Already, the policies are taking tolls on companies with the likes of Airtel and MTN having their forex reserves depreciating.

The President who pleaded with the citizens to understand the reasons for the policy measures his government have taken to combat the serious economic challenges the nation has long faced, said that for several years, he consistently maintained the position that the fuel subsidy had to go.

“This once beneficial measure had outlived its usefulness. The subsidy cost us trillions of Naira yearly. Such a vast sum of money would have been better spent on public transportation, healthcare, schools, housing and even national security. Instead, it was being funnelled into the deep pockets and lavish bank accounts of a select group of individuals….

“Also, the multiple exchange rate system that had been established became nothing but a highway of currency speculation. It diverted money that should have been used to create jobs, build factories and businesses for millions of people. Our national wealth was doled on favourable terms to a handful of people who have been made filthy rich simply by moving money from one hand to another. This too was extremely unfair.

“It also compounded the threat that the illicit and mass accumulation of money posed to the future of our democratic system and its economy.

The Tinubu acknowledged that the economy is going through a tough patch and the citizens are being hurt by it. “The cost of fuel has gone up. Food and other prices have followed it. Households and businesses struggle. Things seem anxious and uncertain. I understand the hardship you face. I wish there were other ways. But there is not. If there were, I would have taken that route as I came here to help not hurt the people and nation that I love”.

He rolled out plans to cushion the effects:

Manufacturing sector to receive NGN75 billion

To strengthen the manufacturing sector, increase its capacity to expand and create good paying jobs, the President said his administration is “going to spend NGN75 billion between July 2023 and March 2024.

Our objective is to fund 75 enterprises with great potential to kick-start a sustainable economic growth, accelerate structural transformation and improve productivity”.

Each of the 75 manufacturing enterprises, he said, will be able to access NGN1billion credit at 9% per annum with maximum of 60 months repayment for long term loans and 12 months for working capital.

MSMEs to receive NGN125 billion

“Our administration recognises the importance of micro, small and medium-sized enterprises and the informal sector as drivers of growth. We are going to energise this very important sector with N125 billion.

Out of the sum, the Federal Government will spend N50 billion on Conditional Grant to 1 million nano businesses between now and March 2024.

“Our target is to give NGN50,000 each to 1,300 nano business owners in each of the 774 local governments across the country”, Tinubu said.

“Ultimately, this programme will further drive financial inclusion by onboarding beneficiaries into the formal banking system. In like manner, we will fund 100,000 MSMEs and start-ups with N75 billion. Under this scheme, each enterprise promoter will be able to get between NGN500,000 to NGN1million at 9% interest per annum and a repayment period of 36 months.

Release of 200,000 Metric Tonnes of grains

“To further ensure that prices of food items remain affordable, we have had a multi-stakeholder engagement with various farmers’ associations and operators within the agricultural value chain.

“In the short and immediate terms, we will ensure staple foods are available and affordable. To this end, I have ordered release of 200,000 Metric Tonnes of grains from strategic reserves to households across the 36 states and FCT to moderate prices. We are also providing 225,000 metric tonnes of fertilizer, seedlings and other inputs to farmers who are committed to our food security agenda.

Agricultural investments worth NGN 200 billion

“Our plan to support cultivation of 500,000 hectares of farmland and all-year-round farming practice remains on course. To be specific, N200 billion out of the NGN500 billion approved by the National Assembly will be disbursed as follows:

• Our administration will invest NGN50 billion each to cultivate 150,000 hectares of rice and maize.
• NGN50 billion each will also be earmarked to cultivate 100,000 hectares of wheat and cassava.

This expansive agricultural programme will be implemented targeting small-holder farmers and leveraging large-scale private sector players in the agric-business with strong performance record.

In this regard, he said that the expertise of Development Finance Institutions, commercial banks and microfinance banks will be tapped into to develop a viable and an appropriate transaction structure for all stakeholders.

Tinubu’s Transportation Investment plan – NGN 100 billion

“Part of our programme is to roll out buses across the states and local governments for mass transit at a much more affordable rate. We have made provision to invest NGN100 billion between now and March 2024 to acquire 3000 units of 20-seater CNG-fuelled buses.

“These buses will be shared to major transportation companies in the states, using the intensity of travel per capital. Participating transport companies will be able to access credit under this facility at 9% per annum with 60 months repayment period.

New minimum wage is coming

“In the same vein, we are also working in collaboration with the Labour unions to introduce a new national minimum wage for workers. I want to tell our workers this: your salary review is coming”.

He said that once they agree on the new minimum wage and general upward review, the government will make budget provision for it for immediate implementation.

He applauded many private employers in the Organised Private Sector who have already implemented general salary review for employees.

The Special Agro-industrial Processing Zones are brand-new economic zones in rural areas that will be completely supported by infrastructure (power, water, roads, digital infrastructure, and logistics), allowing food and agribusiness companies to locate within such zones, according to African Development Bank President Dr. Akinwumi Adesina.

They will be situated near farmers in catchment areas for agricultural output, which will give farmers access to markets, support processing and value addition, lower food losses, and support the establishment of fiercely competitive food and agricultural value chains.

