Tinubu Bemoans State of Economy, Says  After Darkness Comes Glorious Dawn

•Claims national wealth doled on favourable terms to handful of people who became filthy rich

•To spend N75bn to create jobs in manufacturing sector between now and March 2024

•Energises SMEs with N125bn, devotes N100bn to purchase of 3,000 units of 20-seater CNG-fuelled buses

•Orders release of 200,000 metric tonnes of grains to households nationwide 

• To liaise with labour for upward review of minimum wage

•Promises necessary interventions to halt exchange rate depreciation, fuel price increases, inflation

•Tinubu’s broadcast waste of time, Atiku’s aide declares

Deji Elumoye in Abuja

In his maiden national broadcast yesterday, President Bola Tinubu bemoaned the state of the economy, saying after darkness comes glorious dawn. 

The President however decried what he called an unfair economic environment marked by an “unproductive fuel subsidy which only benefitted smugglers and fraudsters” at the expense of the populace.  

Tinubu also decried the hitherto multiple foreign exchange regime under which, “Our national wealth was doled on favourable terms to a handful of people who have been made filthy rich simply by moving money from one hand to another.”

The president acknowledged the extra hardship brought upon the citizenry by the policy measures his new administration had adopted to try to resolve the economic crisis. But he expressed optimism that the economy would pick up with time, in the broadcast titled, “After Darkness Come The Glorious Dawn.”

But Special Assistant on Public Communications to the presidential candidate of the Peoples Democratic Party (PDP) in the 2023 election, Atiku Abubakar, Phrank Shaibu, described Tinubu’s address as uninspiring and deceptive, saying it is a complete waste of time.

Removal of petrol subsidy and harmonisation of the foreign exchange system are two prime policies Tinubu has adopted since coming to office on May 29 to try to fix the economy he inherited from fellow All Progressives Congress (APC) member, Muhammadu Buhari.  

In the address to the nation, aired on national television and radio stations at 7pm, the president empathised with Nigerians over the suffering brought about by the removal of fuel subsidy. He also enumerated several intervention programmes put in place by his administration to ameliorate the pain.

Tinubu stated, “In a little over two months, we have saved over a 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.”

He said he had been a consistent advocate of fuel subsidy removal, stressing, “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.

“This group had amassed so much wealth and power that they became a serious threat to the fairness of our economy and the integrity of our democratic governance.”

He said development would continue to elude Nigeria as long as this opulent few held sway over the political economy and institutions of society.

Tinubu said, “The preceding administration saw this looming danger as well. Indeed, it made no provision in the 2023 Appropriations for subsidy after June this year. 

“Removal of this once helpful device that had transformed into a millstone around the country’s neck had become inevitable.”

Tinubu equally spoke on the foreign exchange system, saying, “Also, the multiple exchange rate system that had been established became nothing but a highway of currency speculation. It diverted money that should have been used to create jobs, build factories and businesses for millions of people.”

He said the exchange regime “also compounded the threat that the illicit and mass accumulation of money posed to the future of our democratic system and its economy”.

On measures to cushion the harsh effects of the policies being implemented to fix the economy, Tinubu mentioned the voting of N75 billion by his government for the creation of jobs in the manufacturing sector between now and March next year.

He said, “To strengthen the manufacturing sector, increase its capacity to expand and create good paying jobs, we are going to spend N75 billion between July 2023 and March 2024. Our objective is to fund 75 enterprises with great potential to kick-start a sustainable economic growth, accelerate structural transformation and improve productivity.

“Each of the 75 manufacturing enterprises will be able to access N1 billion credit at nine per cent per annum with maximum of 60 months repayment for long term loans and 12 months for working capital.”

Tinubu disclosed that the federal government would energise the informal sector, as represented by micro, small and medium-sized enterprises, with N125 billion.

According to him, “Our administration recognises the importance of micro, small and medium-sized enterprises and the informal sector as drivers of growth. We are going to energise this very important sector with N125 billion.

“Out of the sum, we will spend N50 billion on Conditional Grant to one million nano businesses between now and March 2024. Our target is to give N50, 000 each to 1,300 nano business owners in each of the 774 local governments across the country.

“Ultimately, this programme will further drive financial inclusion by on-boarding beneficiaries into the formal banking system. In like manner, we will fund 100,000 MSMEs and start-ups with N75 billion. Under this scheme, each enterprise promoter will be able to get between N500, 000 to N1million at nine per cent interest per annum and a repayment period of 36 months.”

He listed other programmes to include rolling out 3,000 units of 20-seater CNG-fuelled buses at a cost of over N100 billion for distribution to states and local governments.

“These buses will be shared to major transportation companies in the states, using the intensity of travel per capital,” the president said. “Participating transport companies will be able to access credit under this facility at nine per cent per annum with 60 months repayment period,” he added.

