President Bola Tinubu yesterday, unveiled measures to cushion the effects of the economic downturn, caused by fuel subsidy removal, in the country, telling Nigerians he understood the hardship and came to help, not to hurt them.

He, however, approved N100 billion for the procurement of 3000 20-seater buses fueled by Compressed Natural Gas, CNG, to ease the high cost of transportation caused by fuel subsidy removal.

The President also said his administration would energize micro, small, and medium-sized enterprises and the informal sector as drivers of growth with N125 billion.

He said of the sum, N50 billion would be spent on conditional grants to one million nano businesses between now and March 2024, explaining that the government’s target was to give N50,000 each to 1,300 nano business owners in each of the 774 local governments across the country

As he was being sworn in on May 29, President Tinubu implemented the full removal of fuel subsidies, leading to a hike in fuel prices from N200 to between N567 and N617 per liter across the country.

He also abolished multiple exchange rates, forcing the dollar to exchange for over N850 at the black market. It was less than N461 to a Dollar in May 2023.

The developments took inflation from 22.41 percent in May to 22.79 percent in June, with attendant gnashing of teeth among most Nigerians, especially the poor.

In a 41-point, 1794-word national broadcast on the current economic challenges, yesterday, Tinubu assured Nigerians that things would get better soon. Titled: “After Darkness Comes the Glorious Dawn,” Tinubu in the broadcast said to reform the economy for the long-term good, fuel subsidies, and multiple exchange rates had to go.

The National Security Adviser to President Bola Tinubu, Nuhu Ribadu, met with Governors from the five South-East states in Abuja behind closed doors on Monday. Although the agenda of the closed-door session was not made known, there are speculations that it might not be unconnected to the worsening security challenges in Anambra, Enugu, Abia, Imo, and Ebonyi States.

Last Wednesday, the Senate condemned the Monday sit-at-home in the South East geopolitical zone and asked the Federal Government to collaborate with the Finnish Government and extradite a pro-Biafran agitator, Simon Ekpa, for prosecution.

The upper chamber resolved to invite the Minister of Foreign Affairs (when appointed) and relevant stakeholders to conduct a thorough investigation and bring other sponsors of the act to book. The Senate also rejected a recommendation for IPOB leader Nnamdi Kanu’s release, saying it would amount to sub judice as his release was still in court.

The illegal sit-at-home order is said to be enforced by a faction of the proscribed Indigenous People of Biafra (IPOB) in five South-East states. The unconstitutional order was declared in 2021 to press home demands for the release of IPOB leader Nnamdi Kanu, who was detained by the Department of State Services (DSS) and prosecuted for terrorism-related charges.

Governor Bababjide Sanwo-Olu of Lagos State, yesterday, announced a reduction in transport fares on all Bus Rapid Transit, BRT, routes by 50 percent, beginning tomorrow. The governor also said commercial yellow buses, known as ‘Danfo’, will follow suit with a reduction of 25 percent in fare on all routes.

Sanwo-Olu said this while addressing journalists at the State House, Ikeja, at the end of a security meeting with security agencies such as the army, police, and the navy. He also said the number of Lagos State staff buses will be increased, adding that new buses have been purchased for distribution soon.

The governor also said the state will commence the distribution of food packs such as rice, beans and cassava flour, known as garri to the vulnerable people in the state. According to him, the distribution will be done through Community Development Associations, CDAs, churches, mosques, and local government.

These measures, Sanwo-Olu said, are to cushion the effects of the removal of fuel subsidies by the Federal Government as well as the harsh economic situation in the country. The 50 percent reduction will be reflected on the transportation fare charged by buses operated by BRT, under the supervision of the Lagos Metropolitan Area Transport Authority, LAMATA, and a 25 percent reduction by yellow buses.

He noted that the decision had since been communicated to LAMATA, adding that the authorities of Lagos Park and Garage were already deliberating on the modality to carry their members along on the way to ensure seamless implementation concerning yellow buses.

Sanwo-Olu further disclosed that food packs would be made available to the vulnerable people in the state daily, adding that the food packs would be available through various channels.

The organized labor on Monday insisted on going ahead with its planned protest over the removal of petroleum subsidy. Rising from another round of meetings of the Steering Committee on palliatives at the presidential villa, Abuja, they also expressed doubts about President Bola Tinubu’s ability to control inflation and gasoline prices due to the unification of the exchange rate.

