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Nigeria’s New Economic Council Targets Energy, Food Security Under Tinubu’s Leadership

As part of efforts to maximize oil production, ensure food security, and address other economic challenges, President Bola Tinubu has inaugurated the Presidential Economic Coordination Council (PECC) and launched the Economic Stabilisation Programme.

Speaking at the event, Tinubu highlighted the necessity for innovative solutions to Nigeria’s economic issues, emphasizing the role of public-private partnerships in driving economic reforms, according to a State House release on Thursday.

“We face significant energy security challenges in Nigeria. Collaborative efforts are essential to improve our oil and gas sector, as well as to enhance electricity generation and distribution nationwide.

“It is a national disgrace that we are still generating only 4.5GW of electricity. We must raise our oil production to 2 million barrels per day within the next few months and eliminate barriers to investments in the energy sector while boosting competitiveness,” Tinubu stated.

The statement outlined that Tinubu introduced measures that will run alongside the National Construction and Household Support Programme to stabilize the economy, create jobs, and enhance economic security.

“The Economic Stabilization Programme includes the following initiatives:

1. Energy Security: This initiative aims to:
– Increase on-grid electricity from 4.5 gigawatts to 6 gigawatts within six months.
– Raise oil production to 2 million barrels per day within the next 12 months.
– Remove investment barriers in the energy sector to enhance competitiveness.

2. Agriculture and Food Security: Goals include:

– Increase staple crop production by small-holder farmers from 127 million MT in 2023 to 135 million MT this year.

– Enhance production by partnering with larger-scale commercial farmers.

– Support farmers with satellite imagery for land use planning, crop rotation, and monitoring agricultural expansion.

3. Health and Social Welfare: The federal government will:
– Provide essential medicines at lower costs for 80-90 million Nigerians.

– Expand healthcare insurance for 1 million vulnerable individuals through a Vulnerable Group Fund in collaboration with state governments.

– Deploy 20,000 healthcare workers to serve 10-12 million patients in high-need areas.

– Power 4,800 primary healthcare centres and hospitals using renewable energy sources.

4. Fiscal Measures: These interventions will enhance access to finance for housing, MSMEs, and manufacturing sectors:

– Support 7,400 new and existing youth-owned enterprises across all 36 states within 6-12 months.

– A N650 billion facility for youth-owned businesses, manufacturers, and MSMEs, with financing based on receivables, company rating, and market demand.

– A Manufacturing Stabilization Fund to support 250 companies with low-cost long-term facilities for domestic and export production.

– A Grow Nigeria Development Fund with single-digit interest rate loans in partnership with the Bank of Industry and sub-national governments.

– Expand the Bank of Industry’s Rural Development Programme to develop 11,100 new rural-based MSMEs across the Federation.

– A Mortgage Finance Acceleration Facility to support the construction of 25,000 housing units.

These fiscal measures aim to improve access to finance for MSMEs and create 4.7 million direct and indirect jobs over the next 6-12 months.

Vice-President Kashim Shettima, Vice-Chairman of the Council, underscored President Tinubu’s commitment to finding solutions to Nigeria’s economic challenges, stating, “The President believes in preparing solutions rather than apportioning blame.”

The Coordinating Minister of the Economy and Minister of Finance, Mr. Wale Edun, presented the Accelerated Stabilization and Advancement Plan, outlining key economic issues to be addressed in 2024 by sub-committees focusing on agriculture and food security, energy, health and social welfare, and business support.

Council members include the Senate President, the Speaker of the House of Representatives, the Chairman of the Nigeria Governors Forum, twelve ministers, the Governor of the Central Bank of Nigeria, and prominent figures from the private sector such as Alhaji Aliko Dangote, Mr. Tony Elumelu, and Dr. Funke Opeke.

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