The Federal Executive Council (FEC) approved the N2.3 trillion stimulus package (1.6% of GDP) proposed by the Economic Sustainability Committee, designed to cushion the impact of the COVID-19 pandemic on Nigeria’s economy. The stimulus package includes the initially approved N500 billion (0.34% of GDP) intervention fund, which was approved by the President to support healthcare facilities, provide relief for taxpayers and incentivize employers to retain and recruit staff during the downturn.
The government is reviewing its 2020 budget and, given the expected large fall in oil revenues, announced plans to cut/delay non-essential capital spending by N1.5 trillion (close to 1 percent of GDP).
Import duty waivers for pharmaceutical firms were introduced. Regulated fuel prices have been reduced, and an automatic fuel price formula introduced to ensure fuel subsidies are eliminated.