In one of the shortest speeches that a Nigerian president had given, President Bola Tinubu spoke on ‘clear terms’ in his speech.
While some Nigerians and the labour union still see the dark side of his administration’s policy, the President, who is two months in office, could already seeing a new glorious dawn.
First, in his speech, he was clear on his stand on the subsidy removal.
This ‘happy inauguration’ gift has shot the nation to a period of inflation, a kind that has never been seen.
Subsidy: A Thing Of The Past
Addressing Nigerians on Monday, July 31, two months after he made the infamous “Subsidy Is Gone” statement, President Tinubu again emphasised that there was no way Nigeria would move forward with a subsidy regime.
Indeed, subsidy is a thing of the past.
He began: “My fellow citizens, I want to talk to you about our economy.
“It is important that you understand the reasons for the policy measures I have taken to combat the effect of the challenges this nation had long faced.
“I am not going to talk in difficult terms by dwelling on economic jargon and concepts.
“I will speak in plain, clear language, so that you know where I stand.
“More importantly so that you see and hopefully share my vision, regarding the journey to a better, more productive economy for our believed country.
“For several years, I have consistently maintained the position that the fuel subsidy are to go.
“This once beneficial measure had outlived its usefulness.
“The subsidy costs us trillions of Naira yearly.
“Such a vast sum of money would have been better spent on public transportation, healthcare, school, housing and even national security,” the President said, emphasising his position.
While he spoke, comments poured in on different online platforms,. His speech had raised expectations from Nigerians both at home and abroad.
He maintained that subsidy had funneled the nation’s money “into the deep pocket and lavish bank accounts of a selected group of individuals”.
A Millstone
“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.
“To be blunt, Nigeria could never become the society it was intended to be, as much as such powerful, yet unelected group hold enormous influence over our political economy and the institutions that govern it.
“The wimps of the few will never hold dominant sway over the hopes and aspirations of the many.
“If we are to be a democracy, the people and not the power of money must be sovereign. The preceding administration saw this looming danger as well
“Indeed, it made no provision in the 2023 appropriation for subsidy after June this year,” he said, shifting a part of the load that his administration is now carrying on the shoulders of President Muhammadu Buhari’s administration.
According to him, the “removal of this once helpful device, that are transformed into a millstone around the countries neck had become inevitable”.
“Also, the multiple exchange rate, a system that has 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.
“Our national wealth was doled out on favourable terms to a handful of people make riches simply by moving money from one hand to another.
“This too was extremely unfair and it is not acceptable.
“It also compounded the threat that the illicit and mass accumulation of money posed to the future of our democratic system and its economy,” he said, speaking above the heads of a common Nigerian who wants a three-square meals.
Promised To Reform
During his campaign days, he had made promises to Nigerians. The bedrock was to renew the hope to an average Nigerian.
But what that Nigerian is facing now is nothing near hope.
However, President Tinubu recognised this pain and made further promises.
“I had promised to reform the economy for the long term good by fighting major imbalances that had plagued our economy, ending the subsidy and the preferential exchange rate system.
“This fight is to define the fate and future of our nation. Much is in the balance.
“Thus, the defects in our economy immensely profited a tiny elite, the elite of the elite you might call them.
“As we moved to fight the flaws in the economy, the people who grow rich from them, predictably, will fight back through every means necessary.
“But we are ready. Our economy is going through a tough patch and you are being hurt by it. I know.”
The Hardship You Face
In the past two months, Nigerians have seen price of petrol move up twice. They are not sure of what the next few months hold.
On this ground, the President also reassured Nigerians on his position on the hardship many say does not get to places of leadership.
He insists he understands, but does he really experience it? people have asked.
“The cost of fuel has gone up, food and other prices have followed it. Household and businesses are struggling. Things seem anxious and uncertain.
“I understand the hardship you face. I wish there were other ways but there is not.
“If there were, I would have taken that route as I came here to help, not to hurt the people nor the nation that I love so dearly
“What I can offer in the immediate is to reduce the burden of current economic situation has imposed on all of us, most especially, on businesses the working class and most vulnerable among us.
“We are ready.
“The Federal Government is working closely with states and other level governments to implement interventions that will cushion the pains of our people across all economic brackets.”
To Thrive And Expand
Some days ago, President Tinubu forwarded a document to the National Assembly asking for approval of 500 billion Naira subsidy palliative.
Furthermore, in his speech, he gave insight into what his government would do with the 500 billion Naira.
“Earlier this month, I signed four executive orders in keeping with my electoral promise to address unfriendly fiscal policies and multiple taxes that are stabling the business environment
“The executive orders on suspension of some taxes will provide the necessary buffers and headroom to businesses in the manufacturing sector to continue to thrive and expand.
“To strengthen the manufacturing sector, increase its capacity to expand and create good paying jobs, we are going to spend 75 billion between July 2023 and March 2024.
“Our objective is to fund minimum of 75 enterprises, with great potential to kickstart a sustainable economic growth, accelerated structural transformation and improved productivity.
“Each of these 75 manufacturing enterprises will be able to access 1 billion Naira credit at maximum of 9% per annum, with maximum of 60 month repayment for a long term loans and 12 months.
“Our administration recognises the importance of Micro Small and Medium Size Enterprises (MSMEs) and the informal sector as the drivers of growth
“We are going to energise this important sector with 125 billion Naira. Out of this fund, we will spend 50 billion Naira conditional grant to one million Nano businesses between now and March 2024.