The president added that his government would ensure staple foods were available and affordable by the citizenry, explaining that he has ordered the immediate release of 200,000 metric tonnes of grains to households nationwide.

Tinubu stated, “To further ensure that prices of food items remain affordable, we have had a multi-stakeholder engagement with various farmers’ associations and operators within the agricultural value chain.

“In the short and immediate terms, we will ensure staple foods are available and affordable. To this end, I have ordered the release of 200,000 Metric Tonnes of grains from strategic reserves to households across the 36 states and FCT to moderate prices.

“We are also providing 225,000 metric tonnes of fertilizer, seedlings and other inputs to farmers who are committed to our food security agenda.

“Our plan to support cultivation of 500,000 hectares of farmland and all-year-round farming practice remains on course. To be specific, N200 billion out of the N500 billion approved by the National Assembly will be disbursed as follows: 

“Our administration will invest N50 billion each to cultivate 150,000 hectares of rice and maize.

“N50 billion each will also be earmarked to cultivate 100,000 hectares of wheat and cassava.

“This expansive agricultural programme will be implemented targeting small-holder farmers and leveraging large-scale private sector players in the agric business with strong performance record.”

The president assured that a new minimum wage would soon be worked out for workers after necessary dialogue with the labour unions.

According to him, “We are also working in collaboration with the labour unions to introduce a new national minimum wage for workers. I want to tell our workers this: your salary review is coming.

“Once we agree on the new minimum wage and general upward review, we will make budget provision for it for immediate implementation.

“I want to use this opportunity to salute many private employers in the Organised Private Sector who have already implemented general salary review for employees.”

Tinubu disclosed, “We are also monitoring the effects of the exchange rate and inflation on gasoline prices. If and when necessary, we will intervene.”

He also talked about the four Executive Orders he signed recently to address some unfavourable fiscal policies.   

“These Executive Orders on suspension and deferred commencement of some taxes will provide the necessary buffers and headroom to businesses in the manufacturing sector to continue to thrive and expand,” he stated.

Tinubu’s Broadcast Waste of Time, Says Atiku’s Aide

Meanwhile, Shaibu, in a statement, described Tinubu’s national broadcast as uninspiring, deceptive, and a waste of time.

Shaibu said Tinubu’s speech was only meant to convince the organised labour not to embark on their planned nationwide protest.

He maintained that Tinubu’s broadcast was an afterthought after removing petrol subsidy without a clear plan that would have ameliorated the suffering of the people, who had become poorer since APC took power in 2015.

Shaibu stated, “Tinubu’s speech was hurriedly put together in order to dissuade the suffering masses and the organised labour from embarking on protests. Rather than apologise for removing subsidy without providing a cushion for the poor, he went about accusing subsidy thieves of being behind the current suffering. If he is sure of this, why hasn’t he arrested them?”

Shaibu accused Tinubu of lying about his long-standing disposition to fuel subsidy removal.

He said, “Tinubu also lied when he claimed that he had for years been an advocate of subsidy removal. This was a man who in 2012, described petrol subsidy removal as ‘the Goodluck Jonathan tax’ and sponsored protests in Lagos State.

“After he dubiously got to power, he lacked imagination on how to address the issue and then removed the subsidy, but without a plan.”

Shaibu said Tinubu’s so-called plans to provide N50, 000 grants to small businesses would be undermined by inflation, exchange rate problems, and corruption

He stressed, “Tinubu says he will provide N50, 000 (roughly $60) to 1, 300 nano businesses. This is reminiscent of the dubious trader moni and the monthly N20, 000 spent on the public works programme of the last APC government, which not only failed to stimulate the economy but also worsened poverty, as funds went into private pockets.

“What mechanism is in place to ensure that poor Nigerians access this? The answer is, none. This is nothing but deception as we shall all see in the coming weeks.”

Atiku’s aide also questioned Tinubu’s plan to give 500,000 hectares of land to farmers in order to boost agriculture, when the insecurity in the food basket of the nation had not been addressed.

He stated, “The Land Use Act puts lands under the purview of the governors. His so-called plan to provide 500,000 hectares is just part of the deception and a continuation of Buhari’s failed promises.

“Besides, just on Saturday, farmers were killed and others kidnapped in Birnin Gwari, Kaduna State. Till now, there has not been a word from the Presidential Villa.

“Most of the communities being attacked are agrarian communities, which rely on farming. What sort of plan can you implement in the agric sector without first tackling insecurity?”

Shaibu said Tinubu’s claim that minimum wage would soon be reviewed upwards was evidence that he failed to properly plan for the removal of petrol subsidy.

“Shouldn’t the discussion on the increase of minimum wage have been done prior to subsidy removal? This is the height of cluelessness, putting the cart before the horse,” Shaibu stated.