Speaking to correspondents, the President of the Nigeria Labour Congress (NLC), Joe Ajaero, said the plan for workers to proceed on a peaceful protest from Wednesday has not changed. He dismissed fears that the peaceful protest could be hijacked by hoodlums, saying that such had never happened in the history of workers’ protest.

However, he said it is the responsibility of security agencies to provide security for the protest to protect the workers. He said the meeting of the Steering Committee adjourned till 12 noon on Tuesday to enable the labor leaders to listen to the president’s national broadcast on Monday.

However, reacting to Tinubu’s plan to intervene on the exchange rate of inflation and high cost of gasoline prices, Ajaero said: “By the time you have a single market and you are not having anything that has a comparative advantage, your energy is import driven, then how are you going to control it? How are you going to control somebody that exchanged dollars at about 900 (naira)? Are you going to tell him to sell below the price?

“How are you going to tell even NEPA today, with the cost of production not to increase tariff? Even corn in the villages that was sold at N18,000 by February, now it’s about 56,000. How are you going to control it?”

On his side, the Chief of Staff to the President said that issues were trashed at the closed-door meeting and that they adjourned to listen to the President’s broadcast. He also said that the government is dealing with the oil cabals that have brought the economy to its knees.

My fellow citizens,
I want to talk to you about our economy. It is important that you understand the reasons for the policy measures I have taken to combat the serious economic challenges this nation has long faced.

I am not going to talk in difficult terms by dwelling on economic jargon and concepts. I will speak in plain, clear language so that you know where I stand. More importantly, so that you see and hopefully will share my vision regarding the journey to a better, more productive economy for our beloved country.

For several years, I have consistently maintained the position that the fuel subsidy had to go. This once beneficial measure had outlived its usefulness. The subsidy cost us trillions of Naira yearly. Such a vast sum of money would have been better spent on public transportation, healthcare, schools, housing and even national security. Instead, it was being funnelled into the deep pockets and lavish bank accounts of a select group of individuals.

This group had amassed so much wealth and power that they became a serious threat to the fairness of our economy and the integrity of our democratic governance. To be blunt, Nigeria could never become the society it was intended to be as long as such small, powerful yet unelected groups hold enormous influence over our political economy and the institutions that govern it.

The whims of the few should never hold dominant sway over the hopes and aspirations of the many. If we are to be a democracy, the people and not the power of money must be sovereign.

The preceding administration saw this looming danger as well. Indeed, it made no provision in the 2023 Appropriations for subsidy after June this year. Removal of this once helpful device that had transformed into a millstone around the country’s neck had become inevitable.

It also compounded the threat that the illicit and mass accumulation of money posed to the future of our democratic system and its economy.

• I had promised to reform the economy for the long-term good by fighting the major imbalances that had plagued our economy. Ending the subsidy and the preferential exchange rate system were key to this fight. This fight is to define the fate and future of our nation. Much is in the balance.
• Thus, the defects in our economy immensely profited a tiny elite, the elite of the elite you might call them. As we moved to fight the flaws in the economy, the people who grow rich from them, predictably, will fight back through every means necessary.
• 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.
• What I can offer in the immediate is to reduce the burden our current economic situation has imposed on all of us, most especially on businesses, the working class and the most vulnerable among us.
• Already, the Federal Government is working closely with states and local governments to implement interventions that will cushion the pains of our people across socio-economic brackets.
• Earlier this month, I signed four (4) Executive Orders in keeping with my electoral promise to address unfriendly fiscal policies and multiple taxes that are stifling the business environment. These Executive Orders on suspension and deferred commencement of some taxes will provide the necessary buffers and headroom to businesses in manufacturing sector to continue to thrive and expand.
• To strengthen the manufacturing sector, increase its capacity to expand and create good paying jobs, we are going to spend N75 billion between July 2023 and March 2024. Our objective is to fund 75 enterprises with great potential to kick-start a sustainable economic growth, accelerate structural transformation and improve productivity. Each of the 75 manufacturing enterprises will be able to access N1billion credit at 9% per annum with maximum of 60 months repayment for long term loans and 12 months for working capital.
• Our administration recognises the importance of micro, small and medium-sized enterprises and the informal sector as drivers of growth. We are going to energise this very important sector with N125 billion.
• Out of the sum, we will spend N50 billion on Conditional Grant 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.
• Ultimately, this programme will further drive financial inclusion by onboarding beneficiaries into the formal banking system. In like manner, we 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 N1million at 9% interest per annum and a repayment period of 36 months.
• To further ensure that prices of food items remain affordable, we have had a multi-stakeholder engagement with various farmers’ associations and operators within the agricultural value chain.
• In the short and immediate terms, we will ensure staple foods are available and affordable. To this end, I have ordered release of 200,000 Metric Tonnes of grains from strategic reserves to households across the 36 states and FCT to moderate prices. We are also providing 225,000 metric tonnes of fertilizer, seedlings and other inputs to farmers who are committed to our food security agenda.
• Our plan to support cultivation of 500,000 hectares of farmland and all-year-round farming practice remains on course. To be specific, N200 billion out of the N500 billion approved by the National Assembly will be disbursed as follows:

