The economic reform embarked on by the President Bola Tinubu administration has added a new dimension to the country’s economic landscape.
After the President declared that ‘subsidy is gone’ during his inaugural speech in May 2023, Nigerians witnessed a surge in the prices of transportation and foodstuff.
In combating the economic crisis, President Tinubu rolled out different measures, including the distribution of grains to each state and grants to qualified small business owners, as well as interest-free loans for eligible Nigerians.
In addition, he boosted the allocation of each state to ease the suffering of the people. The President also directed that a portal be set up where students can take loans to pursue their studies.
On Thursday, June 27, at the 142nd National Economic Council meeting, President Tinubu unveiled new plans to cushion the effects of his administration’s economic reform, which experts contend will sooner or later yield positive results for the country and its over 200 million citizens.
“Revving up food production”
At last Thursday’s NEC meeting, President Tinubu gave the state governors seven days to submit their plans to increase food production in their respective states to his office. While emphasizing the need to boost food production in the country amid the economic challenges, Tinubu promised to support the initiative, which he believes will end the food crisis in the country and create jobs for young and old Nigerians.
“How much support do you need from me, and in what form? I am prepared to provide it. But we must achieve the result. There is nothing we are doing that is more important than producing high-quality food for our people to consume, buy, and sell. We create jobs in the production of it. And that is before we generate wealth by exporting the excess. It is not beyond us to achieve this for Nigerians,” the President said.
“National Construction and Household Support Programme”
The National Construction and Household Support Programme is also among the new plans President Tinubu has launched to mitigate the economic challenges. With this initiative, the President revealed that each of the 100,000 families across the 36 states will receive a grant of N50,000 for three months consecutively. In addition, he said N155bn will be disbursed for assorted foods, N540bn for household grants, and N10bn allocation for CNG buses for each state.
“CNG conversion 50% splash”
The recent 50% reduction in the conversion cost of Compressed Natural Gas (CNG) kits is part of the President Tinubu administration’s new plans to mitigate the economic challenges and encourage the use of CNG against Premium Motor Spirit (PMS), also known as petrol, which price has gone up since the fuel subsidy was removed. The kits for the conversation are supposed to cost between N1.2m and N1.5m but are now between N600,000 and N750,000 because of the 50% reduction.
Countries like Iran, Pakistan, Argentina, Brazil, and China have adopted CNG-run vehicles due to the surge in fuel costs. CNG is cheaper than diesel and petrol. The Tinubu-led government believes that with many Nigerian vehicles converted to CNG, the heavy reliance on fuel, which is costlier, will reduce, leading to a decrease in transportation costs.
While analysts commend the President Tinubu government for coming up with new initiatives to combat the economic crisis, they urge the state governors to ensure that palliatives get to eligible Nigerians. They also urge the governors to work with the federal government to ensure food production is increased in the country.
