• Says FG to spend N75bn to strengthen manufacturing sector, N125bn on MSMEs
• To provide 3000 20-seater mass transit buses
• assures workers new minimum wage underway
• Saves one trillion Naira in two months
By Egena Sunday Ode
As the harsh effects of the recent petrol subsidy removal continues to hit Nigerians, President Bola Tinubu on Monday announced a number of measures meant to assuage the situation.
Among the packages announced in a nationwide broadcast were the provision of a whopping N75 billion to be spent on 75 enterprises to strengthen the manufacturing sector.
The President also said no fewer than 100,000 MSMEs would be energised, even as robust arrangements have been made to reduce the rising cost of food.
“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.
“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.
“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.
“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.”
“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.
“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.
“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.
“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.
“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.”
President Tinubu also announced that N100 billion would be provided for the purchase of about 3000 mass transit buses to ease transportation challenge being encountered by citizens.
According to Tinubu distributed to the states and local governments.
He said: “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.
“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.”
On the salary increase, the President said as soon conclusions were reached on the matter, adequate budgetary provisions would be made for full implementation.
“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.
“Once we agree on the new minimum wage and general upward review, we will make budget provision for it for immediate implementation.
“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.”
Tunubu said he understood the pain that the times had imposed on citizens, explaining that all the steps he had taken since the inception of his administration were to ensure a better country where prosperity would abound.
The President announced that the government has saved over one trillion Naira in just two months, noting that but for the removal of subsidy, that humongous amount would have gone into undeserving g private pockets.
