AFTER DARKNESS COMES THE GLORIOUS
DAWN
My fellow citizens,
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.
2. 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.
3. For several years, I have
consistently maintained the position that the fuel subsidy had to go. This once
beneficial measure 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.
4. This group had amassed so much
wealth and power that they became a serious threat to the fairness of our
economy and the integrity of our democratic governance. 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.
5. The whims of the few should
never 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.
6. 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.
7. 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.
8. It also compounded the threat
that the illicit and mass accumulation of money posed to the future of our
democratic system and its economy.
9. 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.
10. Thus, the defects in our
economy immensely profited a tiny elite, the elite of the elite you might call
them. As we moved to fight the flaws in the economy, the people who grow rich
from them, predictably, will fight back through every means necessary.
11. 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.
12. What I can offer in the
immediate 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.
13. 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.
14. 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 to businesses in the
manufacturing sector to continue to thrive and expand.
15. 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 9% per annum with maximum of 60 months repayment for long
term loans and 12 months for working capital.
16. 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.
17. 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.
18. 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 N1million at 9% interest per annum and a repayment
period of 36 months.
19. To further ensure that prices
of food items remain affordable, we have had a multi-stakeholder engagement
with various farmers’ associations and operators within the agricultural value
chain.
20. In the short and immediate
terms, we will ensure staple foods are available and affordable. To this end, I
have ordered the release of 200,000 Metric Tonnes of grains from strategic
reserves to households across the 36 states and FCT to moderate prices. We are
also providing 225,000 metric tonnes of fertilizer, seedlings and other inputs
to farmers who are committed to our food security agenda.
21. Our plan to support
cultivation of 500,000 hectares of farmland and all-year-round farming practice
remains on course. To be specific, N200 billion out of the N500 billion
approved by the National Assembly will be disbursed as follows:
-Our administration will invest
N50 billion each to cultivate 150,000 hectares of rice and maize.
-N50 billion each will also be
earmarked to cultivate 100,000 hectares of wheat and cassava.
22. This expansive agricultural
programme will be implemented targeting small-holder farmers and leveraging
large-scale private sector players in the agric business with strong performance
record.
23. In this regard, the expertise
of Development Finance Institutions, commercial banks and microfinance banks
will be tapped into to develop a viable and an appropriate transaction
structure for all stakeholders.
24. Fellow Nigerians, I made a
solemn pledge to work for you. How to improve your welfare and living condition
is of paramount importance to me and it’s the only thing that keeps me up day
and night.
25. It is in the light of this
that I approved the Infrastructure Support Fund for the States. This new
Infrastructure Fund will enable States to intervene and invest in critical
areas and bring relief to many of the pain points as well as revamp our
decaying healthcare and educational Infrastructure.
26. The fund will also bring
improvements to rural access roads to ease evacuation of farm produce to
markets. With the fund, our states will become more competitive and on a
stronger financial footing to deliver economic prosperity to Nigerians.
27. 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.
28. 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.
29. In the same vein, we are also
working in collaboration with the Labour unions to introduce a new national
minimum wage for workers. I want to tell our workers this: your salary review
is coming.
30. Once we agree on the new
minimum wage and general upward review, we will make budget provision for it
for immediate implementation.
31. I want to use this
opportunity to salute many private employers in the Organised Private Sector
who have already implemented general salary review for employees.
32. Fellow Nigerians, this period
may be hard on us and there is no doubt about it that it is tough on us. But I
urge you all to look beyond the present temporary pains and aim at the larger
picture. All of our good and helpful plans are in the works. More importantly,
I know that they will work.
33. Sadly, there was an
unavoidable lag between subsidy removal and these plans coming fully online.
However, we are swiftly closing the time gap. I plead with you to please have
faith in our ability to deliver and in our concern for your well-being.
34. We will get out of this
turbulence. And, due to the measures we have taken, Nigeria will be better
equipped and able to take advantage of the future that awaits her.
35. In a little over two months,
we have saved over a trillion Naira that would have been squandered on the
unproductive fuel subsidy which only benefitted smugglers and fraudsters. That
money will now be used more directly and more beneficially for you and your
families.
36. For example, we shall fulfill
our promise to make education more affordable to all and provide loans to
higher education students who may need them. No Nigerian student will have to
abandon his or her education because of lack of money.
37. Our commitment is to promote
the greatest good for the greatest number of our people. On this principle, we
shall never falter.
38. We are also monitoring the
effects of the exchange rate and inflation on gasoline prices. If and when
necessary, we will intervene.
39. I assure you my fellow
country men and women that we are exiting the darkness to enter a new and
glorious dawn.
40. Now, I must get back to work
in order to make this vision come true.
41. Thank you all for listening
and may God bless the Federal Republic of Nigeria.
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