Subsidy: Tinubu okays N500bn palliative, 3,000 buses

President Ahmed Tinubu on Monday announced the release of N500bn palliative even as he promised a new wage for workers.

In a move to assuage the agony of Nigerians who are smarting from the pains of the fuel subsidy removal, the President also said 3,000 buses would be provided to address the high transportation fares occasioned by the hike in fuel pump prices.

Tinubu reeled out the promises in a nationwide broadcast on Monday evening titled, ‘After darkness comes the glorious dawn.’

The announcement is coming less than 24 hours to a planned strike and protests by the Nigerian Labour Congress over the removal of the fuel subsidy and the failure of the Federal Government to implement palliatives to cushion the attendant hardships.

But taking time to explain the reasons for the policy measures his administration had so far taken to combat the economic challenges facing the country, the President disclosed plans to roll out 3,000 CNG-fuelled mass transit buses in states and local council areas.

He said the Federal Government is working closely with states and local governments to implement interventions that will cushion the pains of the populace across socio-economic brackets.

Part of the programme, according to him, is to roll out the buses across the states and local governments for mass transit at a much more affordable rate.

He said his administration planned to invest N100bn between now and March 2024 to acquire 3,000 units of 20-seater CNG-fuelled buses.

The buses, he said, would be shared to major transportation companies in the states, using the intensity of travel per capital, adding that participating transport companies will be able to access credit under this facility at 9 per cent per annum with 60 months repayment period.

Tinubu stated, ‘’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.’’

According to him, manufacturers, medium and small scale enterprises and farmers will get a whopping N500bn share of the palliatives that would be rolled out.

He said, ‘’ Our plan to support cultivation of 500,000 hectares of farmland and all-year-round farming practice remains on course. To be specific, N200bn out of the N500bn approved by the National Assembly will be disbursed as follows:

“Our administration will invest N50bn each to cultivate 150,000 hectares of rice and maize. N50bn 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 a 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.’’

Tinubu admitted that the economy was going through a tough patch and citizens were being hurt by it, citing the high cost of fuel, food prices and others.

To ease the hardship, he said his administration desired to reduce the burden the current economic situation has imposed on citizens, businesses, the working class and the most vulnerable.

The President noted, ‘’Earlier this month, I signed four 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.

‘’To strengthen the manufacturing sector, increase its capacity to expand and create good paying jobs, we are going to spend N75bn 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 N1bn credit at 9 per cent per annum with maximum of 60 months repayment for long term loans and 12 months for working capital.’’

Unveiling other palliatives, Tinubu added, ‘’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 N125bn.

‘’Out of the sum, we will spend N50bn on Conditional Grant to one 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 N75bn. Under this scheme, each enterprise promoter will be able to get between N500,000 to N1million at 9 per cent interest per annum and a repayment period of 36 months.’’