COVID-19: FG Announces N2.3trn Stimulus Package to Support Economy
Finance Minister
The federal government has announced the sum of N2.3 trillion as stimulus package to support the nation’s economy in view of disruption occasioned by the coronavirus pandemic.
The amount was approved Wednesday during the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari.
Minister of Finance, Budget and National Planning, Zainab Ahmed, who briefed newsmen in Abuja said the fund was part of the Nigeria Economic Sustainability Plan (NESP) package which had earlier been recommended by the committee led by Vice President Yemi Osinbajo.
She explained that the idea was to create more jobs, inject money into the economy and ensure that the economy does not slip into recession.
The fund is also meant to support small businesses with priorities given to made in Nigeria products.
She was quoted saying, “The total package that we presented today is in the sum of N2.3 trillion, N500 billion of this is a stimulus package that is already provided for in the amended 2020 Appropriations Act. These are funds that 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 the 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 lock down. Specially, the hotel (hospitality) industry, private schools, restaurants as well as the transport sector have been very well 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 standstill that we witnessed as a result of lockdowns.’’
The amount was approved Wednesday during the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari.
Minister of Finance, Budget and National Planning, Zainab Ahmed, who briefed newsmen in Abuja said the fund was part of the Nigeria Economic Sustainability Plan (NESP) package which had earlier been recommended by the committee led by Vice President Yemi Osinbajo.
She explained that the idea was to create more jobs, inject money into the economy and ensure that the economy does not slip into recession.
The fund is also meant to support small businesses with priorities given to made in Nigeria products.
She was quoted saying, “The total package that we presented today is in the sum of N2.3 trillion, N500 billion of this is a stimulus package that is already provided for in the amended 2020 Appropriations Act. These are funds that 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 the 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 lock down. Specially, the hotel (hospitality) industry, private schools, restaurants as well as the transport sector have been very well 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 standstill that we witnessed as a result of lockdowns.’’
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