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Nigeria’s economy is collapsing – VP Osinbajo

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Vice President, Yemi Osinbajo, has said the adverse effect of COVID-19 pandemic has greatly affected revenue and foreign-exchange earnings in Nigeria.

Osinbajo said this on Monday, while representing President Muhammadu Buhari at the start of the first-year Ministerial performance review retreat holding in Abuja.

“For the government, it has been a particularly trying time,” the vice president said, adding that, “as a result of the poor fortunes of the oil sector, our revenues and foreign exchange earnings have fallen drastically. Our revenues have fallen by almost 60 per cent.”

According to Osinbajo, despite the slump, government had to sustain expenditures, “especially on salaries and capital projects, in order to keep the economy going.”

He said the government adopted a ₦2.3 trillion economic sustainability plan to mitigate the effect of the economic slowdown.

The plan, he noted, consists of fiscal, monetary, and sectoral measures, and is expected “to enhance local production, support businesses, retain and create jobs and provide succour to Nigerians, especially the most vulnerable.”

“But we have also had to make some difficult decisions to stop unsustainable practices that were weighing the economy down,” he said.