Nigerian President Bola Tinubu has asked his economic management team to prepare a 2 trillion naira ($1.33 billion) stimulus plan to address concerns about food supplies and pricing and bolster key sectors, the finance minister said on Thursday.
The package, which will be developed in collaboration with state governments and the private sector, will allocate 1 trillion naira ($664.45 million) to agriculture, food security, and the energy sector, with 350 billion naira set for health and social welfare, Olawale Edun told reporters.
Since taking office in May last year, Tinubu has implemented reforms including slashing fuel and electricity subsidies and devaluing the naira currency twice as he struggled to raise investment and boost output.
But the economy is growing at a pace well short of the 6% annual expansion he has targeted, while the reforms have driven inflation to a 28-year high and worsened a cost-of-living crisis.
Food security
"The number one priority Mr. President is focused on is food production and food security," Edun said on Wednesday after Tinubu inaugurated a revamped economic management structure.
"The commitment to providing food at an affordable price and the available quantities is uppermost in Mr. President's mind at this particular time," Edun said.
The plan also seeks to address declines in oil output and increase production to 2 million barrels per day (bpd), aiming to generate additional revenue and foreign exchange for the economy.
Nigeria relies on oil for more than half of its revenue and about 90% of foreign exchange.
Oil output dips
But oil output has fallen in recent years, hobbled by large-scale theft, sabotage and the exit of oil majors from land fields plagued by insecurity to focus on offshore exploration.
Edun did not specify the timeframe for implementing the stimulus plan.
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