Fed Govt Unveils ₦1 Trillion Palliative, Large-Scale Construction Projects

President Bola Ahmed Tinubu on Thursday instructed all state governors to provide concrete feedback within seven days on their plans to boost food production in their states. This directive was given during the 142nd National Economic Council (NEC) meeting held at the State House, Abuja, attended by state governors and some deputies.

Tinubu also announced the launch of a National Construction and Household Support Programme, which includes ₦50,000 grants for 100,000 families in each state for three months, ₦155bn for assorted foods, ₦540bn for household grants, and ₦10bn allocations for CNG buses for each of the 36 states and the Federal Capital Territory. These initiatives are estimated to cost over ₦1tn.

Emphasizing the urgency of boosting food production, the President urged state governors to work collaboratively to address citizens’ needs, pledging necessary support to alleviate hardship. He stated, “We must deliver on our targets at all levels. Please report back following your consultations and submit it to my office within seven days.”

Tinubu’s comments came amid multiple economic challenges, including high inflation driven by fuel subsidy removal and exchange rate depreciation, which reached 27 percent year-on-year in October 2023. These issues have exacerbated the cost-of-living crisis in Nigeria.

Despite significant policy reforms, challenges such as poverty, stagnant per-capita growth, and a weak business environment persist, further strained by global food price surges and geopolitical uncertainties.

At the NEC meeting, Tinubu outlined new plans to enhance agricultural productivity, strengthen the economy, and provide urgent economic relief. The National Construction and Household Support Programme will cover all geo-political zones in Nigeria, prioritizing infrastructure projects like the Sokoto-Badagry Highway and the Lagos-Calabar Coastal Highway.

Tinubu also approved full counterpart financing for the Port Harcourt-Maiduguri Railway and the Ibadan-Abuja segment of the Lagos-Kano Standard-Gauge Railway. According to a statement by the President’s Special Adviser on Media and Publicity, Ajuri Ngelale, the Sokoto-Badagry Highway is particularly important due to its strategic agricultural significance.

The programme will also allocate ₦10bn to each state and the FCT for CNG buses, provide ₦50,000 uplift grants to 100,000 families per state for three months, and deploy ₦155bn for the purchase and distribution of assorted foodstuffs.

President Tinubu attended the NEC meeting, which is often chaired by Vice President Kashim Shettima, for the first time. The council was expected to discuss a new minimum wage, but this was deferred for further consultations with stakeholders.

The Minister of Agriculture, Abubakar Kyari, announced a $1bn agriculture mechanization programme to set up 1000 agro-sector service providers with tractors. This plan includes a partnership with John Deere and Tata to provide 2000 tractors by the end of the year. Additionally, a €950m Greener Imperative Project and a potential deal with Belarus Tractors for further agricultural support were mentioned.

Governor Hope Uzodimma of Imo State reported that the NEC directed the sub-committee on crude oil theft to provide comprehensive recommendations at the next meeting. Meanwhile, Governor Abba Yusuf of Kano State announced the constitution of the board of the Niger Delta Power Holding Company, which had been without a supervising board for a long time.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, highlighted the activation of the Presidential Food Systems coordinating unit chaired by Vice President Shettima.