Why Nigeria must use oil windfall to build a more resilient economy – IMPI
The Independent Media and Policy Initiative (IMPI) wants the President Bola Tinubu administration to use benefits that would accrue to the country from the current surge in global crude price in the aftermath of the ongoing Middle East conflict to continue to build a more resilient economy.
This is at variance with the position of the Nigeria Labour Congress (NLC) which prefers the expected windfall to be used for wage increase and other measures that would only benefit a small section of Nigerians.
In a policy statement signed by its Chairman, Dr Omoniyi Akinsiju, IMPI outlined a number of initiatives the Tinubu administration has been institutionalising in the last three years.
It said: “Our follow-up study of the Federal Government’s microeconomic stimulus indicates a range of programmes and policies deployed to transform Nigeria from the economic docility of years of fuel subsidy dependency and import consumerism to enabling citizens to be productive through various levels of empowerment.
” One of such empowerments was the flag-off of the $500 million World Bank-funded Sustainable Power and Irrigation for Nigeria (SPIN) Project. The project aims to accelerate food production and increase power generation as part of a strategic intervention to strengthen dam safety and water resources management for improved irrigation and hydropower generation.
” Directly connected to this is the Federal Government’s approval of a N250 billion facility for the Bank of Agriculture (BOA) to support smallholder farmers across Nigeria, offering them access to credit at a single-digit interest rate, and in the same token, releasing 2.15 million bags of fertiliser to support farmers to boost food production across the country. The move aims to lower production costs, boost yields, and strengthen Nigeria’s food supply chain. The intervention will help reduce farmers’ production costs.
it also provided some insights into targeted initiatives of the Tinubu administration aimed at boosting food production and stemming the tide of poverty at the grassroots.
”Meanwhile, in another intervention targeted at boosting food production and reducing poverty, the Federal Government has launched an interest-free, collateral-free loan scheme targeting at least 22,000 farmers across the 774 local government areas of the country. The initiative, under the FarmerMoni Dry and Wet Season Programme, is being implemented by the National Social Investment Programme Agency (NSIPA) as part of the Renewed Hope Government Enterprise and Empowerment Programme (GEEP 3.0).
“To ensure increased food production, the Federal administration is currently implementing the GROW Fund to provide affordable financing for over 6,000 young entrepreneurs trained under the Inspire, Create, Start and Scale programme, in a move aimed at tackling the persistent funding gap confronting micro, small and medium enterprises in Nigeria.
”In addition, agricultural mechanisation has taken a pride of place, as the federal government is currently deploying 2000-plus tractors and 10,000-plus implements through a public-private partnership (PPP) arrangement, focusing on a 40 per cent subsidised lease-to-own model for smallholder farmers.
” To support the sub-nationals’ delivery on infrastructure, the federal administration has disbursed more than N2.45 trillion to federating States. The amount disbursed between March 2024 and August 2025, spanning over 17 months, was aimed at bolstering infrastructure development and strengthening subnational security operations, as part of ongoing efforts to address widespread insecurity and bridge critical infrastructure gaps across the country,” it said.
IMPI added that University lecturers have been enjoying a new lease of life while consumer credit is taking root in the country.
“In addition, it is appropriate to put on record that the Federal Administration has commenced the payment of the tax-free Consolidated Academic Tools Allowance (CATA) to university academics across the country, in fulfilment of the agreement reached between the Federal Government and university lecturers. The allowance, which ranges from a little over N1 million annually for graduate assistants and assistant lecturers to over N3 million for professors, is expected to increase university teachers’ take-home pay.
”The Consolidated Academic Tools Allowance (CATA) is a specific financial component of the salary structure for University Academic Staff in Nigeria. The Tinubu administration introduced it as a job-specific, tax-exempt allowance that supports the core research, teaching, and intellectual activities of university academics. It is the first time such a policy is being implemented in Nigerian universities. It has helped mitigate the perennial industrial actions that were the lot of Federal Government-owned universities over the years.
”We also note that the Transmission Company of Nigeria (TCN) is implementing transmission projects worth over $1.3 billion nationwide, funded by multilateral partners, to boost grid capacity and strengthen power delivery. The projects aim to improve wheeling capacity, reinforce weak corridors, and modernise critical grid infrastructure across the country. The successful delivery of these transmission projects nationwide will have positive implications for the cost of doing business, the quality of life, and the standard of living of Nigerians.
”We further acknowledge the intentional policy of enabling a credit economy to facilitate asset acquisition through the Nigerian Consumer Credit Corporation (CREDICORP). In just one year of operations, CREDICORP has disbursed over N37 billion in consumer credit to more than 200,000 Nigerians, with over half of them accessing formal credit for the first time.
”To scale capacity and professional capability, the Federal Government of Nigeria has launched a nationwide free training program for 10 million Nigerians on financial inclusion and literacy. The training is designed to equip Nigerians, particularly women and youths, with essential financial skills, investment knowledge, and digital competencies for sustainable wealth creation through the facilitation of six professional bodies, which will jointly design training programmes, certification pathways, digital skills initiatives, and mentorship platforms that would strengthen Nigeria’s financial and enterprise workforce, the think tank said.
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