…Says Nigeria’s 4.5 gigawatts electricity capacity shameful
…Says nation’s hope hangs on private sector
….Nigeria can achieve 2m pbd – Elumelu
…Private sector’ll invest heavily, create jobs – Dangote
By Abdullahi M. Gulloma
Abuja
President Bola Ahmed Tinubu Thursday inaugurated the Presidential Economic Coordination Council (PECC) and launched the Economic Stabilization Programme to ensure food security, improve power supply, enhance social welfare and healthcare, and increase energy production and overall economic transformation.
Speaking at the inaugural meeting of the 31-member Council held at the Council Chambers in Abuja, the president, who chairs the council, underscored the need for innovative solutions to the country’s economic challenges.
The president stressed importance of public-private partnerships in driving economic reforms.
”We have the challenge of energy security in Nigeria. We need to work together to improve our oil and gas sector, and we must also increase electricity generation and distribution throughout the country. We are determined to do that with your cooperation, collaboration, and recommendations.
“As a nation, it is so shameful that we are still generating 4.5GW of electricity. We must increase our oil production to two million barrels per day within the next few months and we are determined to remove all entry barriers to investments in the energy sector while enhancing competitiveness,” he said.
The president announced measures, which would run concurrently with the National Construction and Household Support Programme, to stabilise the economy, enhance job creation, and foster economic security.
He said the measures under the Economic Stabilization Programme include energy security covering power, oil and gas. The measure targets an increase on-grid electricity to be delivered to homes and businesses from about 4.5 gigawatts to 6 gigawatts in six months; increase oil production to two million barrels per day within the next 12 months; and remove barriers to entry for investments into the sector to enhance competitiveness.
The president said the agriculture and food security targets an increase in staple crops grown by small-holder farmers from 127 million MT in 2023 to 135 million MT this year; bolstering production by partnering larger-scale commercial farmers; and supporting qualified farmers with satellite imagery for land use planning, crop rotation and monitoring of agricultural expansion.
In the health and social welfare sector, the president said the federal government would make essential medicines available at lower cost for 80-90 million Nigerians; expand healthcare insurance coverage for one million vulnerable people via a Vulnerable Group Fund in collaboration with state governments; redeploy 20,000 healthcare workers to provide services to 10-12 million patients in areas where they are most urgently needed; and power up 4,800 primary healthcare centres (PHCs), second tier and third tier hospitals using renewable energy sources.
He said some of the interventions to improve access to finance for the housing sector, MSMEs and the manufacturing sector include youth-owned enterprises encompassing a support for new and existing youth-owned enterprises across all 36 states of the Federation, creating 7,400 MSMEs within the next 6-12 months; and MSME support.
He said under the MSME support, a N650 billion facility would provide lower-cost short-term facilities to youth-owned businesses, manufacturers and MSMEs across various industries; food processing, pharmaceutical, agriculture, and wholesale and retail trade.
He said this financing would be based on their current and future receivables, company rating and market demand for products;
The president said government’s Manufacturing Stabilization Fund would rejuvenate up to 250 companies and deliver lower cost (9.0%-11.0%) long-term facilities to large, medium-scale and light manufacturers that produce finished goods for domestic and export markets.
He said said under Sub-national Matching Fund, there is a Grow Nigeria Development Fund consisting of a single-digit interest rate loan portfolio with the Bank of Industry and a matching fund agreement with sub-national governments to grow MSMEs.
He said one of the interventions to improve access to finance is the expansion of the Bank of Industry’s Rural Development Programme to provide a fund to support rural economies in developing 300 new MSMEs for each state, including the Federal Capital Territory (Abuja), resulting in 11,100 new rural-based MSMEs across the Federation.
He said the Mortgage Finance Acceleration Facility would deliver affordable housing for all segments impacted by the cost-of-living challenge, stressing that the facility would support the construction of an additional 25,000 housing units.
The president said the fiscal measures would improve access to finance for MSMEs and, in the process, create 4.7 million direct and indirect jobs over a six to 12-month period.
Emphasizing the significance of the task ahead, Vice President Kashim Shettima, who is the Vice-Chairman of the council, said the President Tinubu is committed to proffering solutions to the nation’s economic challenges and not apportioning blame.
”I want to emphasize that when there is a will, there is always a way, and the President does not believe in apportioning blame. He believes in preparing solutions,” he said.
The Coordinating Minister of the Economy and Minister of Finance, Mr Wale Edun made a presentation on the highlights of the Accelerated Stabilization and Advancement Plan earlier submitted to the president.
He said the N2 trillion plan involves N350 billion funding for health and social welfare, N500 billion funding for agriculture and food security, N500 billion for the energy and power sector and N650 billion for general business support.
Also speaking, the chairman of Heirs Holdings, Transcorp and United Bank for Africa Mr Tony Elumelu said the president’s two million barrel of crude oil production per day target was achievable.
He said the president’s targets were about creating prosperity for Nigerians and creating economic hope.
“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,” he said.
Also speaking, the president Dangote Group, Alhaji Aliko Dangote pledged the support of the private sector in investing in job creation for Nigerians.
He stressed the need for 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,” he said.
Other members of the council include the Senate President, the Speaker of the House of Representatives, the chairman of Nigeria Governors Forum, twelve ministers, and the Governor of the Central Bank of Nigeria (CBN).
Members of the council from the organised private sector include Alhaji Aliko Dangote, Mr. Tony Elumelu, Alhaji Abdul Samad Rabiu, Ms. 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.