The minister of finance, budget and national planning, Mrs. Zainab Ahmed has said that the net oil and gas revenue inflows to the federation account in Q1 2020 amounted to N940.91 billion, representing a shortfall of N425.52 billion (or 31.1 per cent of the pro rata amount.
The minister stated this at the virtual meeting of the National Economic Council (NEC) held yesterday and chaired by the vice president, Prof Yemi Osinbajo with the 36 state governors, the FCT minister, governor of the Central Bank of Nigeria and other top federal government officials in attendance.
She said the coronavirus disease had resulted in the collapse in oil prices, stressing that it will further impact negatively on federation revenues and foreign exchange earnings.
The minister said Nigeria “is faced with perhaps the most challenging economic challenge in its history adding that global economy “is also facing its sharpest reversal since the great depression and these have health and economic implications.
To prevent a deep recession arising from the COVID-19 economic crisis, Ahmed said “the orthodox approach all over the world, which is also in the works in Nigeria, is to deploy a stimulus package.”
The minister also updated the council on the excess crude account which she said stood at $72, 406, 791.52 as of May 21, 2020; stabilization account, N39, 337,123,485.30 (as of May 21, 2020) and natural resources development fund account, N125, 190,251,907.47 (as of May 21, 2020
NEC members resolved to ensure a more effective synergy between the federal government and the sub-nationals especially in matters related to the fallouts of the COVID-19 pandemic, including how to effectively and efficiently reopen the Nigerian economy after the lockdowns and shutdowns across the country.
It also set up a lean committee of seven to work with the Presidential Task Force on COVID-19.
The committee is led by the governor of Delta State, Dr. Ifeanyi Okowa, with the governors of Lagos, Kano, Bauchi, Anambra, Plateau, and the FCT minister as members.
“The committee will ensure that there would be an even more effective collaboration and coordination between the Federal Government’s Presidential Task Force and the states of the federation including the FCT,” said Osinbajo.
Besides, NEC resolved to cooperate with the Economic Sustainability Committee (ESC) set up by the president and chaired by the vice president in the development of a national economic sustainability plan.
The plan is expected to introduce a substantial stimulus package running into a couple trillion naira, ensure that Nigeria as a country gets through the COVID-19 economic challenges and in fact chart a path of growth and development for the Nigerian economy by ensuring massive productivity in several sectors including agriculture, power, infrastructure, technology and several others.
