In a significant move to alleviate economic hardship, the Federal Government of Nigeria has released N570bn to the 36 states to expand livelihood support for their citizens. President Bola Tinubu announced this measure during his nationwide broadcast, highlighting the administration’s commitment to addressing the pressing needs of the populace.
President Tinubu also revealed that Nigeria spends approximately N2tn monthly on importing Premium Motor Spirit (PMS), commonly known as petrol, and Automotive Gas Oil (AGO), also known as diesel. This staggering expenditure has underscored the urgency of diversifying the country’s energy sources and reducing dependency on oil imports.
During the first half of 2024, Nigeria accumulated a total fiscal revenue of N9.1tn, marking a significant increase from the previous administration. The President attributed this revenue surge to efforts in blocking leakages, implementing automation, and mobilizing funding creatively, all while avoiding additional burdens on the citizens.
The President also announced that more than N570bn had been disbursed to the states to support their citizens’ livelihoods. He highlighted that 600,000 nano-businesses have already benefitted from the government’s nano-grants, with an additional 400,000 nano-businesses expected to benefit soon. This initiative aims to provide crucial support to small-scale enterprises, which are vital for economic growth and job creation.
Despite Nigeria’s abundant oil and gas resources, President Tinubu noted that the country has historically relied solely on oil-based petrol, neglecting its gas resources. This reliance has led to significant foreign exchange expenditures on fuel subsidies. To address this issue, the administration launched the Compressed Natural Gas (CNG) Initiative to power the transportation sector and reduce costs. This initiative is expected to save over N2tn monthly, currently spent on importing PMS and AGO, and reallocate resources towards healthcare and education.
As part of the CNG Initiative, the government plans to distribute one million low-cost or no-cost conversion kits to commercial vehicles, which consume a significant portion of imported fuel. This effort aims to reduce transportation costs by approximately 60% and help curb inflation. The initiative is being rolled out in collaboration with the private sector, with conversion centers being set up across the country.
President Tinubu also addressed the ongoing nationwide protests that began on August 1, 2024, stating that his administration is open to listening to and addressing the concerns of the protesters. He emphasized the government’s focus on economic reforms and the reduction of Nigeria’s debt burden. The revenue-to-debt service ratio has improved from 97% in 2023 to 68% in 2024, providing the country with greater financial freedom. This improvement has allowed for increased spending on essential social services, such as education and healthcare, and enabled the highest allocations from the Federation Account in the nation’s history.
The President expressed optimism about the country’s economic future, highlighting the gradual increase in productivity in the non-oil sector and the potential for sustained growth. He assured Nigerians that the government remains committed to rebuilding the economy and creating a future of prosperity for all.
