Nigeria to tap into its sovereign wealth fund to fight COVID-19 crisis

Nigeria is taking bold fiscal measures to combat the COVID-19 crisis, including a plan to withdraw $150 billion from its sovereign wealth fund. This decision comes amidst a global pandemic that has left governments grappling with economic challenges. Michael Angodi, Associate Director of Tax Advisory and Regulatory Services at Andersen Tax, provided insights into Nigeria's response to the crisis in an interview with CNBC Africa. The Nigerian government recently approved a 500 billion Naira COVID-19 crisis intervention fund, demonstrating a commitment to addressing the challenges posed by the pandemic. Additionally, Nigeria has applied for assistance from the International Monetary Fund's rapid credit facility. The government is also providing tax waivers to 25 companies in Nigeria under a special arrangement for pioneer status, aiming to support businesses during these unprecedented times. Angodi commended the government's efforts, emphasizing the importance of collaboration between the public and private sectors in mitigating the impact of the crisis. He highlighted the need for concrete incentives to encourage companies to retain their employees and continue operations. Angodi suggested that the government engage directly with businesses to provide support and ensure compliance with tax obligations. As Nigeria navigates the complexities of the pandemic, stakeholders are hopeful that ongoing initiatives will yield positive outcomes in the long run.