Kaduna Adopts Measures to Tackle Coronavirus
AREWA AGENDA – The Kaduna State Government has said that it has put in place measures to tackle the economic consequences that may arise from the Coronavirus pandemic outbreak.
The new measures are contained in a statement released by Kaduna State Government House after the consideration of the interim report of the economic crisis response committee of the State Executive Council.
Following the consistent spread of the Corona Virus globally, the Kaduna State Government has on 9th March, 2020 established an economic crisis response committee consisting of selected members of the Executive Council, with Economic Development Council chairman Jimi Lawal, assisted by Infrastructure Development Council chair Muhammad Sani Abdullahi.
Following the submission of an interim report, the state government approved the implementing of belt-tightening measures immediately to depress its recurrent costs and cope with the anticipated steep decline in revenues.
The state will also prioritise its capital projects to preserve the investments required for future growth and development.
According to the Statement, “The interim report was discussed at a meeting chaired by the Governor and attended by the Deputy Governor, Dr. Hadiza Balarabe, and senior appointees of the state government.
“The government considered the revenue implications attached to the various scenarios the committee examined. The meeting noted the falling price of crude oil amidst depressed demand for the commodity worldwide and the shocks to normal economic flows and supply chains by shutdowns that have been imposed as part of worldwide emergency public health measures. The meeting also noted the persisting global uncertainty as to how and when the coronavirus pandemic will be effectively contained.
“With some of the world’s largest economies on lock-down, there is significant uncertainty about what this portends for Nigeria and Kaduna State over the short and medium term.
“The report noted that should these unfavourable conditions persist, Nigeria may witness the worst economic crisis in its entire history. Therefore, it is a matter of urgency for a sub-national like Kaduna State to seriously consider and adopt measures to manage an extremely dangerous socio-economic situation. The state will also broadly engage with the federal monetary and fiscal authorities to suggest measures that will be required to reduce the impact of the economic shocks as they affect our state.
“The meeting noted the risks to the state since revenues to a sub-national like Kaduna State consist basically of transfers from the Federation Account Allocation Committee (FAAC) and its own internally-generated revenue (IGR). With crude oil prices falling, FAAC will certainly shrink considerably in the near-term. Business slowdowns and the severity of the resulting economic contraction may significantly limit IGR as well.”