President Muhammadu Buhari on Thursday directed the Ministry of Finance, Budget and National Planning to pay salaries.
As the economy takes the heat from the global oil price collapse as a result of the ravaging Corona virus pandemic, Federal government had earlier announced that salaries will not be affected by critical decisions taken to respond to the challenges
Government had announced a cut in crude oil bench mark down to $30 from the $57 in the 2020 budget on the backdrop of falling crude oil prices
The Minister who announced this while briefing after the Federal Executive Council meeting presided over by President Muhammadu Buhari, said FEC approved reductions in capital budget by 20%,
The new arrangements reduce the N10.59T 2020 budget by as much as N1.5T at the end of the new engagements with the National Assembly, is also expected to increase deficit to over 3T as against the current
Zainab said the President also directed the ministry to ensure that critical infrastructure like roads, rails are protected and as much as possible, use local inputs so that the country retains value within her economy.
He further directed that measures that protects the poor and the vulnerable are in place.
Minister of Finance, Budget and National Planning, Zainab Ahmed, who heads the presidential committee to review the impact of coronavirus on the economy, made the disclosure while fielding questions from State House Correspondents, Abuja.
The committee had earlier met and briefed the President on current happenings around the world due to COVID-19 and the impact on the nation’s economy.
On the directives given, Ahmed said: “well, he has directed that we should make sure that salaries are paid, make critical infrastructures like roads, rails are protected, as much as possible.
The President also charged the team on use of local inputs in development of infrastructure as a means conserving resources, while retaining value within our economy.
” He said we should make sure that we adopt measures that protects the poor and the vulnerable.”
Speaking on the purpose of the meeting, she said, “This meeting was just to brief Mr. President as the situation keeps evolving on a daily basis. As the health crisis gradually expands, affecting States and also the lockdown that has been ordered to help curtail expansion of the health crisis.
“The consequences of the lockdown is the additional slowing down of the economy and the measures that we need to take to mitigate the negative consequences of the slow trade and businesses.”
Minister of State Petroleum Resources, Timipre Sylva, said the economy is not in the best of sharp due to COVID-19 and oil prices are collapsing every day, hence the need for the President to be constantly briefed.
Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, said the economy is not looking as simple as everyone thought it would be.
He said: “The global economy naturally like we all know at this time will naturally suffer growth problems and may even lead to recession globally. So we are trying to see what we can do as a country to rescue our own situation so we don’t go the direction many will go.
“It is not going to be easy but we can only assure our people that we are on top of it and that we will resolve it and Nigerians will still be better for it.”
Other members of the committee are
Minister of State, Budget and National Planning, Clement Agba and the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mela Kyari
Tony Ailemen, Abuja
