President Bola Tinubu on Thursday July 4 2024 unveiled a N2 trillion accelerated stabilization and advancement plan for the revival of the economy in the short term.
This is as Tinubu is also targeting increasing crude oil production and sales up to two million barrels per day.
The president presented the plan while inaugurating his Presidential Economic Coordination Council (PECC), drawn from different sectors of society and the economy at the State House.
President Tinubu had on March 27 announced the constitution of the PECC, which he personally chairs, assembling members from the federal and sub-national governments, the National Assembly, as well as the private sector.
Speaking at the inauguration ceremony, President Tinubu said: “We have a challenge thrown at us and all of us will have to be careful. I believe today is America’s 158th of their independence while we are celebrating our 25 years of progress in democracy. We have to look back at how we have navigated ourselves and look forward to better economic navigation.
“I can give instructions as the president from my office but I believe so much, deeply in the organised private sector. The partnership to drive the economy of this country, for reforms and stabilization that is necessary, give the incentive where we must and leave the market to control the pricing mechanism and the consumption”.
Tinubu also called for collaboration to increase Nigeria’s grid electricity, saying, “In the face of it, we have the challenge of energy security, we need to work together to include power, oil and gas to increase our own grids electricity. We are determined to do that with your cooperation, collaboration and recommendation”.
The President acknowledged the nation’s shameful electricity generation capacity of about 4.5 gigawatts and pledged to increase oil production to two million barrels per day within the next few months while removing barriers to investments in the sector.
“As a nation, it is so shameful that we have about 4.5 gigawatts, we must increase our oil production too to 2 million barrels per day within the next few months, remove all barriers hindering investments into the sector to enhance competitiveness. We’ve had a challenge thrown at us and all of us will have to be careful”, the President said.
He assured members of the Council, “I am ready to listen to you in all of that. You have seen us from close quarters but we are one. We feel the market pinches differently the price of foodstuff and all of that. I believe Bismarck Rewane will be able to make additional suggestions on what we are lacking and what we should do to stabilize this economy.”
The President acknowledged the challenges faced by the market, particularly in terms of food prices, and expressed his willingness to listen to the private sector leaders for their recommendations on stabilizing the economy.
Tinubu also highlighted the government’s plans for a manufacturing stabilization fund and support for Micro, Small, and Medium Enterprises (MSMEs), saying, “The manufacturing stabilization fund, MSMEs too and other fiscal measures have been narrated, I just want to say thank you for responding to this call”.
Expressing his gratitude to private sector leaders like Aliko Dangote, Tony Elumelu, and others for their participation, he said: “It is Nigeria that is calling, not a Bola Tinubu. And the hope of the entire nation hangs on you people.
“The partnership to drive the economy of this country, for reforms and stabilization that is necessary, give the incentive where we must and leave the market to control the pricing mechanism and the consumption”, he said.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who led selected members of the Council to brief journalists after the briefing, gave a breakdown of the areas to benefit the emergency funding to include Health, Agriculture, Energy/Power and other areas.
He was joined at the briefing by the Minister of Budget and Economic Planning, Senator Abubakar Bagudu; the President of the Dangote Industries Limited, Alhaji Aliko Dangote; and the Founder of the Tony Elumelu Foundation and Chairman of the UBA Group, Mr. Tony Elumelu.
“The President has just inaugurated the Presidential Economic Coordination Council and that is a body that is made up of the President’s Economic Management Team, the Legislature, represented by the leaders of the National Assembly; the Senate President and the Speaker of the House of Representatives, as well as very importantly, the sub-nationals, represented by the chairman of the Nigerian Governors Forum, and, of course, the elite of the private sector.
“They were presented with the outcomes of Mr. President’s review of the accelerated stabilization and advancement plan and that was an emergency plan to cover the next six months, which Mr. President had directed that a combination of his own Economic Management Team and the sub nationals, the governor’s level, and the private sector put together for his consideration.
“The song of that very important exercise is that a N2 trillion package involving N350 billion funding for Health and Social Welfare; N500 billion funding for Agriculture and Food Security; N500 billion for the Energy and Power sector and general business support of about N650 billion.
“In addition to a range of policy measures and tax measures, there is a range of executive orders which Mr. President has signed and which are being gazetted to ease the cost of doing business at this particular time”, he said.
“There are a number of funding which will reduce the cost of interest rate for certain sectors in economy with small and medium scale in particular but also larger companies there is a line of credit that will allow them to fall cheaper than the elevated rate.
This plan is a means of stabilising the economy and getting business growing again, we know what has happened since the microeconomic measures which are necessary and have been implemented in a determined and consistent manner led to elevated cost for industries and for individuals”, he said.
Edun also emphasised that the focus of President Tinubu is on food security, food production and nutrition security, saying “so the commitment to providing food at an affordable price and in available quantity is upper-most on President Tinubu’s mind at this particular time.
