REVEALED; How Federal Govt is spending fund saved from subsidy removal

Funds saved from the stoppage of subsidy payments are being used to execute high-impact projects and schemes by the Tinubu Administration, Information and National Orientation Minister Mohammed Idris has said.

The projects and schemes, according to Idris, are student loans, physical and digital infrastructure, low-cost consumer credit, agricultural production, and ’targetted’ social investments.

He spoke at the 2024 Annual Conference of the International Press Institute with the theme: ‘’Democracy, Media Freedom and the Imperative of Protecting the Nigerian Civic Space” in Abuja.

Idris also shed light on the proposed tax reforms, media freedom and protection of Nigeria’s civic space, energy transition, and the judiciary being championed by President Bola Ahmed Tinubu under his administration’s Renewed Hope Agenda.

He said: “Following the removal of petrol subsidy, President Tinubu is gradually guiding Nigeria into an unprecedented energy transition phase, launching a presidential initiative to move the country from fossil fuels to Compressed Natural Gas (CNG) as fuel for vehicles and machinery.

‘’The ongoing rollout of CNG and associated infrastructure is reducing transportation costs for Nigerians by up to 60 percent, creating jobs, and attracting tens of millions of dollars in local and foreign investment.

‘’The young people of Nigeria now have a clearer path to sustainable tertiary education through the Student Loan (Access to Higher Education) Act 2024, which has established the Nigerian Education Loan Fund (NELFUND).

Complementing this is the Consumer Credit Corporation, established to guarantee access to low-cost and flexible consumer credit.

‘’In multiple ways, the President is focused on putting more money in the pockets of Nigerians and creating avenues for sustainable prosperity.’

The minister insisted that Nigeria was on the verge of fundamental economic reform, anchored on the Renewed Hope Agenda.

He described that agenda as a deliberate and comprehensive recalibration of a long-neglected system geared towards economic diversification, human capital development, infrastructure, innovation, competitiveness, and inclusive growth.

Idris explained that the tax reform initiative was envisioned to simplify Nigeria’s existing tax regimes and make compliance easier, while also reducing tax burden on the most vulnerable Nigerians.

Attorney General and Minister of Justice Lateef Fagbemi is heading a Federal Government team raised by the President to meet with Federal lawmakers to address all knotty areas.

Idris told the conference participants that “a recurring highlight of the reforms is the introduction of several new tax exemptions that will benefit various categories of individuals and businesses.”

He added that reforms would complement broader macroeconomic reforms aimed at driving Nigeria’s economic transformation. These measures, according to him, are foundational elements for building a prosperous and globally competitive Nigeria.

Idris described President Tinubu as a firm believer in media freedom and the protection of Nigeria’s civic space.

Idris also said despite occasional challenges, the press remains largely free in the country, especially under the present administration.

He said: “Now, I am not saying that there have not been challenges and threats here and there, but on the whole, Nigeria has enjoyed an openness and freedom that has seen the welcome proliferation of press organisations across print, broadcast, and digital media.

“Since President Bola Ahmed Tinubu assumed office in May 2023, and since I assumed office as Minister of Information and National Orientation in August of that year, we have asserted and reiterated our commitment to ensuring and expanding the freedom of the Nigerian press.

‘’Every time there has appeared to be a threat to this freedom, I have personally taken it upon myself to ensure that due process prevails and that the fundamental rights of the press are respected.

“The President is a firm believer in media freedom and the protection of Nigeria’s civic space. Not only has he been a media entrepreneur himself, but he has also earned himself a place in history as one of the champions of the pro-democracy movement that saw the permanent end to military rule in Nigeria.”

The minister said Tinubu placed a high premium on reforming and strengthening the judiciary to guarantee fundamental rights that define the proper functioning of the civic space.

Idris, however, emphasised that the civic space was not solely about freedoms but also about responsibilities, including showing respect and accommodation to all stakeholders.

“It is about understanding that for every right there is a corresponding responsibility, and that freedom does not come unbridled. It is knowing that media freedom involves knowing and acknowledging the immense power that the press wields, as shapers and molders of public opinion and the permanent public record, and not abusing this power,” he said.

The minister called on the media to create room for healthy debate and not to demonise those with contrary opinions or views.

He added: “ There is ample room for holding institutions to account, whether public or private. And yes, those elected and appointed to public office must always understand that they keep these offices in trust for the people, and owe it to these owners to be accountable at all times.

‘’These truths can and must all coexist, if we want to forge a stronger democracy, as the foundation for the strong and prosperous Nigeria of our dreams.”

On Student Loan, the Federal Government has okayed a fresh N110 billion for payment of tuition of 120,000 students of public tertiary institutions that applied for loans through NELFUND.

The government introduced the consumer credit scheme to enable Nigerians to have access to funds to purchase locally-made goods on credit.

Five hundred thousand civil servants nationwide are targeted as the first set of beneficiaries of the scheme.