Stimulating the economy and employment in the wake of global pandemic
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1. The document proposes measures to stimulate the economy and employment in the wake of the COVID-19 pandemic by reviewing the effects of the pandemic on national economies and the construction sector. 2. It recommends a stimulus response including a review of national priorities, support for quick impact sectors like construction and manufacturing through loans and grants, and establishing a reconstruction fund. 3. Social rehabilitation measures are also proposed, such as counseling services, national reorientation programs, and using religious organizations to promote economic priorities.
Stimulating the economy and employment in the wake of global pandemic
- 1. Stimulating the economy and employment in the wake of the global pandemic. By Engr. Samson Ameh Opaluwah PhD.fnse,fnice,fniob,fnithe, fnim
- 2. Introduction In order to properly propose measures that can stimulate a post pandemic economy and employment, it is important to review the pandemic and how it gradually crept upon the nations and caught most of them napping and unprepared.
- 3. The Disease 1. The current Corona virus disease variant was first reported in December 2019 in Wuhan, China identified by the WHO as COVID-19. 2. Most studies have shown that it is transmitted between individuals and surfaces. 3. Clinical complications from this disease condition can lead to death and the aged are more at risk
- 4. The Effect of COVID-19 on the nations 1. Transnational shutdown 2. National lockdown 3. Individual isolation, Social/Physical distancing.
- 5. The effect on national economies 1. Shut down of intercontinental trade 2. Shutdown of national economies 3. Downturn of national economies 4. Industrial costs due to loss of production and downtime of men and machines 5. Loss of market/market share 6. Losses due the interruption of direct process plants 7. Loss of income due to unanticipated shutdown
- 6. The effect on national economies contd 8. Force majeure/Insurance Claims resulting in increase cost of projects and increased project duration 9. Delay and work stoppages 10. Contractual claims arising from unanticipated shutdown 11. New operating norms and new operating systems, costs and necessary expansion projects in plants, manufacturing concerns and infrastructure projects Increased health & safety awareness, new mitigating measures Slowdown in global integration of manufacturing and technology
- 7. NIGERIA
- 8. The Effects on the Construction Sector of the Economy A. Manpower- remote operations will be a new norm. Increased Health & Safety awareness with new mitigating measures to protect people Slowdown in global integration of manufacturing and technology. Slowdown in international/intercontinental outsourcing B. Supply chain management in construction Increase use of safe handling & packaging techniques Disrupted delivery schedules Consequential Lead-Time crisis
- 9. The Effect on the Construction Sector contd C. Equipment management system Multiple handling of plant & equipment will be limited Plant Scheduling and Deployment disrupted due to shutdown Disrupted repayment on lease/purchase Agreements Higher equipment downtime until full recovery D. Funