Federal Government Disburses N570bn for State Livelihood Support
Introduction
The Federal Government has released N570bn to the 36 states to expand livelihood support for their citizens, President Bola Tinubu announced on Sunday. He also disclosed that Nigeria spends N2tn monthly to import Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel).
Key Announcements
- Livelihood Support Funds: N570bn allocated to states to aid citizens.
- Nano-Business Grants: 600,000 nano-businesses have received grants, with 400,000 more expected to benefit.
- Revenue Growth: The first half of 2024 saw N9.1tn in total fiscal revenue, a significant increase from the previous administration.
Oil and Gas Resource Utilization
- Despite Nigeria’s abundant oil and gas resources, there was a reliance solely on oil-based petrol. The government subsidized fuel costs using foreign exchange.
- To address this, the administration invested in Compressed Natural Gas (CNG) to reduce dependency on imported fuels and free up resources for healthcare and education.
CNG Initiative
- The initiative aims to save N2tn monthly by reducing the need for PMS and AGO imports.
- Distribution of one million low-cost conversion kits for commercial vehicles, aiming to reduce transportation costs by 60% and curb inflation.
Refining and Importing Petroleum
- The Nigerian National Petroleum Company Limited remains the sole petrol importer, while licensed individuals import diesel.
- Nigeria, despite being Africa’s largest oil producer, depends on imported petroleum products due to low refining capacity.
Protests and Revenue Management
- Tinubu addressed nationwide protests, expressing readiness to listen and address concerns.
- The revenue increase is attributed to efforts in blocking leakages, introducing automation, and creatively mobilizing funds without additional burden on citizens.
Economic Strides and Debt Reduction
- Productivity in the non-oil sector is rising, capitalizing on current economic opportunities.
- Government revenues have doubled, reaching over N9.1tn in the first half of 2024, compared to 2023.
- Debt burden reduced, with debt service revenue declining from 97% in 2023 to 68% in 2024.
- Cleared foreign exchange obligations of about $5bn without affecting programs.
- The debt reduction has allowed for increased spending on essential social services like education and healthcare.
Conclusion
The Federal Government’s recent financial initiatives reflect a significant shift towards economic stability and support for citizens. By reducing dependency on imported fuels and increasing revenue, the administration aims to foster growth and improve living standards.
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