Fuel Subsidy Saga: Tinubu’s Unprecedented Stand Unveiled in Berlin!

Nigeria’s 16th President, Bola Ahmed Tinubu, recently defended his decision to eliminate the fuel subsidy, highlighting its historic impact during his speech at the 10th German-Nigerian Business Forum in Berlin, Germany. President Tinubu, attending the G20 Compact with Africa (CwA) Conference hosted by German Chancellor Olaf Scholz, emphasized his commitment to enacting reforms since his inauguration, citing the removal of the subsidy as a key step towards eradicating criminality-driven poverty in the country.

“Inaugurated for reforms, I initiated the change from day one,” President Tinubu asserted, addressing the historical significance of his actions. He humorously mentioned, “If not mentioned in the Guinness Book of Records, I’ll find a way to insert myself. My inaugural speech didn’t reveal my plans, but I eliminated the fuel subsidy—a conduit for fraud and irregularities.”

President Tinubu reiterated the subsidy’s immense burden on Nigerians from the onset of his administration. He revealed that within a short period following the subsidy’s removal, his government had saved over a trillion Naira—a significant amount that would have previously fueled inefficiency and benefited smugglers and fraudsters.

The President pledged to redirect these funds towards initiatives benefiting citizens directly, promising more affordable education and student loans to ensure no student abandons education due to financial constraints. He assured the public of his administration’s commitment to prioritize the collective welfare and intervene as necessary to address economic challenges.

Furthermore, President Tinubu unveiled plans for a nationwide rollout of CNG-fueled buses, part of a program to provide mass transit at affordable rates. He disclosed a planned investment of N100 billion to acquire 3000 units of these buses by March 2024, enabling transport companies to access credit under favorable terms.

In October 2023, President Tinubu fulfilled a promise by delivering the first CNG bus to the State House, symbolizing the administration’s commitment to mitigate the effects of the fuel subsidy removal. Additionally, there has been considerable interest from state governments in investing in these CNG buses, indicating a positive response to the initiative.

In an exclusive interview with Mr. Taiwo Adisa, General Editor of the Nigerian Tribune Newspapers, Chief Bayo Onanuga, Special Adviser to the President on Information and Strategy, reaffirmed President Tinubu’s commitment to fulfilling promises made to the Nigerian populace. Onanuga assured the nation of Tinubu’s dedication to delivering on the commitments made during his tenure as President.

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has inked a groundbreaking partnership with Sterling Bank, earmarking a whopping five billion naira in loans to bolster small businesses nationwide. These loans come at a remarkable single-digit interest rate of 9%, presenting one of the most attractive credit options available for Nigeria’s NSMEs.

The Memorandum of Understanding (MOU) was officially sealed on Wednesday, November 22, at the SMEDAN Corporate Headquarters in Idu, Abuja. Mr. Charles Odii, the Director-General of SMEDAN, and Mr. Abubakar Suleiman, the Managing Director/CEO of Sterling Bank, formalized this game-changing agreement.

To access this financial support, small businesses are required to register with SMEDAN and complete an online application. Subsequently, the bank will process these applications for loan disbursement. This opportunity is open nationwide to small businesses across diverse sectors, offering loan options ranging from ₦250,000 to ₦2,500,000.

This strategic initiative signifies a monumental stride in fulfilling Mr. Charles Odii’s commitment to fostering prosperity by bolstering small businesses’ growth through enhanced financial access. Acknowledging the pivotal role SMEs play in revitalizing the Nigerian economy, this move strongly aligns with President Bola Ahmed Tinubu’s Renewed Hope agenda, focusing on growth-oriented economic reforms and support.

In continuation of SMEDAN’s pledge, following an agreement with the Anambra State government, the Odii-led agency is set to provide a 1 billion naira loan portfolio for small businesses in the state. Plans to forge additional partnerships with state governments and private entities echo the agency’s mission to broaden financial access for small businesses. The ₦5 billion pact with Sterling Bank signifies a definitive step towards fulfilling this commitment.

During the signing event, DG Charles Odii highlighted this as “an important milestone in our efforts to stimulate economic growth and drive prosperity by enhancing SME access to finance. We believe that this financial support, at an exceptionally competitive rate, will aid SMEs in expanding operations, hiring additional employees, and contributing to an overall upswing in beneficial trade and economic activities.”

The ₦5 billion loan agreement with Sterling Bank spans 24 months, with repayments commencing after a minimum three-month period, enabling small businesses to fully leverage this facility.

Sterling Bank’s MD, Mr. Abubakar Suleiman, emphasized the partnership’s aim to provide prompt financial access for small businesses, guiding them through a formalization process crucial for sustainability and access to funds. This includes pivotal strategies such as record-keeping, separating personal from business finances, and investing in competitive strategies for success.