The Nigerian Federal Government has announced the release of ₦570 billion in grants to all 36 states to tackle economic hardship and hunger. In a national address on August 4, 2024, President Bola Tinubu emphasized that this funding aims to support citizens facing severe economic challenges.
President Tinubu reported a notable increase in fiscal revenue, with ₦9.1 trillion accumulated in the first half of 2024, a significant rise compared to the previous administration’s earnings. He highlighted that over 600,000 nano-businesses have already benefited from nano-grants, with an additional 400,000 businesses expected to receive support.
The President also outlined a reduction in Nigeria’s debt burden, with revenue spent on debt service dropping from 97% in 2023 to 68% in 2024. He revealed that the administration had cleared approximately $5 billion in foreign exchange obligations without impacting key programs.
President Tinubu introduced the Compressed Natural Gas (CNG) Initiative, designed to reduce fuel import costs, potentially saving over ₦2 trillion monthly and reallocating resources to healthcare and education. This initiative aims to cut fuel costs, reduce inflation, and enhance social services.
In response to recent protests over economic hardship, President Tinubu assured that his administration is open to addressing the concerns of the protesters. He highlighted efforts to boost non-oil sector productivity and announced the distribution of CNG conversion kits to reduce transportation costs and curb inflation, with conversion centers being established nationwide.
This announcement comes as Nigeria grapples with its dependency on imported petroleum products despite its substantial oil reserves, due to low refining capacity. The government’s focus on utilizing Nigeria’s gas resources, previously neglected in favor of oil, represents a strategic shift aimed at long-term economic stability and growth.
