COVID-19!!LOCUST YEARS AHEAD

COVID-19!!LOCUST YEARS AHEAD

BY ABDULMUMINI ADEKU[LAGOS,NIGERIA]

Fresh facts are beginning to emerge as at press time that the Nigerian Federal Government will have to adopt belt tightening measures laced with a lot of financial prudency and discipline if  it is to survive the realities of the Covid-19 Pandemic.

Checks by The News office Desk of the E.N.M.Paedia Express Multimedia Group of Lagos,Nigeria shows that irrespective of the recent Central Bank of Nigerian 's intervention on job cuts  the chicken was finally home going to come home to roost as job cuts could not be avoided eventually.

An impeccable source had revealed to this reporter  that his bosom friend from his childhood days    and who was a Regional Head of one of the banks had recently called to alert him to the fact that he was on his way to Canada because he was aware that the bank was shutting down 29 out of 34 branches under his jurisdiction down and this was due to severe market pressure.

The source explained that as at press time his friend has already alerted the leadership of his bank to inform  them of his intentions to resign  so that he can collect his entitlements as against allowing his employers to lay him off..

In a related issue, yet another source disagreed in very strong terms  with those accusing The Muhammadu Buhari regime  of dereliction of duties as Covid-19 realities bite harder.

He insisted that how could a nation where it multi-billionaires who were fond of posing around with Forbes as the richest people on earth but who unexpectedly do not like to service their taxes to the government expect the same to bail her citizens out in the mould of the United States of America  and other western nations that shelled out a fortune to alleviate the pains of her citizens as Covid-19 reality bit harder.

According to the source ,it was revelations by Mrs Kemi Adeosun ,The Former Minister of Finance over the refusal of eminent Nigerians to pay tax whose dividends could have being used  to plug several holes at a time of a global emergency like  this that led to her been pushed out of office rather than the National Youth Service Corp certificate  issue which he claimed was a smoke screen as she ought not to have resigned initially since she did not know that the people who procured her N..Y.S.C .discharge certificate did not use  the right channel ..

Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF) issued the following statement:

“Nigeria’s economy is being threatened by the twin shocks of the COVID-19 pandemic and the associated sharp fall in international oil prices.  President Buhari’s administration is taking a number of measures aimed at containing the spread of the virus and its impact, including by swiftly releasing contingency funds to Nigeria’s Center for Disease Control and working on an economic stimulus package that will help provide relief for households and businesses impacted by the downturn.

“To support these efforts, Nigeria’s government has requested financial assistance under the Fund’s Rapid Financing Instrument (RFI). This emergency financing would allow the government to address additional and urgent balance of payments needs and support policies that would make it possible to direct funds for priority health expenditures and protect the most vulnerable people and firms. We are working hard to respond to this request so that a proposal can be considered by the IMF’s Executive Board as soon as possible.”

‎ The Nigeria Labour Congress (NLC) has urged the federal government not to sack workers as the country prepares for more consequences of the Covid-19 pandemic on the economy. The NLC president, comrade Ayuba Wabba, in a goodwill message for Easter celebration, stressed that jobs must be preserved, income recovery, and the creation of new jobs must be a priority during the coronavirus pandemic.
The US Department of Labor recently announced that employers cut over 700,000 jobs in March. While there is yet no current statistics on job losses in Nigeria, the National Bureau of Statistics (NBS) reported that in 2019, Nigeria’s unemployment rate rose to 23.1% and underemployment to 16.6%. This might be further worsened by the effects of the pandemic, experts say
Researchers at the African Union (AU) believe the continent will slip into a recession this year due to the impact the coronavirus is currently having on trade, remittances, tourism and a huge fall in global oil prices. An AU report estimates governments will lose around $270 billion from lost trade. The report, first published by Reuters, also says governments will need at least $130 billion in additional public spending to fight the virus. According to a report by the African Union, the vulnerable African economies could be strangled by the coronavirus pandemic with the possibility of up to 20 million job losses and the potential for social unrest. “African economies remain informal and very extroverted and vulnerable to external shocks,” said the report, describing how the spillover from Covid-19 could hit economic activity on the continent.” COVID-19: Africa to fall into first recession in 25 years – World Bank In a related report, the covid-19 crisis, according to the International labour Organisation (ILO) via its official twitter handle noted that the “pandemic is expected to wipe out 6.7 per cent of working hours globally in the second quarter of 2020 – equivalent to 195 million full-time workers.” “Workers and businesses are facing catastrophe, in both developed and developing economies,” said ILO Director-General Guy Ryder. “We have to move fast, decisively, and together. The right, urgent, measures, could make the difference between survival and collapse.” Ryder said “Massive losses are expected across different income groups, but especially in upper-middle-income countries of 7%, translating to 100 million full-time workers.” “This far exceeds the effects of the 2008-9 financial crisis,” said Ryder. Job cuts loom as COVID-19 takes toll on private sector However, Wabba is saying that the covid19 imposes a new sense of awakening to re-order priorities. He said: “Government must now major on the major.” “We must rededicate ourselves to issues that bother the majority. The focus must be efficient, resilient and inclusive health and education systems, ” he added. He noted that “the Covid-19 reminds us that what touches the nose would soon touch the eyes. Rich countries, poor climes, developed economies, struggling societies, workers, owners of capital, politicians, peasants, aristocrats, artisans, are all affected by this global pandemic that fears neither class nor status. Wabba expressed optimism that Nigeria would arise from the pandemic better, wiser, and stronger.

additional reports from The Daily Trust Newspapers,Abuja,Nigeria,The International Monetary Fund H.Q.