The federal government has been called upon by the umbrella body of the organised private sector, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) to devise a clear Plan of Action to cushion the negative economic impact of COVID-19.
National President of NACCIMA, Hajiya Saratu Iya Aliyu, in a statement on Friday in Lagos, said NACCIMA had taken note that stringent efforts were being made to contain the spread of the deadly virus in Nigeria and across the world.
She, however, said that the association was of the strong view that government must equally pay attention to the potentially devastating negative economic dimension of the global pandemic.
According to her, this has been revealed in the drastic fall in prices of crude oil to around $32, well below the 2020 budget benchmark of $57 per barrel.
She also noted the absence of a market for about 50 cargo of Nigerian crude that has not found buyers, as recently revealed.
“All these developments, according to the Minister of Finance, is compelling government to undertake a review of the 2020 Budget.
“NACCIMA strongly supports a stimulus package to support the SMEs, in particular, who will be most hard hit by the economic impact of Covid 19.
“Among other steps, government should consider including lowering of interest rate; and enlisting the banks to be part of the stimulus package through favourable interest rates.
“The government should also consider a drastic reduction in the cost of governance to make the required savings,” Iya Aliyu said.
She said that the government must also consider the more effective and widespread use of the National Collateral Registry for easier access to finance by the SMEs.
“We strongly recommend immediate steps for implementation of these recommendations and inclusion in action to be taken by government.
“State governments are equally advised to take necessary action at their own end as appropriate and against the backdrop of these recommendations,” she said.
