The Federal Government has expressed fear that unless something is done urgently, about 39.4 million Nigerians may lose their job by the end of the year due to the impact of COVID-19.
Also, the Federal Government expressed fear that more millions may enter into extreme poverty before the pandemic subsides.
The Vice-President of Nigeria, Yemi Osinbajo gave the analysis on Thursday while presenting the report of the Economic Sustainability Committee to President Muhammadu Buhari.
The committee was set up by Mohammed Buhari on March 30, 2020 to respond to what was turning out to be a threat of the most greatest economic downturn in the history of Nigeria, majorly caused by the pandemic.
Part of its reference terms is to develop a sound economic sustainability plan to respond to the challenges of the COVID-19 pandemic and to recommend monetary policy measures to support the plan.
Others are to offer a fiscal or monetary stimulus package which includes support to private businesses and segments of the population that are vulnerable.
While presenting the report to Buhari, Osinbajo pointed out that the lockdown and social distancing measures that were put in place to halt the spread of COVID-19 have had negative impact on factories, farms, trade, transport and tourism.
He said that it is possible the federation experience a shortfall of about N185bn every month in the amount available to allocate to the three tiers of government.
Osinbajo said: “Several projections, including those done by the NBS on behalf of the Economic Sustainability Committee, showed a severe downturn in our oil earnings, as a result of which, even with oil price at $30 a barrel, we would still have a shortfall of about N185bn every month in the amount available for allocation to the three tiers of government.
“They showed that unemployment may rise to 33.6 per cent or about 39.4 million people by the end of 2020, if we fail to take prompt preemptive measures.
“They showed that millions more will fall into extreme poverty before the pandemic ends; and that GDP may fall to between -4.40 per cent and -8.91 per cent, depending on the length of the lockdown period and strength of our economic response.”
