FEC Approves N2.3trn Stimulus Package to Mitigate COVID-19 Risk

FG to Stimulate Growth With N2.3trn Stimulus Package

The Federal Government through the Federal Executive Council has approved the 2.3 trillion stimulus package stipulated in the Nigeria Economic Sustainability Plan put together to mitigate the negative impacts of COVID-19 on the nation’s economy.

The approval was done during a virtual council meeting presided over by President, Muhammadu Buhari, on Wednesday.

Mrs. Zainab Ahmed, the nation’s minister of finance, budget and national planning, 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.”

According to her, the move would help the government get on top of the rising youth unemployment rate, slipping foreign exchange, high inflation rate and the general plunge in business activities.

She added that the plan is also to support small businesses impacted by COVID-19 pandemic.

The approval was done on the same day the International Monetary Fund (IMF) lowered Nigeria’s growth projection from -3.4 percent to -5.4 percent in 2020.

The Nigeria Economic Sustainability Plan was put together by the committee led by Vice President Yemi Osinbajo.