Why FG, CBN must properly implement COVID-19 stimulus packages ― Uwaleke

TO reduce the size of the economic recession below forecast global average of -3 per cent, it is important that the COVID-19 stimulus packages both by the government and the Central Bank of Nigeria (CBN) are well targeted and executed in ways that will protect jobs and speedily reverse the present downturn in economic activities.

Professor of Finance, Uche Uwaleke of the Nassarawa State University, Keffi, who stated this in reaction to the 1.87 per cent GDP growth for first quarter of 2020 said but for the oil sector, the economy would have been worse hit by coronavirus invasion.

“It is time to expand and scale up the interventions to cover more products and states of the Federation. The IMF has projected that the Nigerian economy will tank by -3.4 per cent this year.

“It is instructive to note that while the non-oil sector with over 90 per cent contribution to GDP managed to eke out a growth rate of 1.55 per cent, the oil sector grew by 5.06 per cent.

“By extension, the growth in Q1 2020 was powered by the oil sector that contributed just 9.5 per cent of GDP.”

According to him, oil may not rescue the economy again in 2020 given that the 2020 revised budget is based on 1.94 mbpd in tune with OPEC cut agreement.

“So, the oil sector’s real GDP growth rate will be negatively impacted in 2020.

“This is the more reason much attention should be shifted to the non-oil sector especially agriculture, health, education and the enabling infrastructure such as power, roads and ICT.

“Mechanised farming will go a long way in boosting food production.

“Doing so will bring down food inflation which was over 15 per cent as of April according to the NBS. Secondly, there is no doubt that the CBN’s interventions in agriculture, especially the anchor Borrower Scheme, has helped in no small measure to grow the sector.

“On the other hand, the sectors that recorded the highest drop included road transport and accommodation/hotel industry due in part to the movement restrictions and lockdown in many towns and cities in Nigeria.

“As a matter of fact, the drop in real GDP growth rate would have been more severe but for the moderating impact of the relatively greater tempo of economic activities in the month of January.”  

 

 

YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE

Buy and read digital replicas of your TRIBUNE titles by subscribing through E-VENDING

Pantami Used Armed Officers To Evict Our Staff, Abike Dabiri Alleges
The chairman, Nigerians in the Diaspora Commission (NIDCOM), Abike Dabiri-Erewa, has alleged that the Minister of Communications and Digital Economy, Dr Isa Pantami used armed security men to eject NIDCOM from the offices which they occupied in the NCC building located at Mbora District… Read full story

Naira Set To Rally As CBN, ABCON Finalise BDCs’ Resumption Of Forex Sale
The naira is facing its greatest risk from the COVID-19 pandemic as currency speculators continue to make spurious demand for dollar with the hope of making good returns from the rising gaps between… Read full story

MONDAY LINE: Buhari’s Fifth May 29
MUHAMMADU Buhari’s first coming was from December 31, 1983 to August 27, 1985. It was a period of famine and pestilence; of queues for coins and corn and of lean liberty. His second coming will be five years old on Friday. Can he sit back and use his tongue to count his teeth? What has changed between his past… Read full story

China Tells US To Stop Wasting Time In Coronavirus Battle
The US should stop wasting time in its fight against the coronavirus and work with China to combat it, rather than spreading lies and attacking the country, the Chinese Government’s top diplomat, Wang Yi, said on Sunday. The Sino-US ties have nosedived since the outbreak of the new coronavirus… Read full story

The Continued Harassment Of Essential Workers
NOT a few Nigerians were miffed by the reports of arbitrary arrests and continued harassment of essential workers by the police immediately after the recent extension by the Federal Government of the partial lockdown and curfew imposed across the country to curtail the spread of the Covid-19 global pandemic. Initially,many thought that the police operatives were at it again, acting outside their briefs for pecuniary gain… Read full story

Subsidy Removal: Those Who Can’t Fix Refineries Should Give Way ― NLC
The Nigeria Labour Congress (NLC) has warned that the Federal Government should not talk about; or contemplate fuel price increase; even as it stated that subsidy is a cover-up for inefficiency and corrupt in the system. The NLC gave this position, as the Petroleum and Natural Gas Senior Staff Association… Read full story

The Looming Fiscal Crisis And The Wisdom Of Awolowo
In terms of financial wizardry and sheer genius in economic statecraft, the only master I bow to is the legendary sage, Chief Obafemi Awolowo. I believe he was an extraordinary statesman and an economic genius to boot. Former Head of State General Yakubu Gowon once observed: “If you know of a man greater… Read full story

COVID-19: Curfew Now 8pm To 5am In Oyo
The Oyo State COVID-19 Task Force, on Sunday, relaxed the existing curfew imposed on the state in respect of the ravaging COVID-19 pandemic to between 8 pm and 5 am. A statement by the Chief Press Secretary to Governor Seyi Makinde, Mr Taiwo Adisa, confirmed that the decision was reached at the… Read full story

Adeboye Speaks On How Coronavirus Will End, Urges Nigerians Not To Panic
The General Overseer of the Redeemed Christian Church of God (RCCG), Pastor Enoch Adejare Adeboye on Sunday said only a big miracle would make the deadly coronavirus pandemic leave the world completely. Pastor Adeboye stated this on Sunday during a live broadcast to his members on Dove… Read full story

Southeast Governors Meet In Enugu, Explain Delay In Implementation Of Zonal Security Outfit
GOVERNORS of the Southeast geo-political zone on Sunday explained why they are foot-dragging on the commencement of their zonal security outfit, saying that the Inspector-General of Police is not keeping with the agreement they reached with him… Read full story

No Rift Between Makinde And I ― Oyo Deputy Governor
Contrary to speculation of a cold war between him and his boss, Oyo State Deputy Governor, Raufu Olaniyan, has said there is no rift whatsoever. Olaniyan described the relationship between him and Governor Seyi Makinde as “robust and cordial… Read full story

Buhari Tasks Farmers On Massive Food Production, Says ‘No Money For Food Importation’
President Muhammadu Buhari has challenged Nigerian farmers on the need to embark on massive productive agricultural activities this farming season as Nigeria has no money for food importation. The president gave the challenge shortly after observing this year’s Eid prayer alongside members of… Read full story

You might also like
Comments

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. AcceptRead More