Thursday, 25 June 2020 05:45

FEC approves N2.3trn economic stimulus plan

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Federal Executive Council (FEC) has approved Nigeria Economic Sustainability Plan (NESP) as recommended by Vice President Yemi Osinbajo’s led committee.

The N2.3 trillion stimulus plan is to support the Nigerian economy in the face of the disruptions and challenges of the Covid-19 pandemic.

Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said the Council approved report of the economic sustainability plan.

She said the committee made up of a number of cabinet ministers, and held extensive consultations with National Assembly and the Economic Advisory Council (EAC) and governors.

The goals of NESP is to create jobs, put money into the economy, hopefully stop it slipping into recession, support small businesses and prioritize local content (Made-in-Nigeria).

NESP is a 12-month ‘transit’ plan between the the Economic Recovery and Growth Plan (ERGP) and the ERGP-successor-plan currently being worked upon.

“The total package that we presented today is in the sum of N2.3 trillion. N500 billion of this is a stimulus package already provided for in the amended 2020 Appropriations Act. These are funds we have sourced from special accounts.

We also have N1.2 trillion of this funds to be sourced as structured low cost loans which are interventionary from Central Bank of Nigeria as well as other development partners and institutions. We have N344 billion that will be sourced from bilateral and external sources and  also additional funds that we can source locally.

“There is a strategy that has been adopted and this whole plan is to enable us respond to the triple problem of low exchange rate, youth unemployment as well as negative growth which is facing us now.

“The plan has to also support small businesses that have suffered severe impact of Covid-19 as a result of lockdowns. The hotel industry, private schools, restaurants as well as the transport sector have been badly impacted by this.

“We have also seen a significant impact on the poor and the vulnerable and even people that were okay as small traders, have been hard hit by the standstill that we witnessed as a result of lockdowns.

“Council was able to take our reports and the interventions in the plan is that we prevent businesses from collapsing and also to infuse liquidity around the Nigerian economy, to create jobs using labour intensive methods such as agriculture, facility management, housing, construction, direct labour interventions that will create a lot of jobs very quickly.”

“We had also proposed in the plan to undertake growth enhancing jobs, creating infrastructure investments in roads, bridges, solar power, communications technology and several others.

“We have promoted in the plan manufacturing and local production at all levels, we are advocating for the use of made in Nigeria in all of these public works that we will be doing as a way of creating jobs opportunities to enhance jobs sufficiency.”