Beloved citizens,
I want to discuss our economy with you. It is crucial that you comprehend the justifications for the policy decisions I made in order to address the significant economic difficulties this country has long faced.
2. I won’t use technical language or linger on complex economic principles. I’ll use straightforward language so you understand where I stand. More importantly, so you may understand my perspective on the path to a better, more prosperous economy for our great nation, and hopefully you will share it.
3. I have constantly held the opinion that the fuel subsidy needs to end for a number of years. This once-helpful metric had lost its utility. Each year, the subsidy cost us trillions of Naira. Such a significant number of money may have been better utilized for housing, healthcare, education, public transportation, and even national defense. Instead, it was going into the luxurious bank accounts and deep pockets of a small number of people.
4. This group had accumulated so much money and influence that they posed a severe risk to the integrity of our democratic system of government and the fairness of our economy. To put it bluntly, as long as such tiny, strong, and unelected groups continue to have significant influence over our political economy and the institutions that regulate it, Nigeria will never be the society that it was meant to be.
5. The whims of a select few should never dominate the aspirations of the majority. The people must be in charge if we are to be a democracy, not the power of money.
6. The previous administration was also aware of this impending threat. In fact, it did not include any funding for subsidies after June of this year in the 2023 Appropriations. It was unavoidable to do rid of this once-useful equipment because it had turned into a burden on the nation.
7. In addition, the created multiple exchange rate system devolved into little more than a highway for currency speculation. Money that should have been utilized to construct factories, businesses, and jobs for millions of people was instead misdirected. A select group of people received favorable treatment when it came to our nation’s wealth, and they became extremely wealthy by merely passing money from one hand to another. This was also incredibly unjust.
8. It increased the risk to the long-term health of our democratic system and its economy that the illegal and widespread accumulation of money posed.
9. I had pledged to address the significant imbalances that had harmed our economy in order to improve it for the long term. The key to winning this battle was abolishing the subsidy and the favorable exchange rate system. This conflict will determine the course and future of our country. There is a lot at stake.
10. As a result, a small few—you might call them the elite of the elite—saw enormous financial gain from the flaws in our economy. The people who profit from the defects in the system will inevitably fight back by any means necessary as we work to combat them.
11. You are suffering as a result of the difficult time our economy is going through. The price of petrol has increased. Prices for food and other goods have followed. Families and businesses face difficulties. Things appear tense and unreliable. I am aware of the struggles you go through. I wish there were different options. However, there isn’t. If there was, I would have taken it since I came here to support rather than harm the people and country I love.
12. I can help to lessen the load that our current economic crisis has placed on all of us, particularly on companies, the working class, and the most vulnerable.
13. The federal government is already collaborating closely with state and municipal authorities to put initiatives into place that will ease the suffering of all of our citizens, regardless of socioeconomic status.
14. In keeping with my election promise to reform unfavorable economic policies and numerous levies that are impeding the business environment, earlier this month I signed four (4) Executive Orders. These Executive Orders on the suspension and deferred initiation of some taxes will give manufacturing companies the safety nets and breathing room they need to keep growing and succeeding.
15. Between July 2023 and March 2024, we plan to spend N75 billion to develop the manufacturing sector, increase its capacity for growth, and create high-paying jobs. Our goal is to provide funding for 75 businesses that have the ability to grow their economies sustainably, accelerate structural change, and increase productivity. Each of the 75 manufacturing companies would have access to N1 billion in financing at 9% interest, with working capital loans and long-term loans each having a maximum repayment period of 12 months and 60 months, respectively.
16. Our administration understands the value of informal businesses, small and medium-sized businesses, and other growth-promoting factors. We are investing N125 billion to revitalize this crucial industry.
17. Between now and March 2024, we will allocate N50 billion as a conditional grant to one million nano companies. The 1,300 owners of nano businesses in each of the 774 local governments across the nation are to get N50,000 each as part of our goal.
18. By integrating the program’s participants into the established banking system, this program will ultimately promote financial inclusion even further. Similarly, we will invest N75 billion in 100,000 MSMEs and start-ups. Each company promoter will be eligible to receive between N500,000 and N1,000,000 under this program, with a 36-month repayment period and 9% annual interest.
