challenges, but it is not helpless.
“Interestingly, that last line offers itself as a perfect answer to the question that is the theme of today’s event, which is “An Economy in Distress: Which Way Forward?”
“I should start by respectfully challenging the notion that the Nigerian economy is in distress. Distress suggests helplessness, being at the mercy of something we have no control over. But that is not the case here.
“We are in challenging times, no doubt, but these times have also been marked by unprecedented opportunities to reset course and to build a new and sustainable economy, away from the rent-seeking and the waste that was once the order of the day.
“The Leadership Group has itself alluded to the “difficult but necessary” decisions that we have taken. Since the removal of petrol subsidies, our imports of petrol have dropped by about 50 percent, which translates to roughly one billion liters of petrol every month, according to the Nigerian Bureau of Statistics.
“In addition, the revenues accruing to the three tiers of government: federal, state, and local have grown by between 50 percent and 100 percent since the removal of the petrol subsidy. This means more funds are available to directly impact the lives of Nigerians through investments in critical infrastructure, social security, and other areas.
“For example, the additional funding we are receiving is going into a new minimum wage for which negotiations have started, between the federal and state governments and organized labour.
“The Leadership Group has itself alluded to the ‘difficult but necessary’ decisions that we have taken. Since the removal of petrol subsidies, our imports of petrol have dropped by about 50 percent, which translates to roughly one billion liters of petrol every month, according to the Nigerian Bureau of Statistics.
“In addition, the revenues accruing to the three tiers of governments – federal, state, and local – have grown by between 50 percent and 100 percent since the removal of the petrol subsidy. This means more funds are available to directly impact the lives of Nigerians through investments in critical infrastructure, social security, and other areas.
“For example, the additional funding we are receiving is going into a new minimum wage for which negotiations have started, between the federal and state governments and organized labour.
“The first is a N50 billion Presidential Conditional Grant Scheme (PCGS) that will provide business grants and loans to traders, food vendors, transport workers, ICT businesses, creatives, and artisans. Verification of all submitted applications is ongoing, and disbursements will commence through the Bank of Industry (BOI) as soon as this verification is completed.
“The second is a N75 billion FGN MSME Intervention Fund that will provide single-digit-interest loans to our MSMEs.
“The third is a N75 billion FGN Manufacturing Sector Fund targeting manufacturing businesses, with selected beneficiaries eligible to access up to 1 billion Naira each.
“In addition, our new Federal Student Loan program will take off within the next few weeks, providing interest-free financing not just for students in our tertiary institutions but also covering those in vocational and skill acquisition programs as well.
“For the poorest and most vulnerable among us, the Social Investment Programme, currently under review to reposition it for maximum impact, will support millions of households with direct cash transfers that will enable them to meet their basic needs.
“I have approved N100 billion for a Presidential Initiative on CNG, which will deliver CNG-powered buses and engine conversion kits. Let me ask Nigerians for a little more patience as we await the imminent rollout of these CNG-powered buses which will bring down the cost of transportation by as much as 50 percent.
“In the area of food security, I am pleased to say that our dry season farming program which kicked off with wheat in November 2023 is well on course, and we are already set for the first round of harvest. We have received tremendous support from partners like the African Development Bank (AfDB) in this regard. As part of our own commitments as a Government, I have approved 100 billion Naira for the National Agricultural Development Fund for the year 2024, while we have commenced the repositioning of the Bank of Agriculture to better deliver on its mandate.”
The president further shared some numbers to buttress that the reforms and other steps taken by the administration were on the right track. According to him, “Since we assumed office in May 2023, we have attracted $30 billion in Foreign Direct Investment (FDI) commitments into the real sectors of the economy, including Manufacturing, Telecoms, Healthcare, Oil & Gas, and others. Those investments have already started coming into the country.
“The fact that we are having challenges at the moment does not make Nigeria a failed state. Therefore, accepting grains from Ukraine does not make Nigeria or Egypt failed countries.
“It is a normal thing, because countries exist to depend on one another.’’
According to the minister, it is true that Nigeria is facing some challenges, but President Tinubu is aware of this, and he does not shy away from it.
“Nigerians voted for Tinubu with the deeper understanding and conviction that he has the capacity to turn things around for the better; and that is what he is doing.
“Some of the decisions he has taken were to ensure that Nigeria finds its place in the comity of nations.
“The decisions include removal of fuel subsidies and addressing the issue of foreign exchange and many others. In spite of the current challenges, the economic growth of Nigeria is on track and has continued to improve.’’
Idris explained that fuel subsidy removal was a bold step in the right direction, and urged Nigerians to support the president as the country would soon begin to reap the benefits.