Impact of COVID-19 on Nigerian Government extreme — Finance Minister

The Minister of Finance, Budget and National Planning, Zainab Ahmed, has said the Coronavirus Disease has had extreme impact on the Nigerian Government.

The Minister spoke at the virtual launch of the Nigeria Solidarity Support Fund backed by the Nigeria Sovereign Investment Authority on Thursday.

In her brief speech at the launch, which was chaired by the Vice President, Prof. Yemi Osinbajo (SAN), Ahmed said: “As many Nigerians are facing unprecedented challenges from COVID-19, the strain on our government is extreme, and the impact on people all over the country continues to grow.

“The shock from the effects of COVID-19 is somewhat unusual, as it affects significant elements of both supply and demand.

“Supply is disrupted due to morbidity and mortality, but also the containment efforts that restrict mobility, and the high cost of doing business due to restricted supply chains and the tightening of credit.

“Demand is also falling due to high uncertainty, increased precautionary behaviour, containment efforts, and rise in financial cost that reduce the ability to spend.”

Ahmed said as at now, it was difficult to predict how long the impact would be.

She said it all depended on how long the virus remains around.

She said: “How long the impact would be is still difficult to predict. It would depend on the pandemic, and it would depend on the timeliness and effectiveness of our
actions.

“And I want to focus on those.

“Number one priority in terms of fiscal response is ensuring frontline health-related spending to protect people’s wellbeing, to take care of the sick, and slow the spread of the virus.”

Speaking on the NSSF, Ahmed said it could not have come at a better time.

She said: “I cannot emphasize enough how urgent it is for a fund vehicle like the Nigeria
Solidarity Support Fund to help the Government in funding COVID-19 response efforts and supply of the necessary, protective and treatment equipment and long term strengthening of healthcare systems.

“The NSIA is a credible government agency tasked with driving economic development and fund management across Nigeria. Global Citizen’s partnership with NSIA provides the right vehicle for fund management and disbursement transparency in support of the Government’s COVID-19 response.”