Federal Executive Council Okays N2.3tn Stimulus Plan

The proposed N2.3 trillion stimulus plan by the Nigeria Economic Sustainability Plan designed to support the nation’s economy in the face of the disruptions and challenges of the COVID-19 pandemic has been approved by the Federal Executive Council on Wednesday.The plan was designed by a committee led by Vice-President, Yemi Osinbajo.

The approval was given at a virtual meeting of the council presided over by the President, Major General Muhammadu Buhari (retd.).

The Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed this to State House correspondents at the end of the meeting.

She said, “The total package that we presented today is in the sum of N2.3tn; N500bn of this is a stimulus package that is already provided for in the amended 2020 Appropriation Act. These are funds that we have sourced from special accounts.

“We also have N1.2tn 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 partners and institutions.

“We have N344bn that will be sourced from bilateral and external sources and also additional funds that we can source locally.”

The minister said the plan was meant to enable the government to respond to the triple problems of low exchange rate, youth unemployment as well as negative growth facing the country.

She added that the plan was also meant to support small businesses that had suffered severe impact of COVID-19 as a result of lock down.

She listed the hotel industry, private schools, restaurants as well as the transport sector as some of those that had been severely impacted.

Contracts totaling about N137bn were awarded at the FEC meeting.

The contracts included those of roads across the country and erosion control in some parts of Nigeria.

The Minister of Works and Housing, Babatunde Fashola; and the Minister of Information and Culture, Lai Mohammed, disclosed this to State House correspondents at the end of the meeting. Fashola said seven projects worth N122.280 billion were approved at the meeting.

 

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