During the recent nationally televised broadcast, the President of Nigeria, Bola Tinubu, has highlighted several initiatives that have been implemented to cushion the effects of several implemented reforms, while he urged protesters to hold off on their action as the administration continues working. President Tinubu clarified that the Economy of the nation was impacted by short term resolutions, adding that in order to restore the economy’s trajectory, the foreign exchange market needed to be unified and Fuel Subsidies had to be eliminated. He said the 36 states of the federation have received over ₦570 billion in funding to support more vulnerable individuals.
Currently, 600,000 nano enterprises have profited from the federal government’s nano grant; the President estimates that another 400,000 will benefit more. He also listed other initiatives carried out by his administration, such as the creation of 10 MSME hubs, which in the past year have generated 240,000 jobs, ₦1 million single-digit loans to micro and small enterprises, and ₦1 billion single-digit loans to manufacturers to increase Manufacturing output. In addition, he encouraged the younger generation to seize the chances that were presented.
Savings from subsidy removal directed to vital areas.
In an effort to improve lives for millions of Nigerians, he said, the government formed the Consumer Credit Corporation with over ₦200 billion to aid citizens in purchasing necessities without having to pay cash up front. Additionally, he revealed that he had directed the EFCC to transfer an additional ₦50 billion Naira to both the Credit Corporation and the Nigerian Education Loan Fund (NELFUND). In addition, the administration has obtained $620 million for the Digital and Creative Enterprises program, which aims to empower youth by generating millions of IT and technical employment and enhancing their competitiveness in the global market.
He mentioned that the 3 Million Technical Talents program was one of these initiatives. He also confirmed the launch of the National Youth Talent Export Program (NATEP), the Nigerian Youth Academy (NIYA), and the Skill-Up Artisans Programme (SUPA). Since entering office in 2023, President Bola Tinubu has carried out a number of noteworthy alleviation initiatives. The administration reportedly redirects savings from the removal of fuel subsidies, a policy that previously cost more than ₦1 trillion yearly, to vital areas including healthcare, infrastructure, education and social Welfare initiatives.
Funding allotted to state governments grew by 53.8%.
To provide guidance on economic reforms and strategies, Tinubu established a new economic council. State governors, the governor of Central Bank of Nigeria (CBN), and other officials form the council in order to encourage cooperation amongst the various governmental tiers. Last year, the Nigerian government gave green light to the distribution of ₦5 billion to all the federation states including the Federal Capital Territory (FCT). 52% of the ₦5 billion is given out as grants, while the remaining 48% must be paid back over the course of 20 months to the CBN.
Substantial improvements have been observed in the allocation to Nigerian states under the administration of President Bola Tinubu. The whole statutory allotment from the federation account, distributed to the federal government, 36 states, and 774 local governments, was ₦10.13 trillion in the first five months of 2024. Funding allotted to state governments grew by 53.8% when compared to the same period last year under the Buhari administration. Increases in allocation were quite significant in several states; Lagos, for instance, witnessed a 59.6% increase, Osun saw rises of 75.59%, while Ogun saw a rise of 70.15%.
Related Article: NELFund pays ₦1bn tuition for 20,000 students
However, all the increase in states’ allocation, grants and other relief efforts provided by the federal government seems to have little to no effect as the people of the country continue to groan about the intensifying hardship. Reacting to this, Reno Omokri, a former aide to ex-president Goodluck Jonathan, has been repeatedly questioned (on his X account) why certain state governments have not yet demonstrated a discernible improvement even after receiving such huge support from the federal government, when some are showing progress. He used Lagos as an example, where since the increments, various projects have been done and civil servant pay has risen by 20%.