TUE, MARCH 17 2020-theG&BJournal- Professor Doyin Salami, leading a team of Presidential Economic Advisory Council (PEAC) members to the State House for a briefing session with President Muhammadu Buhari, painted sobering scenarios of what could happen to the Nigerian economy, if the COVID-19 pandemic lasted for too long, but stressed that the worst may be avoided with hard work and scrupulous implementation of policies.
PEAC made recommendations for a possible revision of the 2020 budget, priority spending on healthcare, reprioritization of expenditure on infrastructure to focus on projects nearing completion with pro-poor effects, curtailing recurrent expenditure, mobilizing the private sector to strengthen health sector infrastructure, and boosting of government revenue.
Professor Doyin Salami told the President that the consequences of not acting immediately would result in slower growth, as supply and demand sides of global economy would be affected; there will be uncertainty, which could erode confidence; government will begin to act unilaterally instead of cooperatively; there will be further drop in oil price and there will lockdowns.
He said there would also be oil glut, trade imbalance, drop in foreign reserves, and rise in unemployment.
He told the president that many countries round the world may go into recession and advocated hard work for Nigeria to keep its head above waters.
‘’Nigeria has foreseen the economic problems that may come in the wake of the COVID-19 pandemic, and will explore all alternatives to protect her people, President Buhari said in his response.
With oil prices oscillating between $29 and $30 in recent times, as opposed to the $57 benchmark for the 2020 budget, President Buhari said many variables, including production cost and political impact, determine oil prices, ‘’and we will see how to survive fallen prices, as we already envisaged the problem.’’
‘’Protecting the people from vagaries of international economic fortunes, and associated fallen prices of oil, is a priority of government, and we will do our best to do so,’’ the President added.
He promised that inputs in agriculture, education and healthcare would continue as much as practicable.
The meeting was attended by the Vice President Yemi Osinbajo.
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