Lagos, July 31, 2023: President Bola Tinubu on Monday, promised to work for Nigerians to improve their welfare and living conditions.
He also promised to spend savings from petrol subsidy removal on public transportation, healthcare, schools, housing and national security.
President Tinubu in his National Broadcast on the current economic challenges facing the country, entitled ‘After Darkness Comes The Glorious Dawn,’ said:
“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.
“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.
“ 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.
“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.
Whims of few should never hold dominant sway over hopes, aspirations of many
“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.
“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.
“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.
“It also compounded the threat that the illicit and mass accumulation of money posed to the future of our democratic system and its economy.
“ 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.
“ 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.
Economy going through a tough patch
“ 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.
“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.
“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.
“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.
We’ll spend N75 bn to strengthen manufacturing sector
“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.
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“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.
“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.
“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.
“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.
N1tn saved in 2 months from oil subsidy removal
“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.
“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.
“Our commitment is to promote the greatest good for the greatest number of our people. On this principle, we shall never falter.
“We are also monitoring the effects of the exchange rate and inflation on gasoline prices. If and when necessary, we will intervene.
“I assure you my fellow country men and women that we are exiting the darkness to enter a new and glorious dawn.
“Now, I must get back to work in order to make this vision come true. Thank you all for listening and may God bless the Federal Republic of Nigeria,” he added.
