The Vice President of Nigeria Yemi Osinbajo has said that Unemployment may rise to 33.6% or about 39.4 million people by the end of 2020, if we fail to take prompt preemptive measures; provided by economic sustainability plan after COVID-19.
In a statement to the president Muhammadu Buhari on the occasion of the presentation of the economic sustainability plan the Vice President said that millions more will fall extreme Poverty, before the pandemic ends;
The Vice President noted that the inevitable mandatory lockdowns and social distancing measures put in place to curb the spread of COVID-19 have had a severe negative impact on farms and factories, as well as on trade, transport and tourism. Several projections, including those done by the NBS on behalf of the Economic Sustainability Committee, showed:
(i) a severe downturn in our oil earnings, as a result of which, even with oil price at 30 dollars 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;
(ii) that Unemployment may rise to 33.6% or about 39.4 million people by the end of 2020, if we fail to take prompt preemptive measures;
(iii) that millions more will fall extreme Poverty, before the pandemic ends;
(iv) 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.
He therefore made the following recommendations to enable the government sustain the economic as Covid-19 deepens.
According to the Vice President to create millions of new jobs, we need to focus on encouraging local production, local services, local innovation, and emphasize the use of local materials.
“Nigeria and Nigerians can produce our food, build our houses and construct our roads, using local materials in all cases. If we must import, it must be to support local production.
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. He said
In his recommendation he said that Installation of Solar Home System, targetting 5 million households, serving about 25 million individual Nigerians who are currently not connected to the National Grid.
“We have also recommended support for local production and manufacturing of all that is possible, including tech apps, software, shoes, garments, steel fabrication, ceramics and furniture, with the required capital and essential machinery.
The provision of ample support for the informal sector through low interest loans and by easing procedures for registration, licensing, obtaining permits, etc. By these means, urban and informal business people like mechanics, tailors, artisans, and petty traders, will be encouraged to improve and develop their services.” The Vice President said