June 04, 2020

COVID-19: Lagos economy suffers N2.3tn loss to Corona Virus pandemic | LAGBAJABLOG



The Lagos State government, has revealed that about N2.3 trillion was cut short from the state’s economy, in a presentation pointing diverse implications of the coronavirus pandemic on the economy.







This statement was made by the Lagos State Commissioner for Economic Planning and Budget, Sam Egube, and his colleague in Information and Strategy, Gbenga Omotoso, at a recent briefing before the State House of Assembly.

In their statement, the Lagos State official said, the pandemic-influenced lockdown contributed tremendously to the fall in the economy, Adding, that the situation wasn’t only Lagos State as almost two-thirds of the world’s production capacity had been slashed courtesy of the coronavirus pandemic.

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In the new suggestion, the officials explained that there was a awful need for the budget to change given the occurring effect of the external pressure that has really affected the state to become a much dreaded internal force.

It reads:

“What we are proposing to the House of Assembly is a budget review because the size of the budget is going to change. And it is going to change largely due to external pressure that have become internal pressure, arising from the coronavirus pandemic.

“We have always said that what is about to happen is a combination of a health pandemic and an economic pandemic. Even after COVID-19 is gone, the economic effect of it would always outlive the health effect.

“When we did the financial modelling and worked on the scenarios, even though the World Bank and IMF had said Nigeria’s GDP would go down as much as about 3.6 per cent, for us in Lagos, we felt it would be about three per cent and that for Lagos is equivalent to N2.3 trillion in output loss. That loss has a direct relationship with unemployment.”

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