The Nigerian Federal Government has released ₦570 billion in grants to states to address economic hardship and hunger. President Bola Tinubu reported a revenue increase to ₦9.1 trillion and introduced a Compressed Natural Gas (CNG) Initiative to cut fuel costs, aiming to reduce inflation and enhance social services.
In response to growing concerns over economic hardship and hunger in Nigeria, the Federal Government has announced the release of ₦570 billion in grants to all 36 states. President Bola Tinubu, addressing the nation on August 4, 2024, emphasized that this funding aims to enhance livelihood support for citizens facing severe economic challenges.
Tinubu reported a notable increase in fiscal revenue, with ₦9.1 trillion accumulated in the first half of 2024, a significant rise compared to the previous administration’s earnings. The President highlighted that over 600,000 nano-businesses have already benefited from nano-grants, with an additional 400,000 businesses expected to receive support.
In his address, Tinubu also outlined a reduction in Nigeria's debt burden, with revenue spent on debt service dropping from 97% in 2023 to 68% in 2024. He revealed that the administration had cleared approximately $5 billion in foreign exchange obligations without impacting key programs.
The President discussed the government's focus on utilizing Nigeria’s gas resources, previously neglected in favor of oil, and introduced the Compressed Natural Gas (CNG) Initiative. This initiative is designed to reduce fuel import costs, potentially saving over ₦2 trillion monthly and reallocating resources to healthcare and education.
Tinubu assured that his administration is open to addressing the concerns of protesters involved in recent demonstrations, and he highlighted efforts to boost non-oil sector productivity. The government’s distribution of CNG conversion kits aims to reduce transportation costs and curb inflation, with conversion centers being established nationwide.
This announcement comes as Nigeria grapples with its dependency on imported petroleum products despite its substantial oil reserves, due to low refining capacity.
