Covid-19: NEC receives report on impact on economy



News Today 2

 The National Economic Council (NEC) on Thursday receives the report of the Presidential Economic Advisory Council (PEAC) on the impacts of Coronavirus disease on the Nigeria’s economy .

Gov. Abdullahi Sule of Nasarawa State revealed this to State House correspondents at the end of the monthly meeting of NEC which was presided over by Vice-President Yemi Osinbajo, at the State House, Abuja.

He said that the report indicated that before the outbreak of the coronavirus, the economic condition of Nigeria was fragile, vulnerable and deteriorating with:

“Output growth, though rising, remains weak and fragile -being outstripped by population growth almost a quarter of the economy was shrinking/contracting.’’

“The beginning of a new cycle of faster increase in prices and inflation ended the year at 11.98% impaired with 11.44% in 2018.

“Rising deficit and debt service payment increasing funded from ‘ways and means’ borrowing which leads to money supply growth.  This poses a threat to inflation and the exchange rate.’’

According to him, the report also shows how external influences drive the Nigerian economy – Trade, Capital inflows, policy diaspora transfers.

He said the report indicated that the impact of coronavirus on the Nigeria Economy would affect oil sector while stressing that both price and quantity are expected to fall.

“Both import and export will fall but it is likely that import will fall by less than export.

“Fall in import will be expected to adversely affect production input leading to fall in output and rising unemployment – this will worsen the fate of the manufacturing sector.

“While rising unemployment will weaken demand, import disruptions are also likely to raise cost and inflation.

“At a time of wide-spread uncertainty and capital flight towards safety, Nigeria should not expect the premium derived from keeping interest rates high will be adequate to keep Foreign Portfolio Investors from considering safety,’’ he added.

The governor further disclosed that the Minister of Finance, Budget and National Planning updated the Council on the balance of the Excess Crude Account as at March 17, 2020, stood at $17,220, 756; the Stabilization Account was N35, 806, 389, 699. 67 while the Natural Resources Development Fund Account was N109,360, 903,475.60 as at March 17, 2020.

He also disclosed that the Council received an update on the ownership review and the analysis of the DisCos, saying final report on the electricity reform would be circulated later.

Edited By: Ismail Abdulaziz

Short Link:

Ismaila Chafe

Ismaila Chafe: NNN is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. We are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and we strive diligently to ascertain the truth in every news report. Contact: editor @ Disclaimer.

Recent Posts

NAFDAC tasks stakeholders on drug abuse eradication FG set to facilitate provision of Assistive Technologies for PWDs ICPC calls for strict law enforcement to tackle corruption Buhari inaugurates steering committee on poverty reduction U.S. varsities admit about 13,000 Nigerians yearly Event planner faces N4.3m fraud charge Excessive exposure to social media risk factor for depression, suicide — Neuropsychiatrist FG assures of safe release of Birnin-Yauri students Install safety valves to reduce explosions, FRSC urges tanker owners Osinbajo lauds Abuja MSMEs over job creation FG insists Twitter ban is in Nigeria’s interest APC Group mobilises support for military Access Bank unveils Womenpreneur Pitch-a-ton Season 3 Breaking the cycle of neglect: the powerful impact of eliminating worms. Qatar Airways will operate double daily flights to Lagos AMCOW launches African Sanitation Policy Guidelines Character Assassination: Seven Action Points Required Mastercard Foundation Appoints Robin Washington to Board of Directors The cloud as a tool to create certainty Role of media in achieving migration goals crucial – IOM BitDAO will save 230 million dollars to launch two major DAOs in the world Thales appoints Gregory Ligny vice president for Africa Flood: Okowa appeals to Warri/Effurun residents for patience Row over plans for new royal yacht in Britain European shares set to follow Wall Street higher on Tuesday Troops arrest suspected bandit in possession of military kits – Army Ogun Govt. identifies data as tool for proper health planning Philippine leader threatens jail for those who refuse vaccine jabs Re-appointment of Guterres, a vote of confidence – UN deputy chief Brazil: Officer convicted for crimes under military dictatorship Philippines’ Duterte lashes out at ICC over drug war probe Almost 11,000 migrants waiting for visas to join family in Germany Grave violations against children in conflict remain ‘alarmingly high’- UN Insurgency: Zulum urges resumption of Naval operations in Baga NYSC organises free medical outreach for Lagos residents NYSC medical outreach benefits 2m Nigerians — DG Chadian activist seeks Nigeria’s support to restore peace in his country Osinbajo rallies youths on active engagement in politics LASG gives 3-day ultimatum to property owners encroaching on canals Patricide: We’ll rely on advice from DPP – Police We are supporting states to intensify cholera outbreak response – NCDC By Abujah Racheal Widow of slain Oyo journalist wants killers brought to justice Buhari appoints Ekpungu EFCC Secretary, names board members Gunmen kill ATM customer in Ibadan Makinde inaugurates Oyo Security Network board, Amotekun corps Nigerian army dismisses video of soldiers mutilating suspect Anambra 2021: PDP NWC meets stakeholders, sues for unity FG pays N10b to 1m beneficiaries every 2 months -Coordinator COVID-19: Union urges Nigerians in S/Africa to obey new lockdown rules COVID-19: World Bank, AU partner to support vaccination for 400m Africans