The 31-member Council, chaired by the president, discussed the need for innovative solutions to the Nigeria's economic challenges
President Bola Tinubu’s government has embarks on a move to remove all entry barriers to investments in the Nigeria’s energy sector.
Tinubu called on new foreign and domestic investors to come in and secure investment opportunities in the Nigeria’s energy sector.
The president made this statement during the inauguration of he Presidential Economic Coordination Council (PECC) in Abuja, where he also launched the Economic Stabilization Programme to ensure food security, improved power supply, enhanced social welfare and healthcare, increased energy productions, and overall economic transformation.
Other issues discussed by the president and the Council members apart from ending entry barriers to investments in the Energy sector
The 31-member Council, chaired by the president, discussed the need for innovative solutions to the Nigeria’s economic challenges.
The council also deliberated on the importance of public-private collaborations in terms of decision making to achieve effective economic results in the country’s cross-sectoral performances.
“We must increase our oil production to two (2) million barrels per day within the next few months and we are determined to remove all entry barriers to investments in the energy sector while enhancing competitiveness,” Tinubu said.
”We are determined to do that with your cooperation, collaboration, and recommendations. As a nation, it is so shameful that we are still generating 4.5GW of electricity.
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”We have the challenge of energy security in Nigeria. We need to work together to improve our oil and gas sector, and we must also increase electricity generation and distribution throughout the country.”
The president enlightened that he has designed measures, which are in alignment with the National Construction and Household Support Programme, to stabilize the economy, and address the issues of unemployment, including insecurity.
According to a document from the State House, which was released by the Personal adviser to the president on media and publicity, Ajuri Ngelale, the Economic Stabilization Programme will address:
1. Energy Security
This Initiative, which includes power, oil and gas, aims to ncrease on-grid electricity to be delivered to homes and businesses from about 4.5 gigawatts to 6 gigawatts in six months.
Increase oil production to 2 million barrels per day within the next 12 months; and remove barriers to entry for investments into the energy sector and allow competitiveness
2. Agriculture and Food Security
The aim is to increase staple crops grown by small-holder farmers from 127 million MT in 2023 to 135 million MT this year; bolster production by partnering larger-scale commercial farmers; and Support qualified farmers with satellite imagery for land use planning, crop rotation, and monitoring of agricultural expansion.
3. Health and Social Welfare
This sector, with the federal government’s support , shall make essential medicines available at lower cost for 80-90 million Nigerians; expand healthcare insurance coverage for 1 million vulnerable people via a Vulnerable Group Fund in collaboration with state governments; redeploy 20,000 healthcare workers to provide services to 10-12 million patients in areas where they are most urgently needed; and power up 4,800 primary healthcare centres (PHCs), second tier, and third tier hospitals using renewable energy sources.
4. Fiscal Measures
Support for new and existing youth-owned enterprises across all 36 states of the Federation, creating 7,400 MSMEs within the next 6-12 months; MSME support: A six hundred and fifty billion naira (N650 billion) facility will provide lower-cost short-term facilities to youth-owned businesses, manufacturers and MSMEs across various industries; food processing, pharmaceutical, agriculture, and wholesale and retail trade. This financing will be based on their current and future receivables, company rating, and market demand for products; a Manufacturing Stabilization Fund will rejuvenate up to two hundred and fifty companies and deliver lower cost (9.0%-11.0%) long-term facilities to large, medium-scale, and light manufacturers that produce finished goods for domestic and export markets.
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Additionally, this includes a Sub-national Matching Fund: A Grow Nigeria Development Fund consisting of a single-digit interest rate loan portfolio with the Bank of Industry and a matching fund agreement with sub-national governments to grow MSMEs.
Expanding the Bank of Industry’s Rural Development Programme: A fund to support rural economies in developing 300 new MSMEs for each state, including the Federal Capital Territory (Abuja), resulting in 11,100 new rural-based MSMEs across the Federation.
Mortgage Finance Acceleration Facility: A facility that delivers affordable housing for all segments impacted by the cost-of-living challenge. This will support the construction of an additional 25,000 housing units.
These fiscal measures will improve access to finance for MSMEs and, in the process, create 4.7 million direct and indirect jobs over a six to 12-month period.
Meanwhile , speaking at the Council Chambers in Abuja, the Vice-President Kashim Shettima, who is the Vice-Chairman of the Council, said President Tinubu is committed to providing solutions to the Nigeria’s economic challenges.
”I want to emphasize that when there is a will, there is always a way, and the President does not believe in apportioning blame. He believes in preparing solutions,” Shettima said.
The Coordinating Minister of the Economy and Minister of Finance, Mr Wale Edun presented a proposed economic plan, titled “Accelerated Stabilization and Advancement Plan”, which had been earlier submitted to President Tinubu.
Economic issues to be resolved in 2024, as contained in the document, by the sub-committees involve a focus on the key sectors of agriculture and food security, energy (oil, gas, power), health and social welfare, and business support.
Top members of the Council after president Tinubu and his vice, include the Senate President, the Speaker of the House of Representatives, Chairman of the Nigeria Governors Forum, twelve ministers, and the Governor of the Central Bank of Nigeria.
The Organized Private sector representatives in the council, include Alhaji Aliko Dangote, Mr. Tony Elumelu, and Alhaji Abdul Samad Rabiu; Ms Amina Maina, Mr Segun Ajayi-Kadir, and Dr. Funke Opeke; Dr. Doyin Salami, Mr Patrick Okigbo, and Mr Kola Adesina; Mr Segun Agbaje, Mr Chidi Ajaere, Mr. Abdulkadir Aliu, and Mr Rasheed Sarumi.
