Three days ago, the executive arm of government held urgent meeting with the leadership of the National Assembly for N500billion appropriation as intervention fund against the scourge of Coronavirus in the country. Taiye Odewale reports.
Why another request for stimulus package
Aside being deadly danger to humanity as a whole, going by increasing number of human lives being consumed on daily basis in some of the 180 countries is currently ravaging across the world, Coronavirus is also killing the economies of the affected nations in one way or the other.
Ironically, most of the countries the virus has turned into killing fields required economy absorbers to cater for the well being of people not yet affected as well as responding rapidly and efficiently to those affected are there, while such absorbers are not available in countries where the virus is less potent, strongly indicating divine intervention from the Almighty God for those countries like Nigeria and some other African nations.
However, while divine intervention through hot climatic condition , is helping out countries like Nigeria and others from high mortality rate of COVID 19, such insulation is not available for their fledgling economies particularly Nigeria that had been running a mono- product economy over the decades without diversification in practical terms.
Effect on oil production, sales
Specifically, the effect of the scourge on the mono – product Nigeria economy has been felt right from February this year when price of crude oil in the International market started dropping to the point of getting below the $57 per barrel projected as oil price benchmark mark for implementation of the N10.5trillion 2020 budget.
After dropping to as low as $22 per barrel last month, the price of oil in the international market is currently hovering at between $30 and $34 per barrel; thus indicating $23 to $27 loss per barrel.
While in addressing that, the economic team of the executive arm of the federal government about three weeks ago, met and cut the budget size by N1.5 trillion through reduction of the oil price benchmark to $30 per barrel from $57 per barrel passed by the National Assembly. The team said the money urgently required to fight the scourge is not yet available due to dwindling revenues at all fronts as a result of partial shutdown of the economy.
The very reason the federal government through the Minister of Finance , Mrs Zainab Ahmed, rushed to the leadership of the National Assembly last Saturday to intimate them of the need for urgent approval of N500billion as an intervention fund to be sourced from loans and mopping up of available resources.
The finance minister at the meeting held at the Senate wing of the National Assembly said the request is an executive one, requiring expeditious consideration when formally presented by the presidency. Her words: “What we are proposing is an establishment of a N500 billion COVID-19 Crisis Intervention Fund.
“This fund that we are proposing, will involve mopping up resources from various special accounts that the government as well as the federation have.
“In addition to the identified special accounts from where the money will be drawn as loans, the proposed intervention fund is also expected to be sourced from grants being expected and loans from multilateral Institutions.
“Our general view is that this crisis intervention fund is to be utilised to upgrade healthcare facilities as earlier identified.
“The federal government also needs to be in a position to improve health care facilities not only in the states but to provide intervention to the states.
“The fund, if approved, will also take care of special Public Work Programmes currently being implemented by the National Directorate of Employment (NDE).
“In the light of this, there will be a need for the parliament to agree and approve the taking of loans from these special accounts and we will be coming back with a proposed bill in that regards that will define what the fund will be used for”.
Earlier in his remarks, the Senate President, Ahmad Lawan, who doubles as the chairman of the National Assembly, said the meeting was in fulfillment of an earlier promise to provide support as the need arises in this time of crisis.
He said: “Just like we told Nigerians, when there is need for us to meet or to take legislative action in support of ensuring that the government responds appropriately to developments issues and challenges in the country, we will do so.
“This meeting, the second in the series after we shut down the National Assembly for two weeks, is a clear testimony of what we have said.
“The governance requires that we work together, so we want to listen to those things that you have on your side and how we can also play our constitutional role in ensuring that Nigerians continue to benefit from governance and how we are able to weather the storm created by COVID-19.
“Going forward, we need to interact more because very fundamental decisions will need to be taken, and these decisions can only be said to be constitutionally legal if the legislature gives its stamp of authority for the executive to implement and execute.
“I think coming to us for those loans is critical because we are in an emergency and time is of essence. So, we must work as expeditiously as possible to ensure that we place the request before the National Assembly.
“I think time has come for us to redefine the implementation of the Social Intervention Programme, probably going out to communities to give them N20, 000 per person might not be the best way to go. It is still an effort, but I think we need a better approach that will be more efficient.”
The meeting was a follow-up to one held penultimate Wednesday between the National Assembly leadership and members of the Presidential Committee which was set up for the management of the COVID-19 crisis.
With the Finance Minister at the meeting, were senior officials from her ministry, while the Senate President, Ahmad Lawan, and the Speaker of the House of Representatives , Hon Femi Gbajabiamila , also had their deputies and principal officers from both Chambers in attendance.
