The Minister of State for Budget and National Planning, Prince Clem Agba, has said that the federal government of Nigeria expects the injection of about N2 trillion stimulus into the economy in response to the COVID-19 pandemic and the fall in oil prices.
According to Agba, the government would explore ways of supporting the airlines, saying that the aviation sector loses N21 billion monthly due to the present pandemic.
Speaking at a webinar on Tuesday, the minister said the Economic Sustainability Committee had outlined five broad policy objectives with which to deal with the problems.
He said: “All in all, when everything is put together, both government funding and the funds we are expected to get from the Central Bank of Nigeria (CBN), Banks of Industry and other multilateral agencies and grants that we are receiving, we expect to get a stimulus of about N2 trillion going into the economy.
“We are also looking at how to support the Aviation sector. Like you know, a lot of planes are parked and this is causing almost N21 billion (loss) on a monthly basis. We are looking at how to provide some form of bailout support to ensure that the industry doesn’t die.”
“Of the $2.5 billion facilities from the World Bank, about $1 billion of it will be going to the States as loans. These are concessionary loans. Mr. President has already approved N850 billion loan from domestic capital market.
“He has also approved $150 million to be taken from the Sovereign Wealth Account in support of FAAC.”