Nigeria’s economic response plans to the global Coronavirus pandemic on Thursday gained positive push with the submission of the Economic Sustainability Plans by Vice President, Yemi Osinbajo.
The over N2.3 trillion plan which is aimed at developing a clear Economic Sustainability programme in response to challenges posed by the COVID-19 pandemic, has also proposed monetary policy measures in support of the plan and provided a Fiscal/Monetary Stimulus Package.
This includes support to private businesses with emphasis on strategic sectors most affected by the pandemic and vulnerable segments of the population as well as identify fiscal measures for enhancing distributable oil and gas revenue, increasing non-oil revenues and reducing non- essential spending, towards securing sufficient resources to fund the plan.
The Osinbajo committee recommended, among other things, support for local production and manufacturing of all that is possible, including tech apps, software, shoes, garments, steel fabrication, ceramics and furniture, with the required capital and essential machinery.
It also recommended the provision of ample support for the informal sector through low interest loans and by easing procedures for registration, licensing, obtaining permits, etc. By these means, urban and informal business people like mechanics, tailors, artisans, and petty traders, will be encouraged to improve and develop their services.
Others include Support for MSMEs, especially in assisting to restructure their loans with banks. Among others, this will assist businesses in the pharmaceutical, aviation, hotels and the hospitality industry, private schools, road transportation, technology companies, and the creative industry, among others.
It also include facilitation of broadband connectivity across the country and creation of a wide variety of technology and ICT jobs.
With the report, government is expected to now expand the Social Investment Programme, through an increase in the number of cash transfer beneficiaries, N- Power volunteers and sundry traders enjoying small and micro loans through the MarketMoni and TraderMoni schemes. The preexisting conditional cash transfer will also be extended to cover a larger number of the extremely poor.
Osinbajo, while presenting the plan to the President, said the Committee was mandated to articulate specific measures to support the government at the sub national level including the FCT, proposed a clear-cut strategy to keep existing jobs and create opportunities for new ones; and identified measures that may require legislative support to deliver the Plan.
” As we go forward, we must chart a new course and remain steadfast. I believe the priorities contained in this plan present a practical way of achieving our desire of a truly competitive economy that can support our people and secure our future,” Osinbajo said.
The plan, according to Osinbajo, is the result of a painstaking wide consultation with various stakeholders including the Presidential Economic Advisory Council, the 36 State Governors and the leadership of the National Assembly.
Others include Economic Recovery and Growth Plan (ERGP), reports of the Economic Crisis Committee (headed by the Minister of Finance, Budget & National Planning), the Finance Act 2019, the Central Bank of Nigeria (CBN) proposals; and the National Economic Council Report on COVID-19 Crisis.
The Plan is expected to provide succour to Nigerians when fully implemented, taking into account the dangers posed to the economy by the global economic slowdown, which also resulted in a drastic fall in crude oil production and prices, with serious implications for government revenues and foreign exchange earnings.
President Buhari while receiving the report, commended Nigerians for their resilience under the weight of the Coronavirus pandemic
“I am pleased to hear that the Economic Sustainability Committee consulted with both the National Economic Council and the National Assembly and I look forward to a continuing partnership with both organs, to implement what I consider a national plan.
“As we go forward, we must chart a new course and remain steadfast. I believe the priorities contained in this plan present a practical way of achieving our desire of a truly competitive economy that can support our people and secure our future.
He commended the committee for completing the critical national assignment in good time, adding,“l believe that with God’s help and with a sense of duty to prosperity, we will successfully reset our economy for a brighter future,”
The Nigerian leader said the emergence of coronavirus threw the entire world into serious economic crisis thus, making things difficult.
“While the COVID-19 pandemic spread through our towns and cities, it continues to take a massive toll on the economy. I know that many of us have experienced great difficulty during this time, businesses have considerably slowed down and in certain instances, operations closed, work days have been cut short and personnel liberties restricted, people have lost their jobs and earning a living has indeed been difficult.
“This has been a trying time for those in the informal sector, which constitutes a large part of our economy, important family celebrations were held without the presence of loved ones, schools are closed and parents have had to resort to home schooling in addition to juggling other responsibilities.
“Despite all these, Nigerians have done their best and persevered. I must salute Nigerians for their resilience in adapting to the realities of the covid-19 effect while also recognising the super human effort of our frontline health workers who continue to play a critical role in keeping our country and people safe,” he said.
While noting the effects of the pandemic on the revenue and policies and programmes of government, the President said more efforts would be geared towards making life better for citizens.
“Non-oil income, largely made up of taxes, are also dramatically reduced on account of the lockdown. It is clear that businesses face the prospect of collapse so we must prepare for difficult times, while the government continues to seek ways of supporting businesses and industry,” he said.
Commenting on the job done by the committee that produced the Economic Sustainability Plan, President Buhari appreciated the committee’s good work, where it made some important recommendations that can serve as a national plan to the nation.