The launch ceremony in the capital Abuja kick-starts the implementation of phase one of the SAPZ program in eight states across the country.

The African Development Bank is providing funding of $210 million, with the Islamic Development Bank and the International Fund for Agricultural Development (IFAD) jointly providing $310 million. The Nigerian government is contributing $18.05 million.

President Muhammadu Buhari of Nigeria praised the initiative and stated, “If the Special Agro-industrial Processing Zones program delivers on its objectives, and we have no doubt that it will, then we would in less than a decade have dealt a fatal blow to food insecurity, created millions of good paying agro-industrial jobs and opportunities, and radically improved export earnings from agriculture.” Vice President Professor Yemi Osinbajo also praised the program.

Adesina, a former minister of agriculture of Nigeria and a World Food Prize Winner, said: “Hunger in Nigeria cannot be justified. Nigeria has the land, with 34 million hectares of arable land with rich and diverse agroecology. It has water. It has the labor. It has great sunshine. Nigeria must achieve zero hunger. There is no reason for anyone to go hungry in Nigeria.”

To help Africa prevent a food crisis from the Russia-Ukraine war, the African Development Bank launched a $1.5 billion African Emergency Food Production Facility to support 20 million farmers to access climate-resilient agricultural technologies and produce 38 million metric tons of food valued at $12 billion.

“The African Emergency Food Production Facility provided $134 million to Nigeria, one of the highest levels of support across African countries. I would like to thank the Japanese International Development Agency (JICA) for co-financing this with an additional $110 million. That means we collectively made available $244 million for emergency food production in Nigeria,” the bank group head said.

Noting that the latest Global Hunger Index (2022) ranks Nigeria 103rd among 121 countries facing hunger crisis in the world, Adesina called for “greater action, responsiveness, and delivery to avert a food crisis in Nigeria”.

Nigeria has the land, with 34 million hectares of arable land with rich and diverse agroecology

“Nigeria must decisively tackle insecurity challenges that prevent farmers from going to the farms. Food security needs national security,” said Adesina.

According to the President of the Islamic Development Bank, Dr. Muhammad Al Jasser, “with the disruption of supplies arising from the war, Africa now faces a shortage of at least 30 million metric tons of food imports from Russia and Ukraine, especially for wheat, maize, and soybeans. Urgent actions are needed to prevent a food crisis in Africa.”

He expressed confidence Nigeria will efficiently implement the SAPZ program which will boost food production, reduce food price inflation, and transform the agriculture sector while assuring food security and creating jobs.

The Associate Vice President of the International Fund for Agricultural Development Ms. Katherine Meighan, said her organization is determined to contribute to the overall goal of the SAPZ program by empowering 100,000 direct beneficiaries including smallholders, small processors, traders, and service providers in Ogun and Kano State, with a strong focus on youth and women.

“Our empowerment strategy aims to equip farmers and smallholders to take advantage of the markets created by the SAPZ to sustainably enhance their income through income-generating activities, household food security and nutrition, and resilience to climate change,” said Meighan.

In a statement obtained by TechEconomy, Mohammad Abubakar, Minister of Agriculture and Rural Development said the government is committed to increasing production from the present 340,000 tonnes to 500,000 tonnes through Living Income Differential (LID) policy.

LID policy is an export system that applies a premium of $400 per ton on the export price of cocoa aside from the floor price or direct amount being paid for cocoa tons by the chocolate makers or international cocoa buyers in Cote D’Ivoire and Ghana, respectively.

According to the National Bureau of Statistics, the agricultural sector in the first quarter of 2022 grew by 3.16% (year-on-year) in real terms, an increase of 0.88% points from the corresponding period of 2021, and a decrease of 0.42% points from the preceding quarter, which recorded a growth rate of 3.58%

Nigeria is the 4th largest producer of cocoa globally, and is committed to partnerships in its cocoa development.

Cocoa is among Nigeria’s leading agricultural exports and constitutes 2% of its exports annually. It is the country‘s third-largest export after crude petroleum, and liquefied natural gas, thus a sustained price increase will immensely help local industries.

The Minister said that Nigeria was ranked number four among cocoa-producing countries in the world, assuring of the “commitment of the Federal Government to increase Nigeria’s cocoa production from the present 340,000 tonnes to 500,000 tonnes by 2024.

“Recently, Nigeria has made a remarkable move to join the Living Income Differential (LID) initiatives which were established by Cote d’Ivoire and Ghana in 2019 which aims at guaranteeing the livelihood of smallholder farmers through LID of $400/ton of cocoa beans sold.

”The two countries are benefiting while Nigerian cocoa farmers are at a disadvantage of this benefit due to unregulated and liberalized cocoa industry in the country,” Abubakar said.

He also stated that the Nigerian and Ghana cocoa boards had yielded positive results in talks with the recent approval by the ministry to establish the National Cocoa Management Committee (NCMC).

“The committee will consist of all relevant stakeholders in the Nigerian cocoa industry,  develop a framework for the regulation and monitoring of all activities in the cocoa sector in order to achieve transparency, traceability, and sustainability,” he said.