Key takeaways from President Tinubu’s speech

President Bola Tinubu, in his first speech since taking office, announced several measures to alleviate the economic challenges brought about by the recent reforms.

President Tinubu

He acknowledged the difficulties these reforms caused for Nigerians but emphasized their importance in transforming the economy and promoting prosperity.

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The key highlights of his address are as follows:

1, Manufacturing: The government will invest N75 billion over the next nine months to strengthen the manufacturing sector and create job opportunities.

The scheme will offer loans to 75 scalable enterprises at a 9% annual interest rate, repayable over a maximum of 60 months.

Working capital credits with a 12-month tenor will also be available to support economic growth through the real sector.

2, MSME Support: N125 billion will be allocated to support MSMEs and the informal sector.

This funding aims to address the limited access to capital for businesses that contribute significantly to the economy.

1 million micro-scale businesses will receive N50 billion by next March, with each of the 774 local governments receiving N50,000.

3, N75 Billion Startup Intervention: A fund of N75 billion will be available for 100,000 start-ups and MSMEs.

Entrepreneurs can access loans ranging from N500,000 to N1 million at a 9% annual interest rate, repayable over 36 months, fostering innovation and growth.

4, Agricultural Support: The National Assembly has approved N500 billion for all-year-round farming on 500,000 hectares of farmland.

Specific allocations include N50 billion each for rice and maize production on 150,000 hectares and N50 billion each for wheat and cassava cultivation over 100,000 hectares, addressing the food production state of emergency declared by the president.

5, Transport Support: N100 billion has been allocated to purchase 3,000 twenty-seater buses powered by compressed natural gas, which will be deployed in all states within the next nine months.

Transport companies can obtain credit at a 9% annual interest rate repayable over five years, based on travel intensity per capita, aiming to provide affordable transportation following the fuel subsidy abolishment.

6, Minimum Wage: Plans for a new minimum wage are underway, and the president assures that immediate implementation will follow once talks with labor unions conclude.

This increase in wages aims to boost workers' disposable income amid the fuel subsidy and foreign exchange challenges, although it may contribute to inflationary pressures.

These interventions are part of the government's efforts to address economic hardships and foster growth across various sectors of the Nigerian economy.