The Federal Executive Council (FEC) has approved the N2.3 trillion stimulus recommended by the Nigerian Economic Sustainability Plan (NESP).
The plan will support the Nigerian Economy in the face of the disruptions and challenges of the Covid-19 Pandemic.
The media aide to the Presidency, Tolu Ogunlesi announced the goals of the NESP which is to, “create jobs, put money into the economy, hopefully, stop it from slipping into recession, support small businesses and prioritize local content”.
“The NESP is a 12 Month ‘transit’ plan between the ERGP and the ERGP-Successor-Plan currently being worked on,” he added.
The Minister of Finance, Zainab Ahmed announced that N500 billion of the stimulus package has been provided in the amended 2020 Appropriation Act and would be funded from special accounts.
“We also have N1.2 trillion of this fund to be sourced as structured low- cost loans, which are interventions from the Central Bank of Nigeria as well as other development parties and Institutions”.
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“ We have N344 billion that will be sourced from Bilateral and external sources and also additional funds that we can source locally,” Ahmed said.
Ogunlesi also disclosed that the NESP was chaired by Vice President Yemi Osinbajo, and made up of Cabinet Ministers holding consultative meetings with the State Governors, EAC and National Assembly.
Yemi Osinbajo’s Sustainability Committee recommended that the Stimulus be funded through a CBN “structured lending” of N1.1 trillion, N302.9 billion from other funding and N500 billion from special accounts.
The plan also recommended the creation of over 10 million jobs in a 12 months period through a food for all projects hiring 5 million people which will cost N635 billion.
Mass Housing strategy creating 1.8 million jobs, Solar Power strategy expected to create 250,000 jobs, Digital Economy strategy to create 1 million jobs for outsourcing, National gas Expansion Programme to support the creation of 1 million jobs, have all been initiated.
Added to the list is a Road Construction and rehabilitation is projected to create 296,000 jobs in the 6 geo-political zones and a plan to create 774,000 jobs for youths and women post COVID-19.
BREAKING: The Nigeria Economic Sustainability Plan (NESP) has today been approved by the Federal Executive Council (FEC).
It’s a 2.3 Trillion Naira stimulus plan to support the Nigerian economy in the face of the disruptions and challenges of the Covid-19 pandemic.
— tolu ogunlesi (@toluogunlesi) June 24, 2020
Insecurity: FG to implement town hall meetings to reach a national consensus
The meetings are set to address the twin issues of insecurity and its concomitant effect on national unity and cohesion.
The Federal Government announced the launch of town hall meetings to address the twin issues of insecurity and its concomitant effect on national unity and cohesion.
This was disclosed by the Minister of Information, Lai Mohammed, at the Town Hall Meeting in Kaduna on Thursday, themed “Setting Benchmarks for Enhanced Security and National Unity in Nigeria.”
What the Minister is saying
“The correct starting point towards addressing these myriads of problems is the building of an “elite consensus” on the security, unity, indissolubility, and peaceful existence of Nigeria.
“Such elite consensus had worked in the past. Can we make it work now and proffer solutions in order to stave off the threats to our unity as a nation?” he said.
The Minister disclosed that the meetings are necessary to bring all critical stakeholders together to deliberate on the issues and possibly reach a consensus on the way forward.
“We expect this Town Hall meeting to develop concrete, implementable resolutions because a lot of talks and postulations had taken place with little or no requisite outcome.”
In case you missed it
- Former Vice President, Atiku Abubakar warned that the rising insecurity in Nigeria is a result of rising youth unemployment. He urged Nigeria to tackle out-of-school children cases, pay a monthly stipend to poorer families, incorporate youths who are above school age into massive public works programmes and others.
- Senator Ali Ndume insisted that the Federal Government needs to increase its total military spending to be able to tackle the rising insecurity in Nigeria which has seen a number of school students in 2021 kidnapped by bandits.
IMF lifts 2021 global GDP growth to 6%
The group also warned that economic recoveries are diverging dangerously across and within countries.
The International Monetary Fund has lifted its global growth outlook to 6% in 2021 (0.5% point upgrade) and 4.4% in 2022 (0.2 percentage point upgrade), after an estimated historic contraction of -3.3% in 2020 due to the effects of the COVID-19 pandemic. This disclosure was made on the organisation’s website on Tuesday.
The group also warned that economic recoveries are diverging dangerously across and within countries, as economies with slower vaccine rollout, more limited policy support, and more reliance on tourism do less well.
What the IMF is saying
“The upgrades in global growth for 2021 and 2022 are mainly due to upgrades for advanced economies, particularly to a sizeable upgrade for the United States (1.3 percentage points) that is expected to grow at 6.4 percent this year.
This makes the United States the only large economy projected to surpass the level of GDP it was forecast to have in 2022 in the absence of this pandemic.
China is projected to grow this year at 8.4 percent. While China’s economy had already returned to pre-pandemic GDP in 2020, many other countries are not expected to do so until 2023.”
On divergent recoveries
The IMF stated that divergent recovery paths are likely to create wider gaps in living standards across countries compared to pre-pandemic expectations.
“The average annual loss in per capita GDP over 2020–24, relative to pre-pandemic forecasts, is projected to be 5.7 percent in low-income countries and 4.7 percent in emerging markets, while in advanced economies the losses are expected to be smaller at 2.3 percent,” they said.
“Faster progress with vaccinations can uplift the forecast, while a more prolonged pandemic with virus variants that evade vaccines can lead to a sharp downgrade. Multispeed recoveries could pose financial risks if interest rates in the United States rise further in unexpected ways.“
For Africa, IMF forecasts economic growth of 3.4% in 2021 and 4% by 2022, Nigeria is expected to grow by 2.5% in 2021 and 2.3% by 2022, while South Africa is projected to hit growths of 3.1% and 2.0% for the respective years in focus.
In case you missed it
The International Monetary Fund (IMF) identified some factors that hamper the economic recovery of low-income countries from the devastating impact of the coronavirus pandemic, factors including access to vaccines, limited policy space to respond to the crisis, the lack of means for extra spending, pre-existing vulnerabilities such as high levels of public debt in many low-income countries and sometimes weak, negative, total factor productivity performance in some low-income countries. These factors continue to act as a drag on growth.
Nairametrics | Company Earnings
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- Friesland Campina Wamco Nigeria Plc announces AGM, proposes dividend of N6.74 per share.
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- Cornerstone Insurance Plc notifies stakeholders of late submission of financial statements.