In response to mounting economic difficulties and hunger, the Nigerian Federal Government has unveiled a substantial ₦570 billion grant to all 36 states.
Announced by President Bola Tinubu on August 4, 2024, the funding is aimed at improving livelihoods for those most affected by economic challenges.
President Tinubu highlighted a significant fiscal achievement, reporting a revenue increase to ₦9.1 trillion for the first half of 2024, a considerable jump from previous earnings.
He noted that over 600,000 nano-businesses have benefited from nano-grants, with plans to extend support to an additional 400,000 businesses.
The President also reported a decrease in the national debt burden, with debt service expenses dropping from 97% in 2023 to 68% in 2024.
The administration has cleared approximately $5 billion in foreign exchange obligations while maintaining key programs.
Additionally, Tinubu introduced the Compressed Natural Gas (CNG) Initiative, aimed at reducing fuel import costs and potentially saving over ₦2 trillion monthly.
This initiative is set to shift focus from oil to gas resources, with efforts to cut transportation costs and curb inflation through the distribution of CNG conversion kits and establishment of conversion centers nationwide.
The government also remains responsive to public concerns, particularly those raised during recent protests, and continues to enhance productivity in the non-oil sector.
President Tinubu emphasized the administration’s progress in economic reform, aiming for a future of abundance and stability.
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 N9.1tn in the first half of 2024 compared to the first half of 2023 due to our efforts at blocking leakages, introducing automation and mobilising 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.
He said his administration would distribute one million kits of extremely low or no cost to commercial vehicles that transport people and goods, and who currently consume 80 per cent of the imported petrol and diesel.
“We have started the distribution of conversion kits and setting up of conversion centres across the country in conjunction with the private sector. We believe that this CNG initiative will reduce transportation costs by approximately 60 per cent and help to curb inflation,” Tinubu disclosed.
While licensed individuals have been importing diesel into Nigeria, the Nigerian National Petroleum Company Limited remains the sole importer of petrol into the country.
Despite being the largest oil producer in Africa, Nigeria depends on imported petroleum products due to low refining capacity.
