Vice President Yemi Osinbajo said Thursday that the country’s economy would be in a big trouble as a result of the Coronavirus pandemic if drastic measures are not adopted as soon as possible.
Osinbajo said this when submitting the report of a committee set up by President Muhammadu Buhari to develop measures for post-COVID-19 Economic Sustainability Plan for the country.
He said with the decreasing prospects in crude oil sales at the international market, the resources which accrue to the Federation Account for the three tiers of government to share would soon start experiencing a monthly shortfall of N185 bilion.
He said unemployment would rise to 33.6% affecting about 39.4 million people in the country by the end of 2020 if all stakeholders fail to take prompt preemptive measures.
He said millions would fall into extreme poverty before the pandemic comes to an end, while GDP may fall to between minus 4.40% and minus 8.91%, depending on the length of the lockdown period and strength of our economic response.
“The inevitable mandatory lockdowns and social distancing measures put in place to curb the spread of COVID-19 have had a severe negative impact on farms and factories, as well as on trade, transport and tourism.
“Several projections, including those done by the NBS on behalf of the Economic Sustainability Committee, showed: a severe downturn in our oil earnings, as a result of which, even with oil price at 30 dollars a barrel, we would still have a shortfall of about N185 billion every month, in the amount available for allocation to the three tiers of Government,” he said.
He said part of the committee’s recommendations was that the country must find a way to “produce what we eat and consume what we produce.”
He said the county needs to create millions of new jobs and focus on encouraging local production, local services, local innovation, and emphasize the use of local materials.
He Nigerians can produce food, build houses and construct roads using local materials in all cases.
“We have therefore recommended that we must carry out mass programmes that create jobs and utilise local materials. Such will include:A Mass Agricultural Programme, which is expected to bring between 20,000 and 100,000 hectares of new farmland under cultivation in every State of the Federation and create millions of direct and indirect job opportunities.
“Extensive Public Works and Road Construction Programme focusing on both major and rural roads and using locally available materials like limestone, cement and granite.
“Mass Housing Programme to deliver up to 300,000 homes annually, engaging young professionals and artisans who form themselves into small and medium scale businesses within the construction industry, using indigenous labour and materials.
“Installation of Solar Home System, targeting 5 million households, serving about 25 million individual Nigerians who are currently not connected to the National Grid. We have also recommended -(i) 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.
“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, including support for MSMEs, especially in assisting to restructure their loans with banks, among others,” he said.
Speaking after receiving the report, the president said Nigerians must prepare for the worst while the government looks inward to find solutions.
The president commended Nigerians for their resilience and adaptation to the realities of COVID-19 pandemic which threw the entire world into serious economic crisis.
“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 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 stressing 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.
