President Mohammadu Buhari revealed that Nigeria’s economy which has been predicted to go into relapse this quarter will bounce back next year.
The President raised the hopes of Nigerians when he made this known while presenting the 2021 fiscal year budget to a joint session of the National Assembly on Thursday, October 7, 2020.
The 2021 appropriation bill, which was estimated at N13.08 trillion was titled ‘Budget of Economic Recovery and Resilience’
The President in his statement said, ‘The Nigerian economy is currently facing serious challenges, with the macroeconomic environment being significantly disrupted by the Coronavirus Pandemic.’
‘Real Gross Domestic Product (‘GDP’) growth declined by 6.1 per cent in the second quarter of 2020’
‘This ended the three-year trend of positive, but modest, real GDP growth recorded since the second quarter of 2017.’
He said, ‘I am glad to note that through our collective efforts, our economy performed relatively better than that of many other developed and emerging economies.’
The President disclosed that the economy may slip because the ‘GDP growth is projected to be negative in the third quarter of this year. As such, our economy may relapse into the second recession in four years, with significant adverse consequences’
However, he said, ‘We are working assiduously to ensure a rapid recovery in 2021. We remain committed to implementing programmes to lift 100 million Nigerians out of poverty over the next 10 years.’
He also added that liquidity of the economy will be boosted with the withdrawal of subsidy and the reforms of the electricity sector.
He said, ‘The new petrol pricing regime has freed up resources that were allocated to subsidise petroleum products. Similarly, the ongoing IPPIS verification exercise has closed gaps that encourage ghost workers or pensioners. The service reflective electricity tariffs will help resolve the liquidity crisis in the power sector and make the sector attractive to foreign investment.’
He stated that, since skills’ deficits limit employment opportunities in the formal economy, various skills’ development programmes are being implemented simultaneously to address the problem frontally.
‘For instance, the Government is implementing the Special Public Works programme to provide employment opportunities to 774,000 youths across the 774 local government areas of Nigeria.’
‘We have also recently introduced the N25 billion Nigeria Youth Investment Fund.’
‘We thank all Nigerians, for your perseverance and continued support during these difficult times. We remain unwavering in our commitment to actualise our vision of a bright future for everyone.’
Photo Credit: Legit
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