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The Federal Government has unveiled plans to introduce a consumer credit funding program and a single-digit mortgage scheme aimed at alleviating the financial pressures faced by Nigerians.
These initiatives were announced by the Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, during Access Bank’s Corporate Forum in Lagos on Thursday.
Edun revealed, “Consumer credit is coming for Nigerians. It will support the funding of manufacturing and the sale of goods, enabling people to pay gradually, especially for durable products.”
He also highlighted the government’s commitment to providing mortgages with nearly single-digit interest rates, designed to stimulate growth in the housing and construction sectors. These long-term mortgages, spanning 25 years, will help make homeownership more accessible to Nigerians.
Additionally, Edun mentioned that the government is working closely with farmers to boost agricultural output. As part of this initiative, 60,000 farmers are expected to receive essential resources, with tangible results anticipated by early 2024.
“This administration may not be overly vocal, but we are working behind the scenes on numerous projects that will benefit Nigerians. By next January or February, people will start seeing the results in the form of crops like cassava and tubers,” he explained.
He further emphasized the government’s commitment to supporting vulnerable groups through direct financial transfers, allowing beneficiaries to prioritize their needs. “As demonstrated during COVID-19, there is a strong determination to succeed in providing support to those in need,” he added.
Edun also disclosed that Nigeria’s foreign reserves have seen a net inflow of $2.35 billion over the past seven months, contributing to the stabilization of the naira.
“For the past seven months of 2024, we’ve witnessed relative currency stability. We’re also seeing the gradual elimination of multiple exchange rates, increased foreign exchange liquidity, and rising gross reserves. Over this period, there’s been a net monthly inflow of about $2.35 billion,” he noted.
On the fiscal front, Edun highlighted the growth in government revenues, stressing that the focus is not on competing with the private sector but on complementing its efforts.
Looking ahead, Edun projected an improvement in Nigeria’s Gross Domestic Product (GDP) growth by 2026, with crude oil production expected to reach two million barrels per day before the end of 2024. He also outlined plans for tariff adjustments, including electricity tariffs for bands ‘A’ and ‘B’ staying above 200kWh, significant telecom tariff hikes, and a more efficient forex auction system.
Additional goals include boosting foreign reserves to $20 billion, reducing inflation to 22 percent, and cutting the Monetary Policy Rate (MPR) to 20 percent annually.
Economist Bismarck Rewane shared similar optimism, forecasting a 3.5 percent growth in Nigeria’s economy by 2026. He also predicted ongoing reforms in tariffs, foreign exchange, and inflation rates.
Roosevelt Ogbonna, Managing Director of Access Bank, underscored the importance of understanding government fiscal policy for businesses, noting, “Government continues to play a significant role in shaping our economic narrative.”
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