President Bola Tinubu has given all state governors a seven-day deadline to provide detailed plans on increasing food production in their respective states.
This directive was issued during the 142nd National Economic Council meeting, attended by state governors and some deputies at the State House in Abuja. Tinubu also announced the launch of a National Construction and Household Support Program. This initiative includes:
:▪ A grant of N50,000 for three months to 100,000 families in each state.
▪ Disbursement of N155 billion for assorted foods.
▪ Allocation of N540 billion for household grants.
▪ Each of the 36 states and the Federal Capital Territory (FCT) will receive N10 billion for CNG buses.
The combined cost of these measures—covering the N50,000 grants for 3.7 million families across the 36 states and the FCT, the N10 billion allocation for CNG buses, and the N155 billion for assorted foods—amounts to approximately N1 trillion.
President Bola Tinubu announced new plans to boost agricultural productivity, strengthen the economy by creating opportunities in the agriculture, manufacturing, and construction sectors, and provide urgent economic relief for Nigerians.
Under the National Construction and Household Support Program, priority will be given to the Sokoto-Badagry Highway due to its strategic importance for agricultural sustainability. The Sokoto-Badagry Highway corridor includes: 216 agricultural communities, 58 large and medium dams across six states, seven special agro-industrial processing zones, 156 local government areas, 39 commercial cities and towns and over 1 million hectares of arable land.
Since the change in administration in May 2023, the country has undertaken bold reforms, including eliminating the petrol subsidy and implementing foreign exchange (FX) reforms, resulting in a market-reflective exchange rate. These measures have led to significant increases in the prices of petrol, electricity, and food, causing a steep rise in the cost of living while growth in disposable income remains subdued.
To mitigate the inflationary impact of these reforms on the most vulnerable, the government has implemented sporadic measures such as temporary cash transfers reaching 15 million households and an emergency food plan. However, these efforts have yielded minimal results. A clear pathway for implementing and executing policy plans to address food supply bottlenecks and increase the disposable income of the populace is essential as these intermittent cash transfers are too small and not wide reaching enough to alleviate the cost-of-living crisis.
CSL Research
