John Smith
Fri, Sep 1, 2023 11:10 PM

N2 billion released to Nigerian states to boost economy

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N2 billion released to Nigerian states to boost economy
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has announced the release of N2 billion to the 36 Nigerian states and the federal capital territory. The funds, provided as a combination of loan and grant, aim to boost the economy while avoiding a spike in inflation. The government's support also includes N500 billion in palliatives for poor and vulnerable Nigerians, and plans to encourage investment, increase productivity, create jobs, and reduce poverty.

In a press briefing held in Abuja, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed that N2 billion has been released to the 36 Nigerian states and the federal capital territory. This financial support comes in the form of a combination of loan and grant and aims to provide an economic boost while lessening the impact on inflation rates.

Edun explained that releasing the entire sum of N5 billion at once would be counterproductive as it could lead to an inflationary spiral, increasing the cost of goods and affecting the exchange rate liquidity. Therefore, the government has decided to release the funds in tranches to prevent negative consequences on the economy.

Additionally, the government plans to provide N500 billion in palliatives to assist poor and vulnerable Nigerians. The primary focus is on delivering a better life for all citizens by encouraging investment, increasing productivity, and ultimately, creating jobs to reduce poverty.

Addressing the current challenges faced by Nigerians due to the removal of petrol subsidy, Minister Edun expressed optimism that the benefits of this decision would soon become evident. He emphasized that Nigerians hold significant funds in domiciliary accounts and foreign financial institutions. By providing the right incentives and creating a conducive environment, the government aims to attract these funds back to the Nigerian economy, stimulating growth and development.

Taiwo Oyedele, the Chairman of the Presidential Committee on fiscal policy and tax reforms, emphasized the importance of tax collection, stating that the federal government has the potential to generate N20 trillion if proper taxes are paid. Oyedele mentioned that the government is reviewing past incentives granted, acknowledging a loss of N6 billion due to these schemes. Going forward, the government plans to target incentives towards those who need them the most, recognizing the potential revenue from taxes surpasses that generated from crude oil.

The release of N2 billion to Nigerian states, in conjunction with the government's palliatives and plans for investment and improved taxation, aims to create a more sustainable and prosperous economy for all Nigerians.

Source of content: OOO News 2023-09-01 News

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