Subsidy removal: We have saved over N1trn – Tinubu

President Bola Ahmed Tinubu has appealed to the conscience of Nigerians, urging their support for the subsidy removal policy and other intervention programs initiated by his government.

Highlighting the rationale behind the policy, Tinubu revealed that within a little over two months since his administration took office, they have saved over a trillion Naira that would have otherwise been wasted on unproductive fuel subsidies. He strongly asserted that the dubious subsidy system only benefitted smugglers and fraudsters, vowing that the saved funds would now be used more directly and beneficially for the citizens and their families.

Addressing the ongoing forex crisis affecting the country, President Tinubu assured the nation that the government was closely monitoring the impact of the exchange rate and inflation on gasoline prices. He stated that if necessary, appropriate interventions would be implemented.

Acknowledging the tough economic situation and its repercussions on citizens, Tinubu empathized with the hardship faced by households and businesses, with the cost of fuel hikes leading to a rise in food and other prices.

He emphasized that he wished there were alternative solutions, but the current course was inevitable as he came into power to help, not harm the people and the nation.

To alleviate the burden of the economic situation, President Tinubu unveiled a series of interventions that could be considered as palliatives. He disclosed that the Federal Government was working closely with states and local governments to implement measures aimed at cushioning the impact on people across different socio-economic brackets.

The President recently signed four Executive Orders to address unfriendly fiscal policies and multiple taxes hindering the business environment. These orders aim to provide necessary buffers and headroom for the manufacturing sector to thrive and expand.

To strengthen the manufacturing sector and create job opportunities, the government will allocate N75 billion between July 2023 and March 2024 to fund 75 enterprises with significant potential. Each enterprise will be eligible to access N1 billion credit at 9% per annum, with varying repayment terms.

Recognizing the importance of micro, small, and medium-sized enterprises (MSMEs) and the informal sector in driving growth, President Tinubu announced that N125 billion would be allocated to energize this sector. Part of this fund, N50 billion, will be disbursed as a conditional grant to 1 million nano businesses, with each business owner in all 774 local governments receiving N50,000 by March 2024.

Moreover, the government will allocate N75 billion to support 100,000 MSMEs and start-ups. Each enterprise promoter will be able to obtain between N500,000 to N1 million at 9% interest per annum, with a repayment period of 36 months.

President Tinubu expressed optimism that these interventions would drive financial inclusion and foster economic growth, supporting businesses and individuals through these challenging times. He urged Nigerians to rally behind the government’s efforts to achieve economic stability and prosperity for all.