Nigeria’s revenue slumps 40% due to impact of Covid-19 ~VP Osinbajo
Nigeria said its revenue fell by over 40 percent due to the impact of the coronavirus on the economy following disruptions in the supply chains as the government lockdown activities to contain the spread of the dreaded disease, Vice President Yemi Osinbajo said on Tuesday.
Osinbajo spoke at a Webinar organised by the Commonwealth Enterprise and Investment Council, CWEIC, with its focus on Nigeria.
“It seemed the sun was beginning to shine quite brightly after the years of recession and its immediate aftermath. Then came COVID-19 possibly the worst economic crisis the world has seen. For us in Nigeria, it was a perfect storm for oil prices, Russia and Saudi Arabia choosing that very moment for a price war.
“Then the inevitable lockdowns resulting in closure of businesses, our huge informal economy all but crashed and Government revenues fell too by over 40 percent,” the Vice President said.
He, however, said with the stimulus packaged of N2.3 trillion planned by the government to intervene in the economy, it is expected that the country may get away with a mild recession.
“Taking into account our economic size and fiscal limitations, we have put together a stimulus package of N2.3trillion, which is just over 1.5% of national income. If other factors like the price of oil and length of the COVID-19 pandemic do not worsen further, these interventions should ameliorate the situation with a mild recession expected of minus 0.59 percent.”
“We have taken the opportunity to remove petrol subsidies and to insist that power distribution companies must engage with customers to ensure that new tariffs are based only on improved power supply. We are talking of service reflective tariffs,” the Vice President said.
The Vice President revealed some of the planned interventions to stir the economy away from recession as jobs for Food which is an agricultural programme aimed at expanding the acreage under cultivation across the country.
He said the over proposed to create hundreds of thousands of jobs and also intend to guarantee uptake processors, aggregators and to some extent, by government.
“We also have a Jobs through Homes programme which is a programme to provide jobs and increase our national housing stock, at the same time by a massive social housing programme where we intend to engage young professionals and artisans who are involved at the moment, in small businesses, building and using local products such as cements, doors, tiles, windows and paint.”