As Nigeria slips into recession for the second time in five years, President Muhammadu Buhari has came about because of the severity of the global downturn caused by the COVID-19 pandemic.
He said this while declaring open the 26th Nigerian Economic Summit with the theme: “Building Partnerships for Resilience’’ in Abuja, yesterday.
The summit was organised jointly by the Nigerian Economic Summit Group (NESG) and the Ministry of Finance, Budget and National Planning.
Buhari, who was represented by Vice-President Yemi Osinbajo, said the decline in the nation’s Gross Domestic Product (GDP) came after 12 successive quarters of positive growth.
He said the downturn caused by the pandemic included lockdowns, disruption in global supply chains, business failures and rising unemployment.
“We can all recall that during the lockdown, farming did not take place, businesses were closed; schools were closed as were hotels and restaurants. Also, airlines stopped flying, while inter-state commerce was disrupted.
“The economy only began to recover when these activities resumed and if we are able to sustain the nearly three percentage point increase from the second quarter decline of minus 6.1 per cent, the performance in the fourth quarter could take us into positive territory,’’ he said.
Buhari said that it was to mitigate such impact that the Federal Government introduced the Economic Sustainability Plan (ESP).
According to him, all the programmes in the ESP are reliant on the private sector playing a key role in creating and conserving jobs and the production and delivery of services in agriculture, housing, solar power and digital technologies.
He added that the speedy pathway out of the current recession was to quicken the implementation of the ESP.
“Of course, an improvement in global economic conditions, including the restoration of global supply chains and resumption of exports and remittances, should enable a V-shaped recovery.
“We expect, in the same spirit of partnership, that the private sector will complement these efforts by making maximum use of the provisions of the ESP and the Finance Bill when it is passed by the National Assembly and also by retaining and creating jobs so as to keep people at work.
“In a similar spirit of partnership, private sector enterprises should also pay their due taxes,’’ he added.
Speaking on the theme of the summit, he said that partnerships remained essential to attract the resources for building a solid national infrastructural base.
Buhari said that as was evident when the nation was combatting COVID-19, partnerships were essential and also necessary for framing medium and long-term development plans.
He added that the government had always emphasised that the private sector had a key role to play in the efforts to build a more resilient and competitive economy as expressed in the Economic Recovery and Growth Plan.
Buhari said that private companies in design, construction, logistics and finance were very much engaged in the nation’s infrastructural projects in power and rail as well as road and bridges.
“I am pleased to inform in this regard that we are working actively with the CBN, the Nigerian Sovereign Investment Authority and state governments under the auspices of the National Economic Council to design and put in place a N15 billion Infraco Fund, which will be independently managed.
“The Infraco Fund will help to close the national infrastructural gap and provide a firm basis for increasing national economic productivity and growth,’’ he said.
Minister of Finance, Mrs Zainab Ahmed, said the current recession would be a short one, as government and key stakeholders were proactively working together to put in place sustainable measures to curtail and improve the situation.
She added that in spite of the recession, Nigeria had out-performed many economies in terms of economic growth.
Meanwhile, the Presidential Task Force (PTF) on COVID-19, has again reiterated that a second wave of the pandemic was very much likely and has therefore, advised Nigerians to suspend or postpone Christmas travels due to the risk of contracting the virus.
The Secretary to the Government of the Federation and chairman of Presidential Task Force (PTF), Boss Mustapha, gave the warning on Monday at the media briefing in Abuja.
He said: “Ahead of the upsurge in travels for the Christmas and New Year festivities, we urge strongly that for this year, such trips should be put on hold firmly because of the risks involved. The transmission rate has simply become astronomical.
“The PTF similarly finds it necessary to mention that during the Christmas and New Year festivities, large social gatherings should also be avoided because there is a bigger risk of COVID-19 transmission. New clusters of cases can emerge in places that have so far been unaffected as people travel and gather for festivities. But we can lower the risks by adhering to the NPIs (Non-Pharmaceutical measures) and celebrate, safely. There will always be many more festive seasons to celebrate.”
Mustapha noted that the developments at home and around the world particularly in the United States of America and in Europe remain major sources of concern to the PTF.
According to him, “This is particularly so because: Our risk perception is low in-country; Our compliance with Non-Pharmaceutical measures is extremely low to the extent that Nigerians now think COVID-19 is no more; the response of citizens to testing and detection is very low; the risk of importation will be higher with the opening of our airspace; and the numbers in Nigeria, though appearing low over the last two weeks, has been rising gradually.