President Bola Ahmed Tinubu has announced plans by the Federal Government of Nigeria to allocate N50 billion conditional grant to one million businesses, N50,000 each to 1300 nano-businesses across 774 local governments between now and March, 2024,
Bola Tinubu revealed this economic intervention among other plans, during a live national broadcast, Monday, 31st July, 2023.
Tinubu stated that his administration is rolling out these economic interventions to reduce the burden the current economic situation has imposed on all Nigerians, especially businesses, the working class and the most vulnerable persons.
“What I can offer in the immediate future 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,” he stated.
The President that the economic difficulty results from the wasteful fuel subsidy and multiple exchange rate systems, which puts the national wealth in the hands of a few persons.
Tinubu maintained that removing the fuel subsidy, despite the hardship it brings to the nation’s people, is an action in the right direction, beneficial to Nigeria’s future and economic growth.
“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.”
“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 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,” Tinubu revealed.
Tinubu restated his commitment to revitalising the nation’s economy by working with state governments to offer interventions for businesses, workers and vulnerable persons to prosper amidst the hardship.
“ 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.”
“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.”
“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 for 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 will spend N75 billion between July 2023 and March 2024.
“Our objective is to fund 75 enterprises with great potential to kick-start sustainable economic growth, accelerate structural transformation and improve productivity.
“Each of the 75 manufacturing enterprises will be able to access N1 billion credit at 9% per annum with a maximum of 60 months repayment for long-term loans and 12 months for working capital,” he disclosed.
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