FG Disburses N750bn Grant to 36 States Amid Economic Hardship
FG allocates N750bn grant to 36 states for economic relief...
President Bola Tinubu announces N570 billion disbursement to 36 states, reveals Nigeria's N2 trillion monthly petrol and diesel import expenditure, and outlines efforts to reduce debt and increase investments in social services.
On Sunday, August 4, President Bola Tinubu announced that the Federal Government has disbursed N570 billion to the 36 states to bolster livelihood support for their citizens, providing much-needed relief.
In his nationwide address, President Tinubu revealed startling figures, disclosing that Nigeria's monthly expenditure on importing Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel) stands at a staggering N2 trillion.
During his address, President Tinubu also reported a significant milestone, announcing that the Federal Government's total fiscal revenue for the first half of 2024 reached N9.1 trillion, surpassing the previous administration's earnings and marking a substantial improvement.
President Tinubu noted a striking contradiction in Nigeria's energy landscape, where despite being rich in oil and gas resources, the country had become overly dependent on oil, neglecting its vast gas reserves while shouldering the burden of fuel subsidies.
To address this imbalance, President Tinubu announced that his administration has invested in Compressed Natural Gas (CNG), aiming to transition away from this oil-centric approach and harness the potential of Nigeria's gas reserves, thereby reducing the country's reliance on imported fuels and mitigating the financial strain of subsidies.
“Fellow Nigerians, we are a country blessed with both oil and gas resources, but we met a country that had been dependent solely on oil-based petrol, neglecting its gas resources to power the economy. We were also using our hard- earned foreign exchange to pay for and subsidize its use.
“To address this, we immediately launched our Compressed Natural Gas, CNG, Initiative to power our transportation economy and bring costs down. This will save over N2tn a month, being used to import PMS and AGO and free up our resources for more investment in healthcare and education,” Tinubu stated.
President Tinubu announced that his administration intends to provide one million conversion kits at minimal or no cost to commercial vehicles that transport people and goods, which currently account for 80% of the country's petrol and diesel consumption, in an effort to reduce reliance on imported fuels.
“We have started the distribution of conversion kits and setting up conversion centres across the country in conjunction with the private sector. We believe that this CNG initiative will reduce transportation costs by approximately 60 percent and help to curb inflation,” Tinubu disclosed.
Nigeria's petroleum import dynamics are characterized by licensed individuals importing diesel, while the Nigerian National Petroleum Company Limited holds a monopoly on petrol imports. This reliance on imported petroleum products persists despite Nigeria being Africa's largest oil producer, due to its limited refining capacity.
In his Sunday address, President Tinubu extended an olive branch to protesters involved in the nationwide demonstrations that began on August 1, 2024, expressing his administration's willingness to engage with and address their concerns. He attributed the significant revenue growth in the first half of the year to strategic efforts to plug revenue leakages, implement automation, and explore innovative funding sources, all achieved without imposing additional burdens on citizens.
President Tinubu observed that the non-oil sector is experiencing a steady rise in productivity, achieving unprecedented levels and effectively capitalizing on the present economic landscape, signaling a positive shift towards diversification and growth.
He said, “In the past 14 months, our government has made significant strides in rebuilding the foundation of our economy to carry us into a future of plenty and abundance.
“On the fiscal side, aggregate government revenues have more than doubled, hitting over N9.1 trillion in the first half of 2024 compared to the first half of 2023 due to our efforts at blocking leakages, introducing automation, and mobilizing funding creatively without additional burden on the people.
“Productivity is gradually increasing in the non-oil sector, reaching new levels and taking advantage of the opportunities in the current economic ambience,” Tinubu said.
President Tinubu announced a significant improvement in Nigeria's debt profile, revealing that the debt burden has decreased substantially, with the proportion of revenue allocated to debt servicing dropping from 97% in 2023 to 68% in 2024.
The President reported that Nigeria has successfully settled approximately $5 billion in valid foreign exchange obligations without compromising its programs, further contributing to the country's improved financial standing.
This reduction in debt has afforded Nigeria greater financial flexibility, enabling increased investments in critical social services such as education and healthcare, the President noted. Additionally, this financial upturn has allowed state and local governments to receive the largest-ever allocations from the Federation Account, marking a significant milestone in fiscal decentralization.
“Coming from a place where our country spent 97 percent of all our revenue on debt service; we have been able to reduce that to 68 percent in the last 13 months.
“We have also cleared legitimate. outstanding foreign exchange obligations of about $5 billion without any adverse impact on our programmes. This has given us more financial freedom and the room to spend more money on you, our citizens, to fund essential social services like education and healthcare,” he stated.
No comments:
Leave comment here