NEC backs 90-day plan to cut food, transport costs as hardship persists

The National Economic Council (NEC) has endorsed a 90-day economic action plan to ease Nigeria’s cost-of-living crisis, improve food affordability and reduce the burden of rising transport costs, as the Federal Government faces pressure to translate its economic reforms into tangible relief for households and businesses.

The plan, proposed by the Federal Ministry of Finance, identifies five priority areas: food affordability, tax harmonisation, completion of high-impact projects, removal of investment bottlenecks and regulated household support.

The decisions were taken at the 161st NEC meeting on Thursday, chaired virtually by Vice-President Kashim Shettima, following a presentation by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.

The Council also approved a national dashboard to track projects across the federation, with particular emphasis on transparency and accountability in the use of funds generated from petrol subsidy removal.

The latest intervention comes amid persistently high living costs, with petrol selling for between N1,370 and N1,400 per litre in several parts of the country, putting pressure on transport fares, food distribution and the operating expenses of businesses.

For households, the central issue is how quickly the new plan can reduce the amount spent on essential goods and services. For businesses, tax harmonisation, lower logistics costs and the removal of investment bottlenecks could help ease operating expenses and support production.

Shettima urged state governors and government institutions to ensure that the gains from President Bola Tinubu’s economic reforms translate into affordable transportation, improved healthcare, employment opportunities and greater financial security.

He said economic policies should be judged by their effect on citizens rather than the announcement of reforms.

“The first dividend of prosperity should be the confidence to plan a life. Our task is to make such confidence less dependent on fortune,” he said.

Oyedele said the next phase of the reform programme would require closer coordination between federal and state governments to turn improvements in economic indicators into measurable gains for households and businesses. He identified reducing headline inflation and interest rates to single-digit levels by 2027 as key policy objectives.

A major part of the intervention targets transport costs through a joint financing framework between federal and state governments for compressed natural gas (CNG) and electric vehicles.

NEC decided after receiving a presentation on the National Affordable CNG Transit Programme from the Chairman of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, Ismaeel Ahmed.

The Council directed the relevant authorities to engage transport unions and operators to ensure that savings from cheaper alternative-energy vehicles translate into lower fares for commuters. A committee will be constituted to coordinate funding, engage stakeholders and develop measures to improve affordability and access.

The decision follows the Federal Government’s earlier claim that 100 CNG-powered buses in Kaduna carried about 3.2 million passengers in their first year, saving commuters more than N3.5 billion in transport costs. However, the challenge remains extending comparable benefits to more commuters across the country.

The new 90-day plan also places renewed emphasis on food affordability, although the Council’s statement did not disclose specific funding allocations, detailed implementation targets or the individual measures through which food prices would be reduced.

That gap will be important as implementation begins. Without clear responsibilities, measurable targets and transparent reporting, the plan risks becoming another policy announcement whose benefits are difficult for households to identify.

For the government, the immediate test is whether the next three months produce demonstrable reductions in food and transport costs, fewer obstacles for businesses and more visible benefits from public spending. With Nigerians still grappling with high living expenses, success will depend on how quickly the approved measures move from the Council’s resolutions to practical relief.

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