Buhari Reacts To "Insensitive" Policies, As Nigeria's Revenue Falls By 60%

Nigeria's revenue is now down by 60 percent, while foreign exchange earnings have fallen drastically. This has weighed heavily on Nigeria's economy, affecting the Federal Government's capability to pay salaries and disburse funds for capital projects.

This was revealed by Vice President, Yemi Osinbajo, who spoke on behalf of President Muhammadu Buhari at the first-year Ministerial performance review retreat held in Abuja yesterday, Monday, September 7, 2020.

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At the event, Osinbajo said the COVID-19 era has been a trying period for the administration, as the government has to sustain the expenditures despite a drastic fall in revenue. AllNews had reported that Nigeria's economy came to a standstill after the President declared a nationwide lockdown due to the outbreak of COVID-19 in the country.

Buhari's Economic Plan Unable To Prevent COVID-19 Onslaught

While speaking about the current state of Nigeria's economy and revenue, Osinbajo said N2.3 trillion economic sustainability plan was adopted by Buhari's administration in order to mitigate the economic downturn caused by the COVID-19.

However, the government has struggled to withstand the economic implications of the pandemic and lockdown. Already, Nigeria's economy contracted by -6.1% in the second quarter of 2020, and the economy is expected to contract again in the third quarter, leading to a recession.

While delivering Buhari's statement, Osinbajo said, “For the government, it has been a particularly trying time. As a result of the poor fortunes of the oil sector, our revenues and foreign exchange earnings have fallen drastically. Our revenues have fallen by almost 60 percent.

“Yet we have had to sustain expenditures, especially on salaries and capital projects, in order to keep the economy going. But we have also had to make some difficult decisions to stop unsustainable practices that were weighing the economy down."

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Increased Prices Of Fuel, Electricity Won't Create Hardship

President Buhari stated that the government's decision to increase prices of fuel and electricity was not to inflict hardship on Nigerians. He said his administration has disbursed funds through the Central Bank of Nigeria (CBN) to the healthcare and manufacturing sectors.

“This government is not insensitive to the condition of our people and the very difficult economic situation and we will not inflict hardship on our people. In this regard, the Central Bank of Nigeria (CBN) has created credit facilities (of up to N100B) for the Healthcare (N100 Billion) and Manufacturing (N1 Trillion) sectors. 

“From January 2020 to date, over N191.87B has already been disbursed for 76 real sector projects under the N1Trillion Real Sector Scheme; while 34 Healthcare projects have been funded to the tune of N37.159B under the Healthcare Sector Intervention Facility.

“The facilities are meant to address some of the infrastructural gaps in the healthcare and manufacturing sector as a fall out to the COVID-19 pandemic and to facilitate the attainment of the Governors' 5-year strategic plan."