COVID-19: FG announces N2.3trn stimulus package

Isaac Anumihe, Abuja

The Federal Government yesterday announced it has approved a total stimulus package of N2.3 trillion to cushion the effect of coronavirus pandemic on the economy.

The government’s package  consists of N500 billion Federal Government intervention fund, N1.2 trillion Central Bank of Nigeria (CBN) Intervention Funds, another N334 billion Bank of Industry (BOI)/Multilateral Interventions Fund and additional FGN support of N300 billion.

Making the announcement in Abuja at the second virtual Community of Practice (CoP) meeting of the Commissioners of Economic Planning, Minister of State for Budget and National Planning, Prince Clem Ikanade Agba, explained that the packages consist to a large extent, a combination of fiscal and monetary policies, sectoral interventions and social programmes.

He said that the fiscal and monetary policies will support states, businesses, households and individuals through grants, tax reliefs, payroll support, tariff reductions and direct support to the health sector.

Agba said the real sector interventions will focus in particular, on mass agriculture, mass housing, public works, solar power installations and support to small businesses.

“A common feature of these interventions is that they will create a large number of jobs, empower farmers and entrepreneurs; use up to 100 per cent of local materials thus conserving foreign exchange and have guaranteed offtake of outputs especially in agriculture and housing” he said.

Earlier, the Permanent Secretary of the Ministry of Finance, Budget and National Planning,  Mrs Olusola Idowuat, said the meeting was aimed at providing the opportunity to chart a new course towards the development of the country amidst the COVID-19 pandemic.

She said that the pandemic has a negative effect on the economy, particularly on the revenue to the Federation Account.

“The declining revenue has imposed pressures on the ability of both the states and Federal Government to  execute their budgets” she observed.

Idowuat said that with the assemblage of the Governor of Central Bank of Nigeria, Minister of Agriculture, Director General,  Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Director General, Nigerian Export Promotions Council (NEPC), Managing Director, Bank of Industries (BOI),among  the dialogue will be a springboard to the  development of workable solution to the national economic challenge.