COVID-19: Buhari approves engagement of 774, 000; FG provides N102bn intervention in healthcare sector; Seeks $3.5bn from IMF, AfDB
By Mustapha Sumaila
Abuja, April 6, 2020
Mrs Zainab Ahmed, Minister of Finance, Budget and National Planning, says President Muhammadu Buhari has approved the engagement of 774, 000 Nigerians on Special Public Works programme in the country to cushion the effect of COVID-19 pandemic.
Ahmed disclosed this at a press conference on fiscal stimulus measures in response to COVID-19 pandemic and oil prices fiscal shock, on Monday in Abuja.
She explained that 1, 000 people were expected to be recruited from each of the 774 local government areas in the country.
According to her, the sum of N60 billion for allowances and operational cost has been earmarked from the COVID-19 crisis intervention fund for the initiative.
She disclosed that President Buhari had previously approved a pilot special public works programme in eight states to be implemented by the National Directorate of Employment (NDE).
She added that Buhari had now approved that this programme be extended to all 36 States and the FCT from October to December 2020 and the selected time-frame was to ensure that it was implemented after the planting season.
“The Federal Ministry of Finance, Budget and National Planning is also evaluating how best to extend the Special Public Works Programme, to provide modest stipends for itinerant workers to undertake Roads Rehabilitation and Social Housing Construction.
Ahmed said: “And also Urban and Rural Sanitation, Health Extension and other critical services. This intervention will be undertaken in conjunction with the key federal ministries responsible for Agriculture, Environment, Health and Infrastructure, as well as the states, to financially empower individuals who lose their jobs due to the economic crisis.
“Mr. President has approved the establishment of a-N500 billion COVID-19 Crisis Intervention Fund. The establishment of the Fund will involve drawing much-needed cash resources from various Special Funds and Accounts, in consultation with and with the approval of the National Assembly.
“The N500 billion is proposed to be utilized to upgrade healthcare facilities as earlier identified by the Presidential Task Force on COVID-19 and approved by Mr. President.
“This will help to finance the Federal Government’s Interventions to support states in improving healthcare facilities, finance the creation of a Special Public Works programme and Fund any additional interventions that may be approved by Mr. President”.
The minister noted that although similar challenges were experienced in 2008/2009 as well as in 2015/2016, Nigeria had considerably lower fiscal buffers now than in previous economic downturns.
According to her, the decline in international oil prices and domestic production may be magnified if a severe outbreak of COVID-19 occurs, despite ongoing efforts to curtail the spread of the pandemic through compulsory lockdown of Lagos and Ogun States, as well as the FCT.
The minister said to directly address these health and economic challenges, the president approved the Fiscal Stimulus Package among others as part of an Integrated Policy Framework to ensure that Nigeria’s healthcare system, fiscal position and economy were sufficiently supported to weather these shocks.
Meanwhile, the Federal Government has provided N102.5 billion in resources for direct interventions in the country’s healthcare sector, the Minister of Finance, Budget and National Planning also said at the news conference on Monday.
She explained that of this sum, N6.5 billion had already been made available to the Nigeria Centre for Disease Control (NCDC) for critical expenditure.
She stated that the Federal Government remained committed to supporting the states in these difficult times, particularly those states that were currently battling with the COVID-19 pandemic.
According to her, Lagos State has already been provided with N10 billion in emergency funding.
She stated that as the situation in the Federal Capital Territory (FCT) and other states at the forefront of the government’s efforts unfolds, explicit criteria were to be agreed with the Federal Ministry of Health and NCDC to determine when funds would be released to the affected states and the FCT.
“More funds are to be provided from the proposed COVID-19 Crisis Intervention Fund to address emerging and priority funding needs as these arise.
‘To complement these initiatives, we are taking steps to activate, release and, where necessary, enhance the hazard allowances provided in the remuneration structure of the federal health sector workers. The Federal Government enjoins the affected states to take similar measures.
“We take this opportunity to recognise the patriotism and sacrifice of our frontline healthcare workers, whose critical roles in combating the COVID-19 pandemic place their health and lives at risk.
“We thank all of you for your heroic efforts to protect your fellow citizens from disease and death. The Federal Government hereby assures our frontline healthcare workers of adequate insurance, compensation and support during, and in the aftermath of the COVID-19 Pandemic.”
“I wish to reassure our citizens and residents that the Federal Government remains committed to working closely with the National Assembly, the State Governments, Multilateral Organisations, the Donor Community, and the International Community at large, to alleviate the suffering of our people due to the ongoing economic and healthcare challenges.
“I would like to particularly appreciate the extensive understanding and support that we have received from our development partners, especially the World Bank, the International Monetary Fund, the African Development Bank and the Islamic Development Bank in our efforts to grapple with the COVID-19 crisis,” she added.
The Minister said further at the news conference that the Federal Government has applied for $3.5 billion request from International Monetary Fund (IMF) and African Development Bank (AfDB) to access concessional funding to support the implementation of the 2020 Budget.
She explained that the government applied for $2.5 billion from IMF on behalf of the states and Federal Government adding that the Federal Government had sought $1.5 billion, while one billion dollars would go to the states from the IMF request.
According to her, the sum of one billion dollars is also being expected from AfDB.
Ahmed disclosed that the IMF’s COVID-19 Rapid Credit Facility would be drawn from Nigeria’s existing holdings with the World Bank Group and International Monetary Fund.
She said that the loan would not be tied to any conditionalities, adding, however, that it was important to also clarify that Nigeria did not intend to negotiate or enter into a formal programme with the IMF at this time, or in the foreseeable future.
Ahmed stated that though minimum of six weeks was required to process the funds, the government would do everything possible to access it within two to three months in order to use it in good time for what it was meant for.
Meanwhile, the minister also disclosed that the Nigeria Centre for Disease Control (NCDC) had access to a Regional Disease Surveillance Systems (REDISSE) facility from the World Bank in the sum of 90 million dollars.
She said out of this fund, eight million dollars had already been drawn while the country requested to fully draw down on the outstanding balance of 82 million dollars.
“The government has also requested for additional financing in the sum of 100 million dollars from the REDISSE project to meet COVID-19 emergency needs in all the 36 States and the FCT, through the NCDC and Federal Ministry of Health.
“This will enable us to expand the capacity of intensive Care Units (ICUs), enhance laboratory capacity, accelerate the procurement of test kits, strengthen surveillance mechanisms as well as improve information management,” she added.