-Our administration will invest N50 billion each to cultivate 150,000 hectares of rice and maize.
-N50 billion each will also be earmarked to cultivate 100,000 hectares of wheat and cassava.

22. This expansive agricultural programme will be implemented targeting small-holder farmers and leveraging large-scale private sector players in the agric business with strong performance record.
23. In this regard, the expertise of Development Finance Institutions, commercial banks and microfinance banks will be tapped into to develop a viable and an appropriate transaction structure for all stakeholders.
24. Fellow Nigerians, I made a solemn pledge to work for you. How to improve your welfare and living condition is of paramount importance to me and it’s the only thing that keeps me up day and night.
25. It is in the light of this that I approved Infrastructure Support Fund for the States. This new Infrastructure Fund will enable States to intervene and invest in critical areas and bring relief to many of the pain points as well as revamp our decaying healthcare and educational Infrastructure.
26. The fund will also bring improvements to rural access roads to ease evacuation of farm produce to markets. With the fund, our states will become more competitive and on a stronger financial footing to deliver economic prosperity to Nigerians.
27. Part of our programme is to roll out buses across the states and local governments for mass transit at a much more affordable rate. We have made provision to invest N100 billion between now and March 2024 to acquire 3000 units of 20-seater CNG-fuelled buses.
28. These buses will be shared to major transportation companies in the states, using the intensity of travel per capital. Participating transport companies will be able to access credit under this facility at 9% per annum with 60 months repayment period.
29. In the same vein, we are also working in collaboration with the Labour unions to introduce a new national minimum wage for workers. I want to tell our workers this: your salary review is coming.
30. Once we agree on the new minimum wage and general upward review, we will make budget provision for it for immediate implementation.
31. I want to use this opportunity to salute many private employers in the Organised Private Sector who have already implemented general salary review for employees.
32. Fellow Nigerians, this period may be hard on us and there is no doubt about it that it is tough on us. But I urge you all to look beyond the present temporary pains and aim at the larger picture. All of our good and helpful plans are in the works. More importantly, I know that they will work.
33. Sadly, there was an unavoidable lag between subsidy removal and these plans coming fully on line. However, we are swiftly closing the time gap. I plead with you to please have faith in our ability to deliver and in our concern for your well-being.
34. We will get out of this turbulence. And, due to the measures we have taken, Nigeria will be better equipped and able to take advantage of the future that awaits her.
35. In a little over two months, we have saved over a trillion Naira that would have been squandered on the unproductive fuel subsidy which only benefitted smugglers and fraudsters. That money will now be used more directly and more beneficially for you and your families.
36. For example, we shall fulfill our promise to make education more affordable to all and provide loans to higher education students who may need them. No Nigerian student will have to abandon his or her education because of lack of money.
37. Our commitment is to promote the greatest good for the greatest number of our people. On this principle, we shall never falter.
38. We are also monitoring the effects of the exchange rate and inflation on gasoline prices. If and when necessary, we will intervene.
39. I assure you my fellow country men and women that we are exiting the darkness to enter a new and glorious dawn.
40. Now, I must get back to work in order to make this vision come true.
41. Thank you all for listening and may God bless Federal Republic of Nigeria.