Tinubu launches multi-sectoral economic stabilization program

President Bola Tinubu on Thursday inaugurated the Presidential Economic Coordination Council (PECC) and launched the Economic Stabilisation Programme aimed at ensuring food security, improving energy supply, enhancing social and health welfare, increasing energy production and overall transformation of the economy.

Speaking at the inaugural meeting of the 31-member Council held at the Council Chamber, Aso Rock Villa, Abuja, President Tinubu, the Council Chairman, in a statement issued through the Presidential Spokesman, Ajuri Ngelale, emphasised the need for innovative solutions to the country’s economic problems, noting the importance of public-private partnerships in driving economic reforms.

“We have an energy security challenge in Nigeria. We need to work together to improve our oil and gas sector, and we need to increase electricity generation and distribution across the country.

“We are committed to doing this with your cooperation, collaboration and recommendations. As a nation, it is so shameful that we are still generating 4.5 GW of electricity.

“We need to increase our crude oil production to two (2) million barrels per day in the next few months and we are committed to removing all entry barriers to investment in the energy sector while increasing competitiveness,” the President stated.

President Tinubu announced measures that will be implemented concurrently with the National Household Housing and Support Programme to stabilise the economy, increase job creation and promote economic security.

The Economic Stabilization Program funds include:

Energetic safety:

The Energy Security Initiative, which covers the energy, oil and gas sectors, aims to:

– Increasing the electricity capacity delivered to homes and businesses from approximately 4.5 gigawatts to 6 gigawatts within six months;

– Increase oil production to 2 million barrels per day within the next 12 months; and

– Removing entry barriers to investment in the sector in order to increase competitiveness.

Agriculture and food security:

The purpose of this plan is to:

– Increasing staple crops grown by smallholder farmers from 127 million tonnes in 2023 to 135 million tonnes this year;

– Strengthening production through cooperation with larger commercial farmers;

– Supporting skilled farmers with satellite imagery to plan land use, crop rotation and monitor agricultural expansion.

Health and social care:

In the health and social care sector, the federal government has the obligation to:

– Ensure 80-90 million Nigerians have access to essential medicines at a lower cost;

– Expanding health insurance coverage to 1 million vulnerable people through the Vulnerable Groups Fund in partnership with state governments;

– Redeploying 20,000 healthcare workers to provide services to 10-12 million patients in areas where they are needed most;

– Power 4,800 primary health care centres (PHCs) and secondary and tertiary hospitals using renewable energy sources.

Fiscal measures:

Some of the interventions aimed at improving access to finance for the housing, SME and manufacturing sectors include:

– Youth-Led Enterprises: Support to new and existing youth-led enterprises in all 36 states of the Federation, creating 7,400 SMEs in the next 6-12 months;

– MSME Support: Six hundred and fifty billion naira (N650 billion) will provide cheaper short-term facilities to youth-owned, manufacturer-owned and MSME-owned businesses in various industries; food processing, pharmaceuticals, agriculture, and wholesale and retail trade. This funding will be based on current and future receivables, company valuation and market demand for products;

– The Production Sector Stabilization Fund will revitalize about two hundred and fifty enterprises and provide cheaper (9.0%–11.0%) long-term facilities to large, medium and small producers who produce finished goods for the domestic and export markets;

– Sub-National Matching Fund: A Nigeria Development Fund consisting of a portfolio of single-digit interest rate loans with the Bank of Industry and a matching fund arrangement with sub-national governments for the development of SMEs;

– Expansion of the Bank of Industry’s Rural Development Programme: a fund to support rural economies in developing 300 new SMEs in each state, including the Federal Capital Territory (Abuja), leading to the creation of 11,100 new SMEs in rural areas across the Federation;

– Mortgage Finance Acceleration Facility: A facility that provides affordable housing to all segments affected by cost of living challenges. It will support the construction of an additional 25,000 housing units.

The fiscal measures will improve SMEs’ access to finance and as a result create 4.7 million direct and indirect jobs over a period of six to twelve months.

Underlining the gravity of the task ahead, Vice President Kashim Shettima, who is the Vice Chairman of the Council, said President Tinubu intends to propose solutions to the country’s economic problems and not to place blame on anyone.

“I want to emphasize that where there’s a will, there’s a way, and the president doesn’t believe in assigning blame. He believes in developing solutions,” the vice president said.

The Minister Coordinator of the Economy and the Minister of Finance, Mr. Wale Edun, presented the most important elements of the Accelerated Stabilization and Development Plan, previously submitted to the President.

The plan identifies economic issues to be decided in 2024 by subcommittees in the key sectors of agriculture and food security, energy (oil, gas, power), health and social care, and business support.

Speaking to State House correspondents after the meeting, Heirs chairman and Nigerian economist, Tony Elumelu, said the president’s target of producing 2 billion barrels of crude oil per day was achievable.

He emphasised the need to improve energy generation in Nigeria.

“All of this is aimed at creating prosperity for our society, creating economic hope and creating jobs for our young people.

So we hope that with the cooperation of the private sector with the FG, the situation will start to improve. This is the aspiration, and all the financial resources approved now are intended to achieve a better life”

Dangote Foundation President, Aliko Dangote, has pledged support for the private sector to invest in creating jobs for Nigerians.

He emphasised the role of policy implementation, adding that PECC members are competent enough to advise the government on appropriate policies.

“The council will advise the government on what kind of policy to implement. Most of these things we already have and they have been discussed many times. I think the people selected for the committee are good enough to advise the government on how to implement policy.

The private sector will support the government in large-scale investment and job creation

“The government is not creating jobs, but it is giving us the right policies, we can see interventions in the gas sector and the launch of OB3, which will bring an additional $2 billion to the country.

“I keep saying that our problems are not that serious. The economy can be rebuilt in a few months and I think we are on the right track.

“The Council also comprises the President of the Senate, the Speaker of the House of Representatives, the Chairman of the Nigerian Governors’ Forum, twelve Ministers and the Governor of the Central Bank of Nigeria.”

The members of the organised private sector are: Alhaji Aliko Dangote; Mr Tony Elumelu; Alhaji Abdul Samad Rabiu; Mrs Amina Maina, Mr Segun Ajayi-Kadir; Dr Funke Opeke; Dr Doyin Salami; Mr Patrick Okigbo; Mr Kola Adesina; Mr Segun Agbaje; Mr Chidi Ajaere; Mr Abdulkadir Aliu; and Mr Rasheed Sarumi.