Covid19: Lagos PDP chairman worries over economic after effect of Pandemic on state
The Lagos State chairman of the Peoples Democratic Party (PDP), Mr. Deji Doherty has warned that the economic crisis that may occur as a result of the Covid19 pandemic may be worse than the effects of the virus.
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Doherty said: “It is quite apparent that the present government headed by the All Progressives Congress (APC) are not working on all fronts or are not at all proactive in their planning during this COVID -19 crisis.
“However, we must put away our partisan differences and work, think and speak in the interest of all Lagosians and Nigerians at large.
“I believe it is time to call on the Central Bank Governor, the Minister of Finance, the Presidential Economic Advisory Team and of course the Bankers Committee to urgently look into how economic stability can be achieved. Is it for instance possible that an economic trading window can be introduced, in order to allow silent trading and clearing of financial instruments through the banking Industry without putting the social distancing and lockdown order into jeopardy?”
Doherty wondered how SMEs and various lower level daily income businesses are meant to survive at this crisis, especially from the discontinuation of full scale banking activities.
While agreeing that only those who are healthy and alive can enjoy the fruits of a business or wages, he cautioned the government not to wave off the high possibility of a recession. He said the IMF has actually predicted that Nigeria may witness the worst recession in 31 years.
He wondered how businesses would pay salaries for work already done or work not done at all during the lock down period.
The PDP Chairman also said that the Economic backlash from the citizens and Lagos State residents would be unimaginable, because the various casual workers , i.e. Drivers , cooks, tailors, barbers , taxi drivers , office workers etc might not be paid or record revenue during this period, and as such would not be able to pay their rent, school fees, buy groceries and food to adequately sustain their families for the next couple of months.
“As a matter of fact, I can see a tsunami of retrenchments in the air and this would be very disastrous for our ailing economy.”
He advised that even though this looming economic disaster cannot be avoided completely, it can be put under control if the right policies are put in place.
Doherty , also called on the Lagos State governor to implement an accelerated action plan on the economic down turn and consequences of the COVID-19 crises as it will hit Lagosians the most because of its population and economic importance especially after having the land borders shut for over a year.
