COVID-19: 39.4m people may be unemployed by end of 2020 – Osinbajo

Vice President Yemi Osinbajo says the economic sustainability committee has received projections that the number of unemployed people may rise to 39.4 million by the end of 2020 if the government does not take prompt measures.

Speaking on Thursday when he presented the committee’s report to President Muhammadu Buhari, Osinbajo said the National Bureau of Statistics also projects that the country would have a revenue shortfall of N185 billion monthly with oil prices at $30 a barrel.

The committee was saddled with the responsibility of developing a credible sustainability plan for repositioning the Nigerian economy pre and post COVID-19 crisis period.

“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 N185 billion every month, in the amount available for allocation to the three tiers of government;

“That unemployment may rise to 33.6 percent or about 39.4 million people by the end of 2020 if we fail to take prompt preemptive measures; that millions more will fall extreme poverty before the pandemic ends; that GDP may fall to between minus 4.40% and minus 8.91%, depending on the length of the lockdown period and strength of our economic response.”

Osinbajo said the committee decided to focus on encouraging local production and innovation while emphasising the use of local materials.

“We have therefore recommended that we must carry out mass programmes that create jobs and utilise local materials. Such will include a mass agricultural programme, which is expected to bring between 20,000 and 100,000 hectares of new farmland under cultivation in every state of the federation and create millions of direct and indirect job opportunities.

“Extensive public works and road construction programme focusing on both major and rural roads and using locally available materials like limestone, cement and granite.

“Mass housing programme to deliver up to 300,000 homes annually, engaging young professionals and artisans who form themselves into small and medium scale businesses within the construction industry, using indigenous labour and materials.

“Installation of solar home system, targeting five million households, serving about 25 million individual Nigerians who are currently not connected to the national grid.

“The provision of ample support for the informal sector through low-interest loans and by easing procedures for registration, licensing, obtaining permits, etc.”

To ensure proper implementation, the committee recommended that ministers be responsible for supervising implementation in their ministries.

In his response at the presentation ceremony, President Buhari lauded Nigerians for their resilience and adapting to the realities of COVID-19, noting that the outbreak of the pandemic had thrown the entire world into serious economic crisis thus, making things difficult.

“While the COVID-19 pandemic spread through our towns and cities, it continues to take a massive toll on the economy. I know that many of us have experienced great difficulty during this time, businesses have considerably slowed down and in certain instances, operations closed, work days have been cut short and personnel liberties restricted, people have lost their jobs and earning a living has indeed been difficult.

“This has been a trying time for those in the informal sector, which constitutes a large part of our economy, important family celebrations were held without the presence of loved ones, schools are closed and parents have had to resort to home schooling in addition to juggling other responsibilities.

“Despite all these, Nigerians have done their best and persevered. I must salute Nigerians for their resilience in adapting the realities of the covid-19 effect while also recognising the super human effort of our frontline health workers who continue to play a critical role in keeping our country and people safe.”

While noting the effects of the pandemic on the revenue and policies and programmes of government, the President said more efforts would be geared towards making life better for citizens.

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“Non-oil income largely made up of taxes is also dramatically reduced on account of the lockdown. It is clear that businesses face the prospect of collapse so we must prepare for difficult times, while the government continues to seek ways of supporting businesses and industry,” he said.

Commenting on the job done by the committee that produced the Economic Sustainability Plan, President Buhari appreciated the committee’s good work, where it made some important recommendations that can serve as a national plan to the nation.

“I am pleased to hear that the Economic Sustainability committee consulted with both the National Economic Council and the National Assembly and I look forward to a continuing partnership with both organs, to implement what I consider a national plan.

“As we go forward, we must chart a new course and remain steadfast. I believe the priorities contained in this plan present a practical way of achieving our desire of a truly competitive economy that can support our people and secure our future.

“I congratulate the Economic Sustainability committee for completing this critical national assignment in good time. I believe that with God’s help and in a sense of duty to prosperity we will successfully reset our economy for a brighter future,” Buhari stated.