Dr Peter Adamu of Kaduna State University (KASU), has commended President Muhammadu Buhari for the development of a comprehensive financial stimulus policy to address the effect of COVID-19 pandemic on the nation’s economy.
Adamu, a lecturer with the Economic Department, KASU, gave the commendation in an interview with our correspondent on Tuesday in Kaduna.
Adamu, who was reacting to the presidential broadcast, noted that the president directed relevant Ministries, Department and Agencies (MDAs) to jointly develop a comprehensive policy for a “Nigerian economy functioning with COVID-19”.
He described the directive as “timely”, noting that the move would ensure that the Nigerian economy adapts to the new realities that confronts the nation’s present and immediate future.
The academic don said the policy, if well developed, would stimulate the economy during and post pandemic crises to herald increase production output as well as access to goods and services.
He pointed out that the Nigerian economy might slipped into recession immediately after the lockdown, stressing that having a policy in place was a good response to mitigate the effect.
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“The effect of COVID-19 is hitting us in the immediate or the short term; it will hit us in the medium term, and this will be followed by a huge economic consequence in the long term.
“While government at all levels are rallying round to put some palliative measures in place to cushion the effect in the short term, the major concern should be the long-term effect.
“You may not see the real effect on the economy in the short term, while in the medium term you may see some people, particularly in the private sector losing their jobs,” he said.
The economist observed that that the private sector would be severely affected, compared with the public sector in the long run, stressing that the COVID-19 economic policy was key to ensuring the nations survival.
Adamu explained that cropping season has arrived, while the supply chain for agricultural inputs like fertilisers and improve seeds among other critical inputs were already affected by the lockdown.
According to him, this is the right time to come up with policies to support the economy and businesses including farmers to increase agricultural output.
“This is because if we do not increase our agricultural output, we will be forced to import food with huge financial implications from other countries who are equally shutdown.
“I, therefore, commend the Federal Government for putting critical fiscal and monetary measures in place to regulate the economy for the betterment of Nigerians.
“The Central Bank of Nigeria has already set aside N50 billion to support small and medium enterprises and another N1 trillion loan facility to the manufacturing sector, COVID-19 economic policy is on the way.
“All these is to stimulate the economy,” he said.
Adamu, however, stressed that the fiscal and monetary policies will only create the needed impact if they reached the targeted group.
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