News

FG Unveils New Economic Strategy Focused on Growth and Citizen Welfare

Published by Tope Fakinlede on August 7th, 2024.

FG Unveils New Economic Strategy Focused on Growth and Citizen Welfare

Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has presented the federal government’s new strategy aimed at revitalizing the economy while ensuring the well-being of its citizens.

In a recent television interview, Edun highlighted the government’s dedication to achieving food security by making nutritious food both affordable and widely available to Nigerians. The administration plans to utilize both food reserves and import strategies to drive down food prices.

He emphasized that this approach, bolstered by the President’s support, is intended to enhance food accessibility and reduce living expenses. The minister pointed out that the government’s food production efforts are crucial for tackling inflation.

“Reducing inflation will lead to a more stable exchange rate, lower interest rates, and a more favorable environment for investment. This will, in turn, increase productivity, stimulate economic growth, and create jobs, which are essential for alleviating poverty,” Edun explained.

As food prices fall and inflation decreases, the exchange rate is expected to stabilize, interest rates to drop, and the overall investment climate to improve. These conditions are aimed at fostering investment, enhancing productivity, and generating employment—key factors in reducing poverty.

Edun also outlined substantial funding initiatives designed to support businesses of various sizes. Among these, an $800 million loan from the World Bank’s International Development Association (IDA) offers a 40-year term at a 1 percent interest rate. This soft loan, along with additional federal budget allocations, represents an extremely affordable financing option.

For businesses, the government has introduced diverse financial support measures. Nano enterprises can receive grants of N50,000, while small and medium-sized businesses have access to up to N1 million at a 9 percent annual interest rate. Larger medium-sized enterprises can obtain up to N1 billion under similar conditions. Additionally, the government is implementing import waivers and fiscal measures, including the removal of withholding taxes for the manufacturing sector and small businesses, to reduce operational costs.