FG Details How Subsidy Savings Are Being Used For Development Projects

FG Details How Subsidy Savings Are Being Used For Development ProjectsThe Federal Government has disclosed how funds saved from the removal of fuel subsidies are being directed into impactful projects and initiatives under President Bola Tinubu’s Renewed Hope Agenda. The Minister of Information and National Orientation, Mohammed Idris, made the announcement during the 2024 Annual Conference of the International Press Institute in Abuja.....KINDLY READ THE FULL STORY HERE▶

Idris outlined that these funds are being invested in a wide range of initiatives, including student loans, infrastructure development (both physical and digital), consumer credit schemes, agricultural production, and targeted social investments. These measures are designed to reduce financial pressure on citizens and foster sustainable economic growth.

Energy Transition and Job Creation

One of the administration’s flagship projects is Nigeria’s transition from fossil fuels to Compressed Natural Gas (CNG) for vehicles and machinery. Idris explained that this transition aims to lower transportation costs by up to 60%, create jobs, and attract both local and foreign investments.

“Following the removal of the petrol subsidy, President Tinubu is spearheading an unprecedented energy transition, with a presidential initiative to switch Nigeria’s vehicles and machinery to CNG,” Idris stated. “The ongoing rollout of CNG infrastructure is reducing transportation costs, creating jobs, and attracting substantial investments.”

Education Reform and Access to Student Loans

The administration has also introduced the Student Loan (Access to Higher Education) Act of 2024, establishing the Nigerian Education Loan Fund (NELFUND). This initiative aims to provide Nigerian students with affordable pathways to higher education. The Federal Government has allocated N110 billion to cover tuition fees for 120,000 students attending public tertiary institutions, focusing on making education accessible to underprivileged students.

“The Student Loan Act has given Nigerian youth a clearer path to sustainable tertiary education, supporting them with accessible loan options,” Idris said.

Consumer Credit and Economic Empowerment

In addition, the government has launched a consumer credit scheme to enable Nigerians to purchase locally made products on credit. Initially, 500,000 civil servants will be the first to benefit. Furthermore, a new Consumer Credit Corporation has been established to provide low-cost, flexible consumer loans, allowing more Nigerians to access essential goods and services.

“The President’s agenda is focused on putting more money in Nigerians’ pockets and creating pathways for sustainable prosperity,” Idris remarked.

Economic Reform and Tax Restructuring

Idris highlighted that the subsidy removal is part of a broader economic reform plan aimed at addressing long-standing inefficiencies. The Renewed Hope Agenda seeks to diversify Nigeria’s economy, promote human capital development, and enhance national competitiveness.

The Tinubu administration is also pursuing major tax reforms to simplify the country’s tax system, making it easier for citizens and businesses to comply. The reforms will reduce the tax burden on vulnerable groups and introduce new tax exemptions.

To address these changes, President Tinubu has appointed Attorney General and Minister of Justice, Lateef Fagbemi, to lead discussions with lawmakers to refine the tax system, ensuring it is fairer and more transparent. Idris noted, “The introduction of new tax exemptions will benefit various categories of individuals and businesses.”

Media Freedom and Civic Space Protection

On media freedom, Idris reaffirmed the administration’s commitment to press freedom and protecting Nigeria’s civic space. While acknowledging challenges, he emphasized that Nigeria’s press remains largely free.

“Since President Tinubu assumed office in May 2023, we’ve asserted our commitment to press freedom and expanded civic space,” Idris said. “The President is a firm believer in media freedom and the protection of civic space, having played a key role in Nigeria’s pro-democracy movement.”

Idris also reminded the press of the responsibility that comes with freedom. “For every right, there is a corresponding responsibility,” he said. “Media freedom means acknowledging the immense power of the press and exercising it responsibly.”

Judicial Reforms and Accountability

Finally, Idris revealed that President Tinubu is prioritizing judicial reforms to safeguard citizens’ rights and ensure fairness in the legal system. These reforms aim to guarantee due process and ensure that justice is accessible to all Nigerians. He called on the media to encourage healthy debates and hold officials accountable while respecting democratic principles.

“There is ample room for holding institutions to account, but this process must be done with respect for democratic values,” Idris concluded. “Elected and appointed officials must remain accountable to the people they serve, as they hold their offices in trust for the nation.”

The reforms and projects being funded by subsidy savings are part of the Tinubu administration’s broader efforts to promote economic development, social equity, and democratic governance in Nigeria.

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