'Why FG will use part of N2.3trn ESP stimulus to serve as buyer of last resort'

The Federal Government will use part of the N2.3 trillion stimulus package to purchase locally produced items as the buyer of last resort in line with its Economic Sustainability Plan.
Speaking recently at the virtual edition of 2020 Presidential Policy Dialogue of the Lagos Chamber of Commerce and Industry (LCCI), Vice President Yemi Osinbajo said: In all of what we are doing, part of the N2.3 trillion stimulus package is to make government the buyer of last resort. This is to ensure that the whole question of demand, which is weak at the moment, is strengthened by the fact that the government stands ready to be the purchaser of last resort, with respect to agriculture or even with respect to our housing programme.”

Continuing on measures put in place to support small businesses, he said “Working with the Central Bank, we try to ensure that we are able to put in place a system whereby many businesses that have taken loans will be able to restructure those loans. This is an on-going conversation and we intend to keep the banks reassured that allowing generous restructuring programmes will be supported by the Central Bank and that the Central Bank will not throw them under the bus.”

According to him, Nigeria, like all other countries, have been quite seriously impacted in various ways by the COVID-19 pandemic and it has affected us all either as households or as businesses. Contrary to earlier expectations, it is clear that the pandemic and its effects will remain with us for quite a while. So it has become clear that we have to adapt to it and adopt new ways of doing things.”

He stated, “of course, we used to meet physically, now we must deploy technology and meet electronically. In some ways, we have become efficient and effective, we are deploying far less time and resources to generate similar, if not better impact and outcomes, so there is a silver lining somewhere in these dark clouds.”

He further disclosed that; “we must say that the LCCI, with its rich history since 1888 is probably the only indigenous organization of its kind to have been through a global pandemic like the Spanish influenza of 1918-1920. So, I think we must have a few questions about how you coped then, you are probably the ones who can give us any advice on how to cope now.”
“But quite seriously, the fact that industry and businesses survived even in those early days with all the difficulties, surely must teach us something and the spirit of innovation, the spirit of being creative even in the most difficult times catches the essence of our approach to the challenges of the current situation.”