President Bola Tinubu has pleaded with Nigerians to exercise patience with the economic challenges the country is facing, even as he unveiled policy measures to tackle them.
President Tinubu's appeal comes a day ahead of the rally and strike called by the organised labour following a seven-day ultimatum to the Tinubu administration to reverse the economic policies that have led to hardship among the masses.
But in a nationwide broadcast to Nigerians last night, he emphasised the need to eliminate the fuel subsidy, stating that it had become a burden on the nation's finances.
He explained that the funds saved from the subsidy removal would be redirected to essential sectors like public transportation, healthcare, education, housing, and national security.
The president expressed concern at the concentration of wealth and power in the hands of few individuals which, he said, posed a significant threat to the nation's democratic governance and economic fairness.
To combat this, he urged for greater sovereignty of the people against the influence of money.
Tinubu highlighted his commitment to long-term economic reform, which includes ending the multiple exchange rate system that had facilitated currency speculation.
He underlined the importance of addressing major imbalances in the economy to secure the future of Nigeria.
He said, "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."
The president said he had held the position for several years that the fuel subsidy must go as it 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...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.
According to him, the whims of the few should not 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," he said.
"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.
"Also, the multiple exchange rate system that had been established became nothing but a highway of currency speculation. It diverted money that should have been used to create jobs, build factories and businesses for millions of people.
"Our national wealth was doled out on favourable terms to a handful of people who have been made filthy rich simply by moving money from one hand to another. This too was extremely unfair."
In response to the current economic hardships faced by citizens, the president outlined various interventions.
He said, "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 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 the 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 N1 billion credit at nine percent per annum with a 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 N1 million at nine percent interest per annum and a repayment period of 36 months.
He said that to further ensure that prices of food items remain affordable, his government has had a multi-stakeholder engagement with various farmers' associations and operators within the agricultural value chain.
In a bid to maintain food affordability, President Tinubu revealed plans to release grains from strategic reserves and distribute them across the country.
Additionally, he s aid investments in agriculture, including the cultivation of rice, maize, wheat, and cassava, will further bolster food security.
The president also announced an Infrastructure Support Fund for states to invest in critical areas such as healthcare and education.
Furthermore, he pledged to provide affordable mass transit solutions through the acquisition of CNG-fuelled buses.
"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.
"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.
For workers, President Tinubu promised a new national minimum wage, even as he showed appreciation for private employers who have already implemented salary reviews.
Tinubu urged Nigerians to have faith in the government's ability to deliver positive outcomes and assured them that Nigeria would emerge from the current economic turbulence stronger and better equipped for the future.
He acknowledged the challenging period the country is facing and urged citizens to look beyond the temporary pains and focus on the larger picture.
The president pledged to continue working tirelessly to realize the vision of a new and glorious dawn for Nigeria.
He said the commitment remains unwavering, with a focus on promoting the greatest good for the greatest number of the Nigerian people.
Senate Appeals To Labour
The Senate has called on the Nigeria Labour Congress (NLC) to suspend its planned strike and give the government time to assuage the sufferings of the people.
According to the Senate, if NLC goes on strike, it will affect the economy of the country.
This call came when Sen Suleiman Kawu (NNPP, Kano South) sponsored a motion on the need to halt the strike.
The Senate resolved that the leadership of the Senate should interface with the Labour union leaders and President Bola Ahmed Tinubu on the need to stop the strike.
LEADERSHIP reports that the seven-day ultimatum given by the NLC for the government to reverse what it described as anti-people policies expires today.
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He argued that the strike threat by the NLC, if not averted, could plunge Nigeria into deeper economic woes, dislocate businesses, increase hunger, frustration and more hardship that would lead to unquantified financial losses and reduce Nigeria's Gross Domestic Product (GDP).
Senate, accordingly, resolved that its leadership should immediately interface with the Nigeria Labour Congress and President Bola Ahmed Tinubu in order to avert the impending strike of the NLC.
Speaking, Sen Aminu Abbas (Adamawa Central) said they are all aware of what happened in Adamawa State over the weekend where youths looted the state's warehouse.
"We want the NLC to stop the strike and discuss with the government," he said.
On his part, Henry Siriake Dickson (Bayelsa West) commended the president for removing subsidy, but noted that Nigerians were going through a very harrowing moment.
"The Senate appreciates what they are going through, but we must work with the executive to address the economic situation. The Senate leadership should interface with the president urgently," he said.
Labour Adamant On Planned Strike Despite Tinubu's Address
Meanwhile, despite the nationwide broadcast by President Bola Ahmed Tinubu, organised labour yesterday remained adamant on going ahead with its August 2, 2023 planned strike.
NLC assistant general secretary, Comrade Chris Onyeka, told LEADERSHIP on phone that the president's nationwide broadcast was immaterial, adding that organised labour will go ahead with its planned protest and strike.
When our correspondent asked if the planned protest will still go ahead despite the nationwide broadcast by President Tinubu, Onyeka said, "Definitely yes!"
The director-general, Nigeria Employers Consultative Association (NECA), Adewale- Smart Oyerinde, while reacting to President Bola Tinubu's nationwide broadcast, demanded immediate solution to the current problem by prompt appointment of capable ministers that will help to actualise the promises made by the president.