Financial Inclusion
“Our target is to give a minimum of 50,000 each to 1,300 Nano businesses owners in each of the 774 local governments across the country.
“Ultimately, this programme will further drive financial inclusion by onboarding beneficiaries into the formal banking system
“In like manner, we will fund 100,000 MSMEs and startups with 75 billion (Naira).
“Under this scheme, each enterprise promoter will be able to get between 500,000 Naira and one million Naira at the maximum 9% interest per annum and repayment period of 36 months,” he explained.
How Might These Things Be?
In the midst of his speech, Nigerians in the comment section of different online platforms it aired continued to ask how might these things be?
How can these figures impact the current state they are in; especially in the short-term.
To this end, president Tinubu emphasised that there was a plan to push food prices down.
How can this happen in the nearest possible time? Things are already falling apart, critics say.
In Adamawa, for instance, some persons pushed to the wall had already bounced with a ‘fight’, breaking into warehouses, and taking away bags of grains.
It is a sign of how hard things had become. Who knows how many states will follow.
Despite these perspectives, the President emphasised what his administration would do in this regard.
“To further ensure that food prices and the items remain affordable, we have had a multi-stakeholders engagements with various farmers and associations and the operators within the agricultural value chain.
“In short and immediate terms, we will ensure that stable foods are available and affordable.
“To this end, I have ordered release of 200,000 metric tons of grains from strategic reserves to households across the 36 states and FCT.”
Moderate Prices Of Food
Furthermore, he said the government would moderate prices of food items by providing fertiser, seedlings and other inputs to farmers.
Farmers that are to benefit are those committed to the government’s food security agenda.
The other aspects that the government is exploring are cultivation of 100,000 hectares of farmland and all year-round farming practice.
Also, the government will spend 200 billion on the production of food. This money is part of the 500 billion Naira that the National Assembly approved recently.
According to him, 50 billion Naira each would be spent on rice and maize farming.
He says another 50 billion Naira each would be spent in cultivation of wheat and cassava.
Also, the government would support the cultivation of 100,000 hectares, targeting small farm holders and leveraging large scale private sector players in agriculture.
The government will select the beneficiaries by their strong performance record.
On the flip side, the heat that the situation in Nigeria is whipping up, is forcing the labour union to consider a strike.
Recently, the unions are hopeful that the strike would push the government to take deeper actions that are tangible.
On the level of negotiation with the unions, President Tinubu said he was in talks with the union.
One area the talks are on is the salary increment, which is part of labour unions’ demands.
He expressed gratitude to some private sector businesses that had implanted a raise in salary before the new minimum wage.
However, he did not give timeline to when the new minimum wage will come.
Cost Of Transportation
Basically, one of the areas that Nigerians are feeling the effect of subsidy removal is in cost of transportation.
The president said that his government had an arrangement ongoing that would provide some vehicles to lower the cost of transportation.
About 100 billion Naira will go into acquiring a minimum of 3,000 unites of 20-seater mass transit bus.
“The buses will be shared to major transportation companies in the state using the intensity of travel-per-capital.
“We are working with the labour unions to introduce a new national minimum wage for our workers.
“You salary review is coming.
“Once we agree, we will make budget provision for it.”
Look Beyond The Present
Will Nigerians be able to wait for this imaginary future that the president is seeing and painting while delivering the speech?
Will they be able to go through the hardship and bear the scare till these things come?
These are questions that ran through the mind, as people watched him speak.
It is a position that the president also acknowledged. Although, he said he was aware that the removal came without any palliative on ground.
“Fellow Nigerians, this period may be hard on us, and there is no doubt that it’s tough on us.
“But I urge you all to look beyond the present temporary pains and aim at the larger picture
“All our good and helpful plans are in the works.
“More importantly, I know that they will work.
“Sadly, there was an unavoidable lag, between subsidy removal and these plans coming fully online.
“However, we are swiftly closing the gap and plead with you; please, have faith in our ability to deliver and our concern for your wellbeing.
“We will get out of this turbulence and due to the measures, we are taking, Nigeria will be better equipped and able to take the advantage of the future that awaits her.”
Savings From Subsidy Removal
Where is the subsidy money? most Nigerians have asked.
In the speech also, the President highlighted how much Nigeria had saved.
“In a little over two months, we have saved over a trillion Naira that could have been squandered on the unproductive fuel subsidy which only benefited smugglers and fraudsters.
“That money will now be used more directly and more beneficiary for you and your families.
“For example, we shall fulfill our promise to make education ore affordable to all and provide loans to higher education students who may need them.
“No Nigerian student will have to abandon higher education because of lack of money.
“Our commitment is to promote the greatest good to the greatest number of our people.
“On principle, we shall never falter.”
Exiting The Darkness – High Forex Rate And Inflation
After his inauguration, President Tinubu floated the exchange rate, unifying all of the rates.
Since then, the Naira has lost its padded grounds, doing over 850 Naira to a dollar.
“We are also monitoring the effects of the exchange rate and inflation on gasoline prices.
“If and when necessary, we will intervene.
“I assure you my fellow country men and women that we are exiting the darkness to enter a new and glorious dawn.
“Now, I must get back to work in order to make this vision come true.
“Thank you all for listening and may God bless the Federal Republic of Nigeria.”
If you will love to explore agriculture, here is a video that will show you how to go about cassava farming and benefit from Tinubu’s Farmer’s funds.