The President Muhammadu Buhari administration has announced its post-COVID-19 plans for Nigeria’s economy.
The federal government assured that it would improve the healthcare infrastructure and economy, while creating more jobs for millions of Nigerians in different sectors, supporting small businesses, local production and manufacturing, as well as extending the social safety net for the most vulnerable in society.
Vice President Yemi Osinbajo, stated this during his participation as a guest panelist in the Emmanuel Chapel’s “Economic Sustainability Beyond COVID-19” webinar.
Buhari last week Thursday at the Council Chambers received the Osinbajo-led Economic Sustainability Committee (ESC) Plan entitled “Bouncing Back: The Nigerian Economic Sustainability Plan.”
On the Buhari administration’s efforts to cushion the effects of the pandemic on Nigerians, the Vice President stated that improving healthcare infrastructure remains a major objective of the administration.
He said, “Out of the N500bn initial stimulus fund that is factored into the current budget, N126bn of it is going into healthcare.
“We’ve all noted how states have risen up to the challenge of the COVID-19 pandemic and how resuscitated healthcare facilities, new isolation centres, new ICUs are coming up. The number of testing centres has also increased. We are hopeful that we’ll be able to sustain that momentum.”
Osinbajo noted that one of the ways the administration is supporting small businesses is by reducing Company Income Tax.
“In our case, our Tax-to-GDP has been extremely low, VAT in particular. Nigeria’s 7.5% VAT rate is probably the lowest when compared with some other African countries. For example, Kenya has about 16%, South Africa is about 15%, Algeria has 19%. Besides, at the moment, domestic revenue mobilization is an issue.
“A major source of revenue for government is tax. But you must also take account of the fact that we’ve also reduced Company Income Taxes generally, especially for small businesses, which are the engines of growth for the country. So, there is a conscious effort to ensure that we don’t tax businesses out of business