FG Reveals Allocation of Funds Recovered From Subsidy Removal

The Federal Government has disclosed how funds recovered from fuel subsidy removal are being utilized, emphasizing investments in infrastructure, social programs, and economic reforms.

Mohammed Idris, the Minister of Information and National Orientation, announced that the Tinubu administration is directing funds saved from eliminating fuel subsidies into transformative projects and initiatives.

At the 2024 Annual Conference of the International Press Institute in Abuja, Idris emphasized that the government is dedicated to using these funds for initiatives such as student loans, developing physical and digital infrastructure, providing low-cost consumer credit, boosting agricultural production, and making targeted social investments.

Titled “Democracy, Media Freedom, and the Imperative of Protecting the Nigerian Civic Space,” the event also provided a venue for the minister to address topics related to the administration’s Renewed Hope Agenda. He detailed proposed changes in tax policy, strategies for energy transition, reforms within the judiciary system, and initiatives aimed at preserving media freedom and safeguarding civic engagement.

Idris stressed that these initiatives aim to boost economic growth, enhance the quality of life for citizens, and secure a sustainable future for Nigeria, in line with President Bola Tinubu’s vision for revitalizing and prospering the nation.

He stated that after the elimination of the petrol subsidy, President Tinubu is steadily leading Nigeria into a remarkable energy transition. He has initiated a presidential program to shift the country from relying on fossil fuels to using Compressed Natural Gas (CNG) as fuel for vehicles and machinery.

The continued implementation of CNG and its related infrastructure is decreasing transportation expenses for Nigerians by up to 60 percent, generating employment opportunities, and drawing in tens of millions of dollars in both local and international investments.

The Student Loan (Access to Higher Education) Act 2024 has paved a clearer path for young Nigerians towards sustainable tertiary education by establishing the Nigerian Education Loan Fund (NELFUND).

Complementing this effort is the Consumer Credit Corporation, which was established to ensure access to affordable and adaptable consumer credit.

The President is committed to increasing the financial well-being of Nigerians and establishing pathways for long-term prosperity.

The minister emphasized that Nigeria was on the brink of significant economic reform, centered around the Renewed Hope Agenda.

He characterized the agenda as an intentional and thorough revamping of a long-overlooked system aimed at economic diversification, human capital development, infrastructure enhancement, innovation stimulation, competitiveness boosting, and fostering inclusive growth.

Idris stated that the tax reform initiative aimed to streamline Nigeria’s current tax systems and facilitate easier compliance, while simultaneously alleviating the tax burden on the country’s most vulnerable citizens.

Attorney General and Minister of Justice Lateef Fagbemi is leading a Federal Government team appointed by the President to consult with Federal lawmakers in order to resolve all challenging issues.

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Idris informed the conference attendees that a notable aspect of the reforms is the introduction of several new tax exemptions designed to benefit various groups, both individuals and businesses.

He mentioned that these reforms would enhance the wider macroeconomic changes intended to propel Nigeria’s economic transformation. In his view, these steps are essential building blocks for establishing a prosperous and globally competitive Nigeria.

Idris portrayed President Tinubu as a strong advocate for media freedom and the safeguarding of Nigeria’s civic space.

Idris also mentioned that, despite some occasional challenges, the press is largely free in the country, particularly under the current administration.

He stated, “Although there have been some challenges and threats along the way, overall, Nigeria has experienced an openness and freedom that has led to a positive growth of press organizations in print, broadcast, and digital media.”

Since President Bola Ahmed Tinubu took office in May 2023, and following my appointment as Minister of Information and National Orientation in August that same year, we have consistently emphasized our dedication to upholding and broadening the freedom of the Nigerian press.

Whenever there seems to be a threat to this freedom, I have personally made it my responsibility to ensure that due process is followed and the fundamental rights of the press are upheld.

The President strongly supports media freedom and the safeguarding of Nigeria’s civic space. As a former media entrepreneur, he has also secured his place in history as a key advocate for the pro-democracy movement that led to the permanent end of military rule in Nigeria.

The minister stated that Tinubu highly prioritized reforming and strengthening the judiciary to ensure fundamental rights, which are essential for the proper functioning of civic space.

Idris, however, stressed that the civic space encompasses not only freedoms but also responsibilities, such as demonstrating respect and consideration for all stakeholders.

He stated, “It’s about recognizing that every right comes with a corresponding responsibility and understanding that freedom is not unlimited. Media freedom means being aware of the significant influence the press holds in shaping public opinion and maintaining an enduring public record, while ensuring this power isn’t misused.”

The minister urged the media to foster an environment for healthy debate and to avoid vilifying individuals with differing opinions or viewpoints.

He stated, “There is plenty of opportunity to hold institutions accountable, both public and private. Moreover, individuals elected or appointed to public office must always remember that they serve in these positions on behalf of the people and are obligated to remain answerable at all times.”

“These truths can and must coexist if we wish to build a stronger democracy, forming the foundation for a vibrant and prosperous Nigeria that we envision.”

The Federal Government has approved a new allocation of N110 billion for student loans to cover the tuition fees of 120,000 students from public tertiary institutions who applied through NELFUND.

The government launched the consumer credit program to provide Nigerians with access to funds for purchasing locally-made goods on credit.

The scheme aims to initially benefit 500,000 civil servants across the country.