Edun Gives Account of Increased Oil Revenues Spending from Subsidy Removal

James Emejo in Abuja

Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, yesterday said the administration of President Bola Tinubu was making judicious use of oil money to better the lives of Nigerians.

He said necessary but challenging reforms were implemented, adding that these have affected the cost of living.

He spoke during a high-level panel session titled, “Fiscal Reforms for a More Secure Future” at the ongoing 30th Nigerian Economic Summit (#NES30) with the theme, “Collaborative Action for Growth, Competitiveness, and Stability” in Abuja.

Edun had disputed allegations that despite increased revenues from fuel subsidy removal, there had been no transparency in how the revenues were being expended to improve the lots of the people.

The minister said there’s been an impact on industry costs, agricultural costs, and personal expenses, adding that rom the beginning, government was committed to ensuring that the poor and most vulnerable are not left behind.

He said, “They shouldn’t have to bear the full brunt of these reforms.”

Edun said social programmes have been funded, including stipends of around N20,000  per month to help the most vulnerable.

He said consumer credit was also being extended to workers to help them afford essential household goods and convert their cars to run on cheaper, cleaner fuel.

He said, “There’s a wide range of social investment initiatives that these funds are supporting. To give an example from the agricultural sector, small businesses are being given grants of up to N1 million and loans at a 9 per cent interest rate.

“A total of N75 billion is available for this purpose. Large-scale companies affected by the foreign exchange adjustment, particularly in terms of their profit and loss, can also access N75 billion in N1 billion lots at a 9 per cent interest rate to support their operations.

“This is how the president is allocating the funds from oil production and the microeconomic reforms that have resulted in a five per cent boost to the country’s GDP.”

He said the federal government is currently working on long-term funding, worth trillions of Naira, and at single digit to boost the economy.

The minister said part of the  funding had been earmarked for the housing sector.

He said the intervention had been combined with blended funds from the government to provide people with enough time to pay for their homes.

He said, “As you know, in Morocco, this has led to a housing boom, with developers borrowing equity and constructing homes over one or two years. Buyers, with affordable mortgages and extended payment periods, are ready to move in before or upon completion.”

Edun also said agriculture remained at the heart of the government’s programme, and not just for helping to bring down inflation – but also for creating jobs and getting industry moving.

He said there was a deliberate move to support agro-industrial development across the country.

He said, “As I said, our multilateral government partners are working with us to ensure that this effort—one which clearly requires determination and resilience—will be successful.

“In terms of food production, I want to delve into the specifics of what we are doing to ensure fertilizers, seeds, and food mechanization are provided in the short term.

“We’re aiming for a very successful dry season harvest. Wheat will be planted in November, and rice between January and February. 

“That is a key focus at the moment in the agricultural sector. Of course, we have tractors on the way to support mechanisation.

“We are collaborating with our partners in Brazil on the Green Heritage Project, ensuring that large-scale mechanisation will grow in this critically important sector.”

He said government was looking to constantly monitor how to support smallholder farmers, between the remaining part of the wet season and the upcoming dry season planting.

He said, “We need to provide seeds, fertilizers, and herbicides to help these farmers produce on roughly a million hectares, aiming for a yield of about five tons of grains per hectare.

“This, we believe, will help combat inflation in the short term.”