Tinubu Unveils N2trn Economic Stabilisation Plan

• Tells Private Sector, ‘Hope of Entire Nation Hangs on You,
• 2m pbd is achievable – Elumelu
• Our own issues are not that bad – Dangote

From Juliana Taiwo-Obalonye, Abuja

In a move to revive Nigeria’s struggling economy, President Bola Tinubu has announced a N2 trillion economic stabilization plan.

The plan, which aims to revitalize the country’s economy over the next six months, was unveiled during the inauguration of the Presidential Economic Coordination Council (PECC).

The PECC, established in March, is chaired by President Tinubu and includes key government figures such as the Vice-President, President of the Senate, and Chairman of Governors’ Forum Chairman.

Prominent private sector leaders, including Aliko Dangote and Tony Elumelu, Bismarck Rewane will serve on the council for a one-year term.

Tinubu’s administration has faced criticism for its economic reforms, including the removal of fuel subsidies and foreign exchange controls. However, the government remains optimistic that the short-term pain will yield long-term benefits and attract foreign investment.

Speaking at the inauguration of the PECC, President Tinubu expressed his gratitude to private sector leaders like Aliko Dangote, Tony Elumelu, and others for their participation, stating, “It is Nigeria that is calling, not a Bola Tinubu. And the hope of the entire nation hangs on you people.”

Tinubu emphasised his belief in the power of the organised private sector to drive the country’s economic reforms and stabilization, saying, “The partnership to drive the economy of this country, for reforms and stabilization that is necessary, give the incentive where we must and leave the market to control the pricing mechanism and the consumption.”

Addressing the immediate economic challenges, the President recalled that he declared a state of emergency on food security and outlined plans to increase oil production, improve power generation, and leverage infrastructure development to boost agriculture and electricity supply.

“We have a challenge thrown at us and all of us will have to be careful. I believe today is America’s 158th of their independence while we are celebrating our 25 years of progress of democracy. We have to look back at how we have navigated ourselves and look forward better economic navigation,” Tinubu said.

The President stated, “I can give instructions as the president from my office but I believe so much, deeply in the organised private sector. The partnership to drive the economy of this country, for reforms and stabilization that is necessary, give the incentive where we must and leave the market to control the pricing mechanism and the consumption.”

On the challenges in the energy sector, Tinubu called for collaboration to increase Nigeria’s grid electricity, saying, “In the face of it, we have the challenge of energy security, we need to work together to include power, oil and gas to increase our own grids electricity. We are determined to do that with your cooperation, collaboration and recommendation.”

The President acknowledged the nation’s shameful electricity generation capacity of about 4.5 gigawatts and pledged to increase oil production to two million barrels per day within the next few months, while removing barriers to investments in the sector.

“As a nation it is so shameful that we have about 4.5 gigawatts , we must increase our oil production too to 2 million barrels per day within the next few months, remove all barriers hindering investments into the sector to enhance competitiveness. We’ve had a challenge thrown at us and all of us will have to be careful,” Tinubu said.

He assured members of the council that, “I am ready to listen to you in all of that. You have seen us from close quarters but we are one. We feel the market pinches differently the price of food stuff and all of that. I believe Bismarck Rewane will be able to make additional suggestion on what we are lacking and what we should do to stabilize this economy.”

The President acknowledged the challenges faced by the market, particularly in terms of food prices, and expressed his willingness to listen to the private sector leaders for their recommendations on stabilizing the economy.

Tinubu also highlighted the government’s plans for a manufacturing stabilization fund and support for Micro, Small, and Medium Enterprises (MSMEs), stating, “The manufacturing stabilization fund, MSMEs too and other fiscal measures have been narrated, I just want to say thank you for responding to this call.”

Briefing State House Correspondents, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated that the N2 trillion package will prioritize food security, social welfare, energy, and health.

He explained that the PECC is a made up of the President’s Economic Management team, the legislature represented by the leadership of the National Assembly, the Sub-nationals represented by the Chairman Nigeria’s Governors’ Forum as well as top economists and the elites of the Nigerian Private Sector.

