Doing this thread to summarize the “fiscal stimulus package” announced by Nigeria’s Minister of Finance earlier this month, against the backdrop of #Covid19:
Establishment of a N500 billion COVID-19 Crisis Intervention Fund, with the approval of the National Assembly.
The Fund will, among others:
-Upgrade Federal and State healthcare facilities
-Finance a Special Public Works Programme targeting 774,000 Nigerians
The Fund will, among others:
-Upgrade Federal and State healthcare facilities
-Finance a Special Public Works Programme targeting 774,000 Nigerians
The Special Public Works Prog will last 3 months (Oct-Dec 2020) & “provide modest stipends for iterant workers to undertake Roads Rehab, Social Housing Construction, Urban & Rural Sanitation, Health Extension & other critical services.”
Pilot ongoing:
Pilot ongoing:
Nigeria is tapping the World Bank’s Regional Disease Surveillance Systems (‘REDISSE’), to support @NCDCgov, and also to upgrade ICU, laboratory, and surveillance capacity in the States.
Nigeria has applied to the IMF for funding from its Rapid Financing Instrument (RFI), which will see Nigeria drawing “from existing holdings with the World Bank Group / IMF”. @FinMinNigeria stresses that “This loan will not be tied to any conditionalities.”
.@FinMinNigeria says @NigeriaGov is making available ~100 billion Naira “for direct interventions in the healthcare sector.” This is the pool of money from which N6.5 billion has already been made available to the NCDC, and N10 billion in federal grant to Lagos State.
Should point out that these measures are not only on account of #Covid19 but also the drastic drop in oil prices (which is in some ways tied to the impact of the pandemic, by the way).
Fiscal Support for States:
“President Buhari has approved that the sum of US$150 million be withdrawn from @nsia_nigeria Stabilization Fund to support June 2020 FAAC disbursement. The Stabilization Fund was created for such emergencies and is to be utilized for this purpose.”
“President Buhari has approved that the sum of US$150 million be withdrawn from @nsia_nigeria Stabilization Fund to support June 2020 FAAC disbursement. The Stabilization Fund was created for such emergencies and is to be utilized for this purpose.”
.@FinMinNigeria and @cenbank are working out a “Debt and Interest Moratorium” for all States on FG & CBN-funded loans, “in order to create fiscal space for the States given the projected shortfalls in FAAC allocations.” Final details will be announced after Presidential approval.
Now this predates #Covid19 but the timing has been serendipitous: the Finance Act, 2019’s provisions:
—Tax relief for MSMEs. (Businesses that earn N25 million or less annually exempted from Corporate Tax).
—VAT Exemptions for essential food, medical supplies & other basic items
—Tax relief for MSMEs. (Businesses that earn N25 million or less annually exempted from Corporate Tax).
—VAT Exemptions for essential food, medical supplies & other basic items
Charitable/philanthropic donations by benevolent companies to support Nigeria’s #COVID19 Pandemic efforts will be tax-deductible, in line with Section 25 of the Companies Income Tax Act (CITA).
Revision of 2020 Budget:
Benchmark oil price revision to US$30/barrel; oil production to 1.7mbpd. Downward revisions also for Non-Oil revenue projections. Revision also of 2020–2022 Medium-Term Expenditure Framework (MTEF). New budget will provide for #Covid19 Crisis Fund etc.
Benchmark oil price revision to US$30/barrel; oil production to 1.7mbpd. Downward revisions also for Non-Oil revenue projections. Revision also of 2020–2022 Medium-Term Expenditure Framework (MTEF). New budget will provide for #Covid19 Crisis Fund etc.
[Based on recently agreed OPEC+ cuts, Nigeria’s oil production quota will now be:
1.412 Million bpd (May-June2020)
1.495 Million bpd (July-Dec2020)
1.579 Million bpd (Jan 2021-Apr2022)
This is apart from condensate production of 360-460 KBOPD (exempt from OPEC quotas).]
1.412 Million bpd (May-June2020)
1.495 Million bpd (July-Dec2020)
1.579 Million bpd (Jan 2021-Apr2022)
This is apart from condensate production of 360-460 KBOPD (exempt from OPEC quotas).]
Note that the Revision of the 2020 Federal Budget will require legislative approval / appropriation.
“I will continue to work closely with my colleagues at @FinMinNigeria; @TradeInvestNG; @FMPRng; @Fmohnigeria; @cenbank, to pursue greater coherence and coordination of Nigeria’s fiscal, monetary as well as trade policies, during the difficult days and months ahead.”—@ZShamsuna
Overseeing the entire national economic response is the Economic Sustainability Committee, established at the end of March by President @MBuhari, and chaired by Vice President @ProfOsinbajo.
The above measures are the ones proposed and being implemented by @FinMinNigeria. These are separate from the #Covid19 Stimulus measures being proposed and implemented by the Central Bank of Nigeria. See @cenbank for details.
