Weekly Economic and Financial Commentary – June 15, 2020
The FGN in response to challenges posed by Covid-19 pandemic, released a plan to reposition the economy in a document titled the Nigeria Economic Sustainability Plan (NESP). The first pillar of NESP is Real Sector Measures d comprises a mix of project and policy approaches, which focus on the creation of jobs. The second pillar is Fiscal and Monetary Measures which outlines steps that will be taken to maximise government revenue, optimise expenditure and enshrine a regime of prudence with an emphasis on achieving value for money. Key objective of NESP are:
1) To stimulate the economy by preventing business collapse and ensuring liquidity;
2) retain or create jobs using labour intensive methods in key areas like agriculture, facility maintenance, housing and direct labour interventions;
3) undertake growth enhancing and job creating infrastructural investments in roads, bridges, solar power, and communications technologies;
4) promote manufacturing and local production at all levels and advocate the use of Made in Nigeria goods and services, as a way of creating job opportunities, achieving self-sufficiency in critical sectors of our economy and curbing unnecessary demand for foreign exchange which might put pressure on the exchange rate; and
5) extend protection to the very poor and other vulnerable groups – including women and persons living with disabilities – through pro-poor spending.
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