By Dipo Olowookere
President Bola Tinubu says his administration is ready to provide a loan of N75 billion to 75 manufacturers in the country to “kick-start sustainable economic growth, accelerate structural transformation and improve productivity.”
Mr Tinubu made this disclosure when he addressed the nation on Monday night while rolling out the palliatives of the federal government aimed to cushion the effect of the removal of subsidy on premium motor spirit (PMS), also known as petrol.
On May 29, 2023, while he was making his inaugural speech, the President declared an end to fuel subsidy, noting that this was because his predecessor did not make provision for the payment in the 2023 budget from July 1, 2023.
Yesterday, while he was appealing to Nigerians to further bear with him, he noted that his government had to take the tough decision to scrap subsidy because it only benefited a few persons.
According to him, in the last two months, the country has saved about N1 trillion from the policy, stating that this would be channelled into other things that would benefit an average citizen.
“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,” he said.
Mr Tinubu noted that these persons “became a serious threat to the fairness of our economy and the integrity of our democratic governance.”
“The preceding administration saw this looming danger as well. Indeed, it made no provision in the 2023 Appropriations for subsidy after June this year,” he added.
“In a little over two months, we have saved over N1 trillion 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,” the President further said.
He said to jump-start the economy, which he said was “going through a tough patch” and hurting the citizens, the federal government would make available “N75 billion between July 2023 and March 2024” to “strengthen the manufacturing sector, increase its capacity to expand and create good paying jobs.”
“Our objective is to fund 75 enterprises with great potential to kick-start 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 cent per annum with a maximum of 60 months repayment for long-term loans and 12 months for working capital,” Mr Tinubu announced.
He assured that this and other measures his administration took would get out the country “out of this turbulence” and “Nigeria will be better equipped and able to take advantage of the future that awaits her.”
“I assure you, my fellow countrymen and women, that we are exiting the darkness to enter a new and glorious dawn,” he said.