19. We have engaged with a variety of farmers’ associations and players in the agricultural value chain to further ensure that food prices stay reasonable.
20. We will make sure that basic foods are accessible and reasonably priced in the short and immediate future. To help control prices, I’ve directed the release of 200,000 metric tons of cereals from strategic reserves to be distributed to households in the 36 states and FCT. We are also giving farmers who support our food security agenda access to 225,000 metric tonnes of fertilizer, seedlings, and other inputs.
21. We are continuing with our strategy to assist the year-round cultivation of 500,000 hectares of agriculture. Out of the N500 billion agreed by the National Assembly, N200 billion will be distributed specifically as follows:
-To cultivate 150,000 hectares of rice and maize, our administration will invest N50 billion in each.
Additionally, N50 billion would be set up for the cultivation of 100,000 hectares of both cassava and wheat.
22. This extensive agricultural program will be put into action, with a focus on small-holder farmers, and it will make use of powerful agribusiness firms from the private sector with a huge footprint and a proven track record.
23. In order to build a workable and suitable transaction structure for all stakeholders, the knowledge of commercial banks, microfinance banks, and development finance institutions will be tapped into.
24. Distinguished Nigerians, I swore on my sacred honor to serve you. The only thing that keeps me up at night and throughout the day is how to better your welfare and living conditions.
25. In light of this, I gave the States’ Infrastructure Support Fund my approval. With the help of this new Infrastructure Fund, States will be able to invest in pressing needs, alleviate many of their pain points, and upgrade our aging healthcare and educational infrastructure.
26. To make it easier to transport farm products to markets, the money will also help repair rural access roads. With the help of the fund, our states will become more financially stable and competitive, bringing economic prosperity to Nigerians.
27. One aspect of our concept is to distribute buses to municipal and state governments for mass transit at a significantly lower cost. Up until March 2024, we have budgeted N100 billion for the purchase of 3000 20-seater CNG-fueled buses.
28. Using the amount of travel per capital, these buses will be distributed among the country’s major transportation providers. Under this facility, participating transportation companies will have access to loans with a 60-month repayment horizon at a rate of 9% annually.
29. Along the same lines, we are collaborating with the labor unions to establish a new national minimum wage for employees. I want to let our employees know that their pay will soon be reviewed.
30. We will include funding in the budget for the new minimum wage and general upward review as soon as we come to an agreement on them.
31. I’d want to use this occasion to commend the many private businesses in the Organized Private Sector that have already started offering employees general salary reviews.
32. My fellow Nigerians, this time may be difficult for us, and there is no denying that it is difficult for us. But I kindly ask everyone to focus on the bigger picture and look past the short-term difficulties right now. We’re working on all of our helpful and positive plans. Furthermore, I’m confident that they will succeed.
33. Regrettably, there was a delay between the elimination of subsidies and the completion of these programs. However, the time difference is being quickly closed. Please, I beg you, put your trust in our capacity to deliver and in our concern for your well.
We’ll survive this turbulence, number 34. Nigeria will also be better prepared and able to benefit from the future that lies ahead as a result of the actions we have done.
35. In just over two months, we have prevented the wasteful gasoline subsidy, which mainly benefited fraudsters and smugglers, from costing over a trillion Naira. Now, you and your families will benefit more immediately and directly from the usage of that money.
36. As an illustration, we’ll keep our commitment to make education more accessible to everyone and to help students who need loans for higher education. No student in Nigeria would be forced to forgo their education due to a lack of funds.
37. We pledge to advance the greatest benefit for the most people possible. We won’t budge from this guiding philosophy.
38. We are also keeping an eye on how inflation and exchange rates affect the cost of fuel. We will step in if and when it is required.
39. Rest assured, my fellow citizens; we are emerging from the night into a glorious new day.
40. I must now return to my work in order to carry out this vision.
41. Regarding the Federal Republic of Nigeria, God bless you everyone and thanks you for listening.
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