President Bola Tinubu criticized current power generation capacity as “shameful,” highlighting the country’s struggle with producing only 4.5 gigawatts (GW) of electricity. The statement came during his inauguration of the 31-member Presidential Economic Coordination Council at the Council Chamber, Presidential Villa, Abuja. President Tinubu expressed frustration over the energy shortfall and outlined a comprehensive plan to address various economic challenges through public-private partnerships and innovative solutions.
During the event, President Tinubu underscored the critical state of energy security in Nigeria, stating the urgent need for collaborative efforts to enhance the nation’s oil and gas sectors along with a significant increase in electricity production and distribution. “It is so shameful that we are still generating 4.5GW of electricity. We are determined to increase our oil production to two million barrels per day within the next few months and we are determined to remove all entry barriers to investments in the energy sector while enhancing competitiveness,” Tinubu remarked.
This push for energy reform is part of a broader Economic Stabilization Programme introduced by Tinubu, aimed at stabilizing the economy, boosting job creation, and ensuring economic security. The program’s energy initiative includes ambitious targets such as increasing on-grid electricity delivery to homes and businesses from 4.5GW to 6GW within six months and raising oil production to 2 million barrels per day over the next year.
Moreover, the president detailed initiatives under the Economic Stabilization Programme to bolster agriculture and food security. Efforts will focus on increasing the production of staple crops grown by small-holder farmers from 127 million metric tons in 2023 to 135 million metric tons in the current year. This initiative will also involve partnerships with larger-scale commercial farmers and support qualified farmers with advanced tools like satellite imagery for land use planning and crop rotation.
In the health and social welfare sector, the Tinubu administration plans to make essential medicines more affordable for 80-90 million Nigerians and expand healthcare insurance to cover 1 million vulnerable individuals through a Vulnerable Group Fund in collaboration with state governments. The plan includes deploying 20,000 healthcare workers to provide services where most needed and powering up 4,800 healthcare centers with renewable energy sources.
Addressing fiscal measures, President Tinubu announced several interventions aimed at improving access to finance across various sectors. These include supporting youth-owned enterprises to create 7,400 new micro, small, and medium-sized enterprises (MSMEs) across all states within the next 6-12 months. Additionally, a N650 billion facility will offer lower-cost short-term facilities to youth-owned businesses and manufacturers based on their market demand and financial health.
The Manufacturing Stabilization Fund is set to rejuvenate up to 250 companies and provide cost-effective long-term facilities to large and medium-scale manufacturers that cater to domestic and export markets. Another significant component is the Sub-national Matching Fund, which will work with the Bank of Industry and sub-national governments to foster MSME growth through single-digit interest rate loans.
Expanding the Bank of Industry’s Rural Development Programme, the administration aims to support the development of 300 new MSMEs per state, totaling 11,100 new rural-based MSMEs nationwide. Furthermore, the Mortgage Finance Acceleration Facility is designed to facilitate the construction of an additional 25,000 housing units, addressing the housing needs exacerbated by the cost-of-living challenges.
Over the course of the next six to twelve months, these extensive fiscal policies are anticipated to create roughly 4.7 million direct and indirect jobs, indicating a strong effort by President Tinubu’s administration to not only address the deficiencies in power generation but also to significantly stimulate economic growth across a range of sectors.
