SPM’s Paul Alaje on Nigeria’s fiscal response to COVID-19

Africa's largest economy, Nigeria, has now confirmed a total of 12 COVID-19 cases, bringing to light the urgent need for a strong fiscal response to combat the pandemic's economic impact. Paul Alaje, Senior Economist at SPM Professionals, recently shared his insights on CNBC Africa regarding Nigeria's current fiscal response to the crisis. The focus was on Nigeria's ability to react to the pandemic given its weak fiscal buffers and the challenges faced by the government in implementing effective measures. Alaje highlighted the significant role of the Central Bank in providing stimulus packages and the importance of alternative policy measures to support the economy during these challenging times. As the government grapples with the economic fallout of the pandemic, concerns have been raised about the cost of governance at both the federal and state levels and the need for structural changes to protect the population from job losses and inflation spikes. Additionally, the discussion touched upon the impact of movement restrictions on small businesses and the struggles faced by informal sector workers in accessing financial assistance. The key theme that emerged from the interview was the necessity for Nigeria to adopt immediate and strategic fiscal policies to safeguard its economy and support vulnerable businesses and workers during the crisis.