Edun said the council members were presented with the outcomes of the President’s review of the accelerated stability stabilisation and advancement plan.

He described the plan as an emergency plan that will cover the next six months following the approval of the sum of N2trillion intervention package.

He explained that the package involves the sum of N350 billion funding for health and social welfare, N500 billion funding for Agriculture and food security, N500 billion for the energy and power sector as well as N650 billion approved for general business support.

The Minister added that the intervention are in addition to range of ta measures being gazetted to ease the cost of doing business.

He further explained that there are other funding measures introduced to reduce cost of interest rate for certain sectors in the economy specifically with focus on boosting small and medium scale businesses.

Edun added that the Council is a mix of top talents and top stakeholders within the Nigerian business sector.

“This is in addition to a range of promising tax measures, there is a range of Executive orders which the President’s signed and are been gazetted to ease the cost of doing business at this particular time.

“There are a number of funding which will reduce the cost of interest rate for certain sectors in economy with small and medium scale in particular but also larger companies there is a line of credit that will allow them to fall cheaper than the elevated rate .

“This plan is a means of stabilising the economy and get business growing again, we know what has happened since the micro economic measures which are necessary and have been implemented in a determined and consistent manner led to elevated cost for industries and for individuals”.

The Minister of Finance emphasised that the focus of President Tinubu is on food security, food production and nutrition security.

“So the commitment to providing food at an affordable price and in available quantity is upper most on president Tinubu’s mind at this particular time.

Edun further mentioned the President’s committment to reducing the losses in the crude oil sector as well as getting crude oil production and sales upto two million barrels per day.

Chairman Heirs holder and Nigerian Economist, Elumelu also briefing newsmen, said the President’s target of 2 million barrel crude oil production per day target is achievable.

He underscored the need to improve power generation in Nigeria.

“All of these is about creating prosperity for our people, it is all about creating economic hope and creating jobs for our young ones

“So we hope that with the private sector working with the federal government things will begin to improve. That is the aspiration and about the money approved now for disbursement are all targeted to achieving better life”

President Dangote Foundation, Dangote pledged the support of the private sector in investing in job creation for Nigerians.

He emphasised the place of policy implementation adding that personalities of members of the PECC are equipped enough to advise the government on right policies.

“The Council will advise the government on the kind of policies to roll out, most of this things we have them and they’ve already been discussed over and over again and I think with the choice of people in the committee, they are good enough to advise government to know how to implement policies.

“The private sector will support the government to invest heavily and create jobs.

“Government does not create jobs but they give us the right policies, you can see the interventions in gas sector getting the OB3 to work will give the country additional $2 billion.

“What I keep saying is that our own issues are not that bad, this economy can be turned around within few months and I think we are on that way.”

Other membership of the PECC are Vice President Kashim Shettima, Vice-Chairman; President of the Nigerian Senate; Chairman, Nigeria Governors’ Forum; Coordinating Minister for the Economy and Minister of Finance; Governor of the Central Bank of Nigeria; Ministers of Agriculture and Food Security; Aviation and Aerospace Development and Budget and Economic Planning.

Others include Ministers of Communications, Innovation and Digital Economy; Industry, Trade and Investment; Labour and Employment; Marine and Blue Economy; Power; State, Petroleum Resources; State, Gas; Ministers of Transportation and Works.

The PECC, which also comprise 13 key members of the organized private sector, joining for a period not exceeding one year, subject to the President’s directive include Alhaji Aliko Dangote, Mr. Tony Elumelu, Alhaji Abdulsamad Rabiu, Ms. Amina Maina, Mr. Begun Ajayi-Kadir, Mrs. Funke Okpeke and Dr. Doyin Salami.

Other PECC members from the private sector are Mr. Patrick Okigbo, Mr. Kola Adesina, Mr. Segun Agbaje, Mr. Chidi Ajaere, Mr. Abdulkadir Aliu andMr. Rasheed Sarumi.