The federal government has unveiled plans to get approval for immediate importation of rice and maize seeds: rice – 10,000MT (100,000Ha), maize – 10,000MT (500,000Ha) as part of stimulus intervention to ensure domestic food production amidst growing concern of nationwide food insecurity.
Nigeria’s food inflation increased from 24 per cent in 2023 to 40.53 per cent in May 2024 caused by suboptimal food production resulting in a supply deficit of key crops, insecurity and foreign exchange devaluation causing a rise in imported food costs. 24 million Nigerians are projected to be food insecure by August 2024.
In a new economic stabilisation draft document that was presented to President Bola Tinubu on Wednesday, minister of finance and coordinating minister of the Nigerian economy Wale Edun urged the government to employ the use of e-wallet system to develop a national fertiliser distribution optimisation plan (an initiative of the former President Goodluck Jonathan-led administration) for the farmers.
The federal government is also planning to support new and existing youth-owned enterprises across all 36 states of the federation, creating 7,400 MSMEs within the next 6-12 months with an N100 billion fund. If that is done, the government would be spending fresh N3.6trn for the project.
The recommendations came from the report of the Economic Management Team’s Emergency Taskforce established to formulate an immediate action plan required to restore stability, growth of, and confidence, in the nation’s economy.
The draft report is tagged ‘Accelerated Stabilisation and Advancement Plan’.
Chaired by Edun, the committee is also proposing the creation of a N200 billion large MSME support facility to provide lower-cost short-term facilities to large MSMEs across various industries, including light manufacturing, food processing, pharmaceutical, agriculture, and wholesale and retail trade, based on their current and future receivables, company rating, and market demand for products.
Aside from that, he has asked the president to approve a N1 trillion manufacturing stabilisation fund to deliver lower cost (9.0 -11.0 per cent) long-term facilities to large and medium-scale manufacturers that produce finished goods for domestic and export, on the strength of their receivables (current and future), company rating and market demand for products.
The plan is to also secure a subnational matching fund of N150 billion tagged ‘Grow Nigeria Development Fund’ consisting of a single-digit interest rate loan portfolio with BOI and matching fund agreement with subnational governments to grow SMEs.
The aim is to create an operating environment with macro-economic stability resulting in a more predictable and less risky business terrain. It believes it will moderate inflation, low exchange rate volatility, achieve modest fiscal deficits, sustainable levels of public debt and current account balance.
The government said it would ensure businesses have access to affordable finance, allowing them to reduce financing risks.
The team was composed of participants from the federal government, state governments and advocacy groups such as the Manufacturing Association of Nigeria and the Nigeria Economic Summit Group to ensure a collaborative approach.
The EET, he added, has proposed an emergency package to President Tinubu and the Presidential Economic Coordination Council – which will provide an accelerated response originating from the aforementioned committees.
