COVID-19: Unemployment in Nigeria May Hit 39.4m, Says Osinbajo
*Laments of incoming extreme poverty on Nigerians
*Indicates only imports support local production will be allowed
Vice President Yemi Osinbajo Thursday gave a strong indication that the unemployment rate in Nigeria may hit 39.4m or 33.6 per cent by December this year as a result of the coronavirus pandemic.
Osinbajo in a report by the Economic Sustainability Committee (ESC), which he chairs said there is likely to be a monthly oil revenue loss of N185bn.
In his report titled “Bouncing Back: The Nigerian Economic Sustainability Plan,” the Vice President said that even the oil revenue remains at $30 per barrel for the whole year, Nigeria will still suffer a monthly loss of N185bn.
He made it clear that Nigerians will slide into extreme poverty by the time coronavirus ends with a fall in the gross domestic product (GDP) to -4.40 per cent and minus -8.91 per cent .
According to him, “In addition, 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: (i) 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; (ii) that unemployment may rise to 33.6 per cent or about 39.4 million people by the end of 2020, if we fail to take prompt preemptive measures; (iii) that millions more will fall into extreme poverty, before the pandemic ends; (iv) that GDP may fall to between minus 4.40 per cent and minus 8.91 per cent depending on the length of the lockdown period and strength of our economic response.”
Osinbajo said that the only way forward was for Nigerians to think of producing what they eat.
He said that to create new jobs, government needs to encourage local innovations and use local materials for food production, houses and road construction.
He said the only way imports should be allowed would be to support local production.
He advocated for mass programmes that will lead to job creation, adding that such programmes as “mass agricultural programme, extensive public works and road construction programme, installation of solar home system”, among others should be the way forward.
According to him, “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, targetting five 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, (ii) 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; and (iii)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, amongst others.
“Facilitation of broadband connectivity across the country and creation of a wide variety of technology and ICT jobs.
“Expansion of 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”.
It would be recalled that the President Muhammadu Buhari had in March set up a committee to come up with a plan to address the challenges posed by the coronavirus in the country.
The report was submitted to President Thursday with ministers and other government officials in attendance.
*Indicates only imports support local production will be allowed
Vice President Yemi Osinbajo Thursday gave a strong indication that the unemployment rate in Nigeria may hit 39.4m or 33.6 per cent by December this year as a result of the coronavirus pandemic.
Osinbajo in a report by the Economic Sustainability Committee (ESC), which he chairs said there is likely to be a monthly oil revenue loss of N185bn.
In his report titled “Bouncing Back: The Nigerian Economic Sustainability Plan,” the Vice President said that even the oil revenue remains at $30 per barrel for the whole year, Nigeria will still suffer a monthly loss of N185bn.
He made it clear that Nigerians will slide into extreme poverty by the time coronavirus ends with a fall in the gross domestic product (GDP) to -4.40 per cent and minus -8.91 per cent .
According to him, “In addition, 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: (i) 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; (ii) that unemployment may rise to 33.6 per cent or about 39.4 million people by the end of 2020, if we fail to take prompt preemptive measures; (iii) that millions more will fall into extreme poverty, before the pandemic ends; (iv) that GDP may fall to between minus 4.40 per cent and minus 8.91 per cent depending on the length of the lockdown period and strength of our economic response.”
Osinbajo said that the only way forward was for Nigerians to think of producing what they eat.
He said that to create new jobs, government needs to encourage local innovations and use local materials for food production, houses and road construction.
He said the only way imports should be allowed would be to support local production.
He advocated for mass programmes that will lead to job creation, adding that such programmes as “mass agricultural programme, extensive public works and road construction programme, installation of solar home system”, among others should be the way forward.
According to him, “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, targetting five 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, (ii) 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; and (iii)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, amongst others.
“Facilitation of broadband connectivity across the country and creation of a wide variety of technology and ICT jobs.
“Expansion of 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”.
It would be recalled that the President Muhammadu Buhari had in March set up a committee to come up with a plan to address the challenges posed by the coronavirus in the country.
The report was submitted to President Thursday with ministers and other government officials in attendance.
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