The Federal Executive Council (FEC) has approved the N2.3 trillion stimulus plan as recommended by the Nigeria Economic Sustainability Plan (NESP). The economic sustainability committee led by Vice President Yemi Osinbajo made this known during The FEC meeting on Wednesday.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, announced the approval at the end of the FEC meeting.
“The total package that we presented today is in the sum of N2.3 trillion. N500 billion of this is a stimulus package that is already provided for in the amended 2020 Appropriations Act. These are funds that we have sourced from special accounts. We also have N1.2 trillion of these funds to be sourced as structured low-cost loans which are interventional from the Central Bank of Nigeria as well as other development partners and institutions. We have N344 billion that will be sourced from bilateral and external sources and also additional funds that we can source locally,” she said.
What To Know About The NESP
The NESP is a 12-month ‘Transit’ Plan between the Economic Recovery and Growth Plan (ERGP) and the ERGP-successor-plan currently being worked upon. The major objectives of the Nigeria Economic Sustainability Plan (NESP) are to create jobs and pump money into the economy. In addition, the plan, if properly implemented would stop the economy from slipping into recession. It will as well help small businesses and prioritize local content (Made-in-Nigeria).
What Entrepreneurs Should Expect
According to the plan, there are interventions that would prevent businesses from collapsing and also infuse liquidity into the Nigerian economy.
More so, the plan promotes manufacturing and local production at all levels. It also advocates for the use of made in Nigeria in all public works. This is a great way of creating job opportunities and enhance job sufficiency.
Putting these in perspective, over 10 million jobs will be created in 12 months through food for all projects. The project will hire 5 million people which will cost N635 billion.
In addition, the mass housing strategy will create 1.8 million jobs, and solar power strategy expected is to create 250,000 jobs. Also, the digital economy strategy will create 1 million jobs for outsourcing, while national gas expansion programme will support the creation of 1 million jobs, if they’re initiated.
The list also comprises of road construction and rehabilitation, projected to create 296,000 jobs in six geo-political zones. Also, it is projected to create 774,000 jobs for youths and women post COVID-19.
In addition, the plan will create jobs using labor-intensive methods such as agriculture, facility management, housing, construction, and direct labour interventions. There is also a proposed plan to undertake growth-enhancing jobs, while creating infrastructure investments in roads, bridges, solar power, communications technology and several others.