Speaking about measures needed to cushion the effect of the coronavirus pandemic on the state economy, Commissioner for Budget and Planning Sam Egube said the state government is still engaging with various stakeholders to fashion out the best line of action to take, including budget re-direction.
After commending Governor Sanwo-Olu for showing leadership in implementing his economic strategies, Egube admitted that the pandemic has put a strain on economic activities in the state.
The state will embark on activities that can help the economy to come back into full swing post-pandemic, he assured.
Commissioner for Finance Dr. Rabiu Olowo said the national economy felt the impact of the twin-shock occasioned by the falling prices of oil in the international market and freezing of revenue due to the COVID-19 pandemic.
Admitting that the state revenue has been greatly affected by under-performance of businesses occasioned by the lockdown, he said it would be premature to evaluate the state’s loss at present.
The Finance Commissioner also disclosed that the state has distributed all donations it received from the private sector and federal government transparently, stressing that all funds received in support of the fight against the pandemic will be fully accounted for.
Olowo disclosed that Lagos has granted three months moratorium on accrued principal and interest payment on loans granted to Small and Medium Enterprises (SMEs) and Entrepreneurs by Lagos State Employment Trust Funds (LSETF).
“Those who have loans currently running with the LSETF have been given three months moratorium by the State Government for principals and interests to ensure that these small businesses that generated jobs are not hit by the crisis. We will also be raising the capacity of LSETF to support the SMEs with capital that will act as a shock absorber and give necessary incentives to enable them to mitigate the impacts. This plan is for a period after the battle would have been won against COVID-19,” Olowo said.
