This proposal was presented by a committee led by Nigeria’s Vice-President Yemi Osinbajo.
The country’s cabinet approved the stimulus package during a virtual meeting on Wednesday (June 24, 2020).
The pandemic has slowed the global economy causing most countries to develop stimulus packages for businesses.
The slump in global oil prices coupled with the pandemic has put Nigeria's economy under pressure.
One of Nigeria’s major revenue generators is the oil sector since it is one of the continent's largest oil producers.
The Vice President said if the country does not put measures in place, millions of Nigerians can become extremely poor before the pandemic ends
Yemi Osinbajo explained that their objective in developing the stimulus package is to put money into the economy, and hopefully prevent a recession.
It is not yet clarified how the money would be distributed to businesses and households.
Stimulus packages in the past have been misappropriated by public officials.
Meanwhile, the World Bank has approved a $750m loan for Nigeria’s energy sector.