The federal government has stated it has earmarked around N100 billion as Energy Transition Fund to provide Compressed Natural Gas (CNG) vehicles to Nigerians as well as N60 billion for the now postponed student loan program.
Senator Atiku Bagudu, the Minister of Budget and Economic Planning, made this statement during a press briefing in Abuja on Thursday, providing clarifications on the implementation of the 2024 Appropriation Act.
- He stated, “There was a N10 billion provision in the supplementary budget. Right now, we have N60 billions of student loan in the two budgets.”
“We believe that our students should have an additional option,”
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Consumer credit to manufacturers and Agricultural fund
The minister mentioned that the government is allocating N100 billion to the agriculture sector, aiming to attract additional funding to facilitate the growth of the mortgage industry.
Besides the agricultural fund, the Minister also stated that the N100 billion for consumer credit will help in revitalising the manufacturing sector which faces serious challenges.
- According to him, “Our economy can gain if many people can pay for goods and services over a period of time just as it’s being done around the world. And it will help our manufacturing sector.
- “The Consumer Credit is a veritable tool to provide access to goods and services to a lot of Nigerians. A committee is working on this.
- “It has not been implemented. The money has not been withdrawn; the fund is a catalytic fund and it’s expected to grow.”
Backstory
Following the removal of fuel subsidy in June, federal government promised to facilitate the transition from petrol powered vehicles to CNG being a more affordable alternative.
However, the planned roll out of the vehicles have been marred by severe delays further keeping transport cost elevated for a lot of Nigerians.
Also, in the past one-year federal tertiary institutions across the country have increased tuition fees significantly. In fulfilment of his campaign promise to provide loans to students, President Tinubu signed the Access to Education Act in June commonly styled as the Student Loan Act.
Like other programs, the implementation of the student loan act has been slow. Recently, the senate repealed the act and reintroduced a new bill.
Recommended reading: ‘Compressed Natural Gas (CNG) will create jobs, wealth for Nigerians’- FG
