Buhari unveils economic plan to combat damage of Covid-19

Nigeria’s President Muhammadu Buhari has unveiled his administration’s plan to support Nigeria’s economy post-coronavirus.

Much like many countries on the continent and around the world, Nigeria’s economy has been deeply affected by the coronavirus, as businesses have been forced to close in lockdown and the price of oil had plummeted.

In response to the looming threat of a broken economy post-pandemic, President Buhari has already established an inter-ministerial Economic Sustainability Committee. The Committee is chaired by Vice President Yemi Osinbajo and submitted its first report on the health of the economy in mid-June.

Now, President Buhari has unveiled his economic sustainability plan, based on the advice of his ministerial committee. The strategy is two-pronged, focusing primarily on job creation and injecting cash into businesses and consumers’ hands.

Targeted investments are also planned for heavy industry and manufacturing, agriculture, and information technology developers. Small to medium scale businesses can also benefit from cash transfers as well as “survival funds” to remain afloat during the post-pandemic fallout.

Critics have questioned the effectiveness of Buhari’s plan, however, suggesting that it is identical to previous economic recovery packages, notably the now-infamous Vision 2020 plan. In 2009, the Nigerian government launched Vision 2020 as a long-term economic strategy to grow Nigeria’s economy to an annual GDP of $900 billion by 2020. As of 2019, the country’s national GDP stood at $446.5 billion, half of the estimated goal.

Despite similar plans having limited success in the past, however, Nigerian financial experts say that large scale government investment in the economy is desperately needed now as the country comes out of lockdown.

Indeed, without an urgent injection of cash into the economic bloodstream, Nigeria could experience “stagflation”, a deathly combination a recession and hyperinflation. Commentators hope that President Buhari’s plan will be forceful enough to stave off such a dire fate.  

Photo: The Premium Times