The Federal Government of Nigeria has announced a strategic social intervention programme to support the nation's poorest citizens, with a goal to reach 20 million individuals. This initiative, led by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, is part of a broader effort to address inflation, unemployment, and key economic challenges through the effective use of increased national revenue.
Edun stated that the government's revenue for the first half of 2024, amounting to over N9.1 trillion, is more than double the N4.06 trillion generated in the same period of 2023. The additional revenue is being channelled into social programmes designed to mitigate the impact of recent economic reforms, which have led to higher living costs. This includes a cash transfer programme aimed at supporting 60% of Nigeria's poorest citizens, impacting 20 million people through direct financial aid.
Speaking at the 30th Nigeria Economic Summit in Abuja, Edun outlined the government’s comprehensive economic reform agenda, which focuses on reducing inflation, stimulating job creation, and driving growth in key sectors such as agriculture, manufacturing, oil, and housing. The government has already reached four million households with direct cash transfers, and plans are underway to expand this to 15 million households.
President Bola Tinubu, during his Independence Day address on October 1, 2024, reaffirmed the government's commitment to using the increased revenue from improved oil production to fund essential reforms and provide relief to struggling Nigerians. Edun emphasised that technology played a significant role in enhancing revenue collection, particularly by improving compliance among government agencies and companies.
The government's focus on agriculture is designed to reduce inflation by increasing food production, making food more available and affordable for Nigerians. Additionally, in the oil sector, the government has attracted significant foreign investments, including a $10 million commitment from ExxonMobil, bolstering the country's foreign exchange reserves and enhancing its global economic standing.
Edun also highlighted efforts in the manufacturing sector, where Nigerian businesses have invested $4.2 billion, strengthening the country's industrial base. Other initiatives include a student loan scheme, consumer credit for workers, and loans for small and medium-sized enterprises (SMEs) to support job creation and economic growth.
Furthermore, the government has rolled out a N75 billion grant and loan scheme for one million SMEs in the agricultural sector. For larger companies, N75 billion is being disbursed in tranches of N1 billion per company at a reduced interest rate to help manage production costs amid foreign exchange fluctuations.
Edun concluded by stating that these initiatives are part of the government's broader strategy to reduce poverty and drive economic recovery, with the increased revenue projected to save Nigeria 5% of its Gross Domestic Product (GDP).
