IMPI lauds Tinubu for $20bn boost in Agriculture

The Independent Media and Policy Initiative (IMPI) has applauded President Bola Ahmed Tinubu for securing $20 billion foreign investment aimed at boosting the agricultural sector of the economy.

The IMPI, chaired by Mr. Niyi Akinsiju, at a press conference held in Abuja on Tuesday, also referred to the impressive reduction in the nation’s debt profile, which had fallen from $108 billion to $91 billion, as some of the gains recorded after the end of what he termed “the wasteful regime of fuel subsidy,” which contributed in no small measure to the huge debt accumulated by the country over the years.

The policy think tank, while reacting to the agitations by some concerned Nigerians threatening to protest the high cost of living, remarked that the flurry of President Tinubu’s interventions in agriculture has also generated a total of N309bn into the economy in one year.

IMPI assured that the waiver of import duties and tax on food importation will make food abundantly available and affordable locally to Nigerians.

Acknowledging the impact of the inflationary trend in the country, IMPI noted that the impressive reduction in the national debt profile has now dropped from 97% in the first half of 2023 to 68% in 2024.

This, it noted, is in addition to the N7.3 trillion Ways and Means obligation paid back to the Central Bank of Nigeria by the federal government within a year of the Tinubu administration.

IMPI further referred to the budget deficit, which has fallen from 6.1% to 4.4%, as a clear indication of strategic fiscal management within the last 14 months.

Previewing the economic gains so far recorded with Tinubu at the helm, IMPI argued that the healthy fiscal environment is apparently helped by the increase in the quantum of crude oil production, from 1.28 million barrels per day in April 2024 to 1.61 million barrels per day as of July 23, 2024; the first time in 42 months.

It added: “Connected to this is the vast improvement in the balance of the nation’s foreign reserve, which increased from $32.29 billion in April 2024 to $37.05 billion on July 18, 2024.

“Remarkably, between June 30 and July 18, the external reserves rose from $34.70 billion to $37.05 billion—indicating an increase of $2.35 billion in about 18 days. This foreign reserve balance covers 11 months’ imports, another indication of a stabilising economy.

“In other sectors of the economy, beginning with power, we are encouraged by the quantum leap in power generation and transmission. The sector recorded a number of interventions through policies and actions by the federal government. It was a remarkable feat when 700 megawatts of electricity were added to the national grid with the commissioning of the Zungeru Hydro-Electric Power Station in Niger State.

“In addition, the power sector also recorded the commissioning of two substations in Kebbi and Ajah in Lagos to consolidate the nation’s electricity distribution capacity. This has led to a considerable improvement in power supply across the country.

“We also commend the President for the payment of the historical N3.3 trillion Naira debt owed the power sector, which for years, crippled the nation’s capacity to generate, transmit, and distribute the required electricity, and unfortunately subjected the populace to the agony of endless power outages.

“We have observed an evolving paradigm in the nation’s economic template, going by the recent announcement of employment opportunities for 30,000 fellows that have graduated from cohort 1 of the ongoing 3 Million Technical Talents programme under the Ministry of Communications, Innovation, and Digital Economy. This is indicative of an economy that is producing digital talents for both domestic and global engagement.

“Meanwhile, it is on record that the federal government has distributed 60,452 metric tons of improved seeds, 887,255 metric tons of seedlings, 138 value kits, 501,726 litres of agrochemicals, 62,328.5 metric tons of inorganic fertilisers, 1,000 kg of fungicide, and 33,200 equipment to farmers across different value chains to enhance agricultural production.

“Besides, the creation of the Ministry of Livestock Development may have opened a new vista in concerted efforts to advance agriculture. This initiative reveals the true intention of the President to harness Nigeria’s huge livestock potential and to find a lasting solution to the incessant Farmers-Herders clash in the country as well as reinforce the value chain that will create more employment opportunities.

“On transportation, the reopening of the Lagos-Kano railway line is considered another milestone in the effort by the federal government to prosper the national economy. This is best appreciated within the context of the contributions of the Lagos-Kano railway line to the economic, social, political, and cultural development of Nigeria. The facilitation of social and cultural integration between and among various ethnic groups along the Lagos-Kano railway route was legendary and also contributed immensely to the cementing of national unity. We commend the president for the landmark achievement.

“In the education sector, the establishment of the Nigerian Education Loan Fund (NELFUND) may indeed be the game changer to facilitate access to education. Impressively, within a short period of its establishment, applicants have started receiving credits for school fees and upkeep. This is revolutionary, and all Nigerians must applaud this.

“Let us not forget that the federal government, only a few days ago, opened the portal for a reinvigorated National Youth Investment Fund (NYIF) to be administered by the Ministry of Youth Development. It was a N75bn funding initiative for young business owners, which former President Muhammadu Buhari introduced in 2020, but the Tinubu administration has now expanded it by about 50% to N110bn in order to accommodate more beneficiaries among the youth demography.

“We note the pragmatic approach adopted by the Tinubu Administration to resolve the age-long contradiction inherent in Nigeria’s federal system. This is evident in the President’s decision to approach the Supreme Court concerning the financial autonomy for the 774 local governments. This, for us, is an example of wisdom and goodwill.

“We therefore call on State Governors to wholeheartedly embrace the judgement of the Supreme Court and also cooperate with the federal government in ensuring the disbursement of funds.

“And if there are still doubts about the sincerity of the federal government to make things work, the cabinet approval of President Tinubu’s proposal to ease the operation of the single largest private sector initiative in the country should clear everything.

“The lifeline handed to Dangote and other Refineries that will see them getting crude oil from NNPCL in naira underlines the President’s pro-business mindset at a time many people were worried about the damage the rift in the petroleum industry could inflict on Nigeria’s quest for improved Foreign Direct Investments (FDI).

“We consider this policy as not only momentous but a practical economic intervention that will go a long way to eliminate the need for international letters of credit as well as saving the country billions of dollars that may have to be committed to importing refined oil. This will also reflect on the pump price of petrol.

“From the foregoing, it is obvious that the policies conceived, deployed, and being implemented by the Tinubu Administration do not only appear to be functioning but also, by our estimation, are impactful. It shows a clear understanding of the constricted economic models that were implemented over the years, which, more or less, had limited our development and growth potentials.

“For us, the policies being implemented are enablers of an enhanced economic drive that will ensure broader prosperity and wealth creation for all Nigerians. However, as the President had noted variously, to accomplish the envisaged era of economic growth and prosperity, therefore, there is a need for all Nigerians to commit to this vision as it evolves.

“By our own understanding, it may be slow, it may be painful, but it is certain that as a people, we will witness this upcoming period of economic upsurge and prosperity.

“Those who want to protest have the right to protest, but this must be done in the appropriate context. A protest should be anchored on substantive rationale or reasons that are achievable. Based on this, we appeal for patience so as not to disrupt the gathering momentum being built in the nation’s economic sphere that may be counterproductive.”