FG will use part of N2.3trn ESP stimulus as buyer of last resort – Osinbajo
The Federal Government will use part of the N2.3 trillion stimulus package to purchase locally produced items as buyer of last resort in line with its Economic Sustainability Plan, according to Vice President Yemi Osinbajo, SAN.

The Vice President stated this on Friday at the virtual edition of the 2020 Presidential Policy Dialogue of the Lagos Chamber of Commerce and Industry (LCCI).  

According to him, “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 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.”

Osinbajo said the size of the stimulus is about 1.5 percent of national income or GDP.

This is not as large as we would have liked it to be but it was the best we could do given existing fiscal and monetary constraints, and this is also based on the assumption that the price of crude will average around 30 to 40 dollars per barrel throughout the year. We anticipate an economic growth of about -0.59 percent in 2020, he said.