Coronavirus: FG to inject N2trillion in Nigerian economy

By editor on May 6, 2020

Share on facebook Yahoo mail icon Gmail icon

Views: 690

President Muhammadu Buhari

With the coronavirus pandemic rapidly ravaging the global economy, the Federal Government is planning to inject N2 trillion as an intervention in the economy, the Minister of State for Budget and National Planning, Clem Agba, has said.

He also said the government would support airlines as the aviation sector loses N21 billion monthly, due to the pandemic.

According to Thisday, Mr Agba disclosed this at a webinar Tuesday. He said the Economic Sustainability Committee has outlined five broad policy objectives with which to deal with the challenges.

“All in all, when everything is put together, both government funding and the funds we are expected to get from the Central Bank of Nigeria (CBN), Banks of Industry and other multilateral agencies and grants that we are receiving, we expect to get a stimulus of about N2 trillion going into the economy.

“We are also looking at how to support the Aviation sector. Like you know, a lot of planes are parked and this is causing almost N21 billion (loss) on a monthly basis. We are looking at how to provide some form of bailout support to ensure that the industry doesn’t die.

“Of the $2.5 billion facilities from the World Bank, about $1 billion of it will be going to the states as loans. These are concessionary loans. MrPresident has already approved N850 billion loan from the domestic capital market” he was quoted as saying

He also said the president has approved that $150 million be taken from the Sovereign Wealth Account, in support of the Federal Account Allocation Committee.

The Central Bank of Nigeria has earlier announced the cuts in interest rate and provision of N50billion credit in its first set of policies to cushion the negative impact of the deadly coronavirus on Nigerian businesses and economy.

The apex bank later injected N1 trillion intervention in all critical sectors of the economy.


Toll on businesses

Since the outbreak of the coronavirus in Wuhan, China, the global economy has been disrupted and shaken downwards.

There have been massive disruptions in supply chains, cancellations of international and local flights and most economic activities have been put on standstill.

Nigeria and other resource-dependent countries appear to be the worst hit, with the virus driving crude oil prices at the international market below approved benchmarks and estimates in Nigeria’s 2020 federal budget.

After adjusting the approved benchmark from $57 per barrel to $30 per barrel, the Minister of Finance, Budget and National Planning, Zainab Ahmed, on Tuesday, disclosed the plan of the federal government to further adjust the benchmark crude oil price in the 2020 budget down to $20 per barrel

“We are in the process of another adjustment that will see us bringing down the revenue indicator (crude oil benchmark) to $20 per barrel,” she said.


Source premium times

Posted on May, 6 2020

Share on facebook Yahoo mail icon Gmail icon

You may also like...

Nigerians hail FG’s Stakeholders’ Forum on Haulage Business,...

‘Gov. Abubakar has Changed the Narrative in Bauchi...
Just In Nigeria records $2.9bn in annual oil and gas exports in November Why we banned cryptocurrency transactions – CBN Banning Cryptocurrency Transactions is not Right - Kingsley Moghalu CORONAVIRUS: Nigeria Records Lowest Daily Cases Since December 2020. Registration: Ex-APC chairman Odigie-Oyegun disagrees with Tinubu, Akande Ex-Service chiefs: Association backs Buhari over nomination COVID-19: Some international passengers presenting fake results – PTF Edo/Ondo Polls: Electoral offenders to face visa ban, asset forfeiture—UK Buhari unveils 60th anniversary logo, presides over 15th virtual FEC meeting. Buhari swears in 12 new Permanent Secretaries (FULL LIST)


Most Read How Alison-Madueke Allegedly Paid Ex-Minister Akinjide, Others N650 Million – Witness (5,975 views) ‘More to unfold after Lawal Daura’s sack’, hints top Buhari aide, as new DSS boss moves to re-position agency (5,768 views) Kebbi Gov 2019: Who is Afraid of DCG Ibrahim Mohammed Mera? (3,290 views) How Chief of Defence Staff, General AG Olonisakin Has Actualized President Muhammadu Buhari’s vision of a Combat-Ready Armed Forces of Nigeria (3,212 views) Malami, Justice and Order under President Muhammadu Buhari (2,488 views) Sympathizers shocked as ex- IG of Police, Gambo Jimeta, bursts into laughter over his rumoured death (2,362 views) Uproar as Dikko, Minimah, Amosun top FG's updated 'looters' list (2,066 views) Looters’ list: FG after me for refusing to join APC – Former Niger Gov, Aliyu (1,977 views) FG Inaugurates Board Chairmen, Members February 27 (1,955 views) Igbos spend unnecessary money on burials - Peter Obi (1,897 views)


SECTIONS Crime (4) Discovery (1) Economy (4) Editorial (2) Foreign Files (3) Governance (15) Nation (31) Oil and Gas (1) Opinion (4) People and Power (2) Politics (15) Security (16) Sports (2)