Vice President, Yemi Osinbajo
on Thursday said the economic sustainability committee had received projections
that the number of unemployed people may rise to
39.4 million by the end of
2020 if the government does not take prompt measures to prevent it.
Osinbajo during the presentation of the
committee’s report to President Muhammadu Buhari, said the National Bureau of
Statistics also projected that the country would have a revenue shortfall of
N185 billion monthly with oil prices at $30 a barrel.
The committee was saddled with the responsibility of developing a credible
sustainability plan for repositioning the Nigerian economy pre and post
COVID-19 crisis period.
“Several projections,
including those done by the NBS on behalf of the economic sustainability
committee, showed a severe downturn in our oil earnings, as a result of which,
even with oil price at $30 a barrel, we would still have a shortfall of about
N185 billion every month, in the amount available for allocation to the three
tiers of government.
“That unemployment may rise to 33.6 percent or about 39.4
million people by the end of 2020 if we fail to take prompt preemptive
measures; that millions more will fall extreme poverty before the pandemic
ends; that GDP may fall to between minus 4.40% and minus 8.91%, depending on
the length of the lockdown period and strength of our economic response.”
Osinbajo said the
committee decided to focus on encouraging local production and innovation while
emphasising the use of local materials.
“We have therefore
recommended that we must carry out mass programmes that create jobs and utilise
local materials. Such will include a mass agricultural programme, which is
expected to bring between 20,000 and 100,000 hectares of new farmland under
cultivation in every state of the federation and create millions of direct and
indirect job opportunities.
“Extensive public
works and road construction programme focusing on both major and rural roads
and using locally available materials like limestone, cement and granite.
“Mass housing
programme to deliver up to 300,000 homes annually, engaging young professionals
and artisans who form themselves into small and medium scale businesses within
the construction industry, using indigenous labour and materials.
“Installation of solar
home system, targeting five million households, serving about 25 million
individual Nigerians who are currently not connected to the national grid.
“The provision of
ample support for the informal sector through low-interest loans and by easing
procedures for registration, licensing, obtaining permits, etc.”
To ensure proper
implementation, the committee recommended that ministers be responsible for
supervising implementation in their ministries.
In his remarks, Buhari
commended Nigerians for adapting to the realities of the pandemic.
“This has been a
trying time for those in the informal sector, which constitutes a large part of
our economy, important family celebrations were held without the presence of
loved ones, schools are closed and parents have had to resort to homeschooling
in addition to juggling other responsibilities.
“Despite all these,
Nigerians have done their best and persevered. I must salute Nigerians for
their resilience in adapting to the realities of the COVID-19 effect while also
recognising the superhuman effort of our frontline health workers.”
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