Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has detailed the federal government’s ambitious plan to rejuvenate the economy while prioritising the welfare of its citizens.

Edun, at a recent television interview, underscored the government’s commitment to food security, aiming to make nutritious food affordable and accessible to all Nigerians. He revealed that the administration is not only drawing from food reserves but also facilitating imports to lower food prices.

According to him, this proactive approach, supported by the President’s commitment, is designed to make food more accessible and reduce living costs.

The minister explained that the government’s food production initiatives are pivotal in combating inflation.

“When inflation comes down, the exchange rate will stabilise. Interest rates will come down and the economy will have a chance. People will have a chance at reasonable rates to invest in various sectors of the economy, increase productivity, grow the economy and create jobs which is the key to reducing poverty,” he said.

“As food prices decrease, inflation is expected to drop, which will stabilise the exchange rate and lower interest rates. This environment will encourage investments, boost productivity, and create jobs—essential steps in reducing poverty” he said.

Edun also highlighted significant funding measures aimed at supporting businesses of all sizes. A notable initiative includes an $800 million loan from the World Bank’s International Development Association (IDA), offering a 40-year term at a mere 1 percent interest rate. This soft loan, coupled with additional federal budget allocations, represents the most affordable form of financing available.

For enterprises, the government has introduced a range of financial support schemes. Nano enterprises are eligible for grants of N50,000, while small and medium-sized businesses can access up to N1 million at a 9 percent annual interest rate. Larger medium-sized enterprises can secure up to N1 billion under similar terms. Additionally, import waivers and fiscal measures, such as the elimination of withholding taxes for the manufacturing sector and small businesses, are being implemented to lower operational costs.

Last updated on September 13th, 2024 at 09:45 pm