Nigerian Government has announced a N2. 3 trillion estimated stimulus package into the economy to prevent a potential recession for the nation.
The Minister of State for Budget and National Planning, Prince Clem Agba revealed this at the 2nd Virtual Community of Practice, COP)meeting of Commissioners and Heads of Budget and Economic Planning across the States of the Federation, held in Abuja. Nigeria.
Prince Agba said setting aside the fund was also necessary to accelerate the quick recovery of the economy.
In order to get it done, the Minister explained that three broad strategies have been developed by the Ministry.
”Economic stimulus package, mobilization of external support and funding (I. e rapid financing intervention) for 2020 budget and increase our non-iil revenue generation,” he said.
According to the Minister, these strategies are aimed at retaining and creating jobs, as well as addressing standing economic vulnerabilities as envisaged in the Economic Recovery and Growth Plan.
The Minister gave a breakdown of the intervention funds as “N500 billion Federal Government Of Nigeria intervention fund, N1. 2 trillion Central Bank Of Nigeria intervention funds, N334B BOI/Bilateral/Multilayeral interventions and additional FGN support of N300 billion,” Prince Agba explained.
The Minister noted that the packages consist of a combination of fiscal and monetary policies, doctoral interventions and social programmes.
According to him, “the fiscal and monetary policies will support States, business, households and individuals through grants. tax relief, payroll support, tariff deductions and direct support to the health sector”.
Mr Agba also explained that the interventions would ‘create a large number of jobs, empower farmers and entrepreneurs,use up to 100 percent of local materials and conserve foreign exchange.
He said the Ministry has commenced mobilization of external support and funding for the 2020 budget and have also taken steps to increase the nation’s oil revenue generation.
Agba added that without any form of stimulus to the economy, it ‘could contract to about -8.9 percent in 2020 in the worst-case scenario and 4.4percent in the best case scenario’
Earlier, in her welcome address, the Permanent Secretariat of the Ministry, Olusola Idowuat stated that the meeting is a very significant one.
“It provides us with the opportunity to chart a new course towards the development of the country amidst the COVID-19 pandemic,” she said.
The COP is a consultative forum for Honourable Commissioners /Head of Budget and Economic Planning across the Federation, constituted with a view to further enhance economic management process at the National and sub-National levels.
The theme for the 11th meeting is “COVID-19 strategies for Quick Recovery of the Economy.”