FG Explores More Options To Stimulate Economy Amidst COVID-19

The Federal Government is currently exploring more policy options to stimulate the economy which had been badly affected by the negative impact of Coronavirus pandemic.

The Minister of State for Budget and National Planning, Prince Clem Agba who disclosed this on Tuesday charged State Commissioners of economic planning to explore additional policy options for a quick recovery of the economy amidst the COVID-19 pandemic.

He said the focus should be on targeted and integrated policy response as well as dealing decisively with public health safety issues.

The minister said consideration should given to a new 2020 budget across the states to reflect the new economic realities.

Speaking at the opening session of a meeting of Commissioners of Economic Planning, Agba further tasked them to develop sectorial responses that addresses immediate needs.

He said this would help to ensure that households and small bisinesses are catered for and forestall significant decline in consumer demand and business spending. 

Agba stated that the economy may contract by 4.4 per cent and 8.9 per cent in best and worst case scenarios respectively if no form of economic stimulus is introduced by the government  

He, however, noted that the Federal Government had moved to prevent a potential deep recession and to accelerate quick recovery of the economy  by developing three broad strategies.

They are economic stimulus package, mobilisation of external support and funding for the 2020 budget as well as increase non oil revenue generation.

He said rather than implement some austerity measures to respond to the challenges posed by the COVID-19 pandemic, the present administration is committed to stimulating the economy to quicken its recovery.

The minister said the current intervention by the government is geared towards retaining and creating jobs, increasing productivity, ensuring social stability and addressing economic vulnerabilities as envisaged in the Economic Recovery and Growth Plan.

He expressed satisfaction at the Federal Government’s total estimated stimulus package of N2.3trn which was recently approved by the Federal Executive Council.

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

He said many states have also embarked on aggressive diversification of their revenue base to reduce dependence on diminishing allocations from the federation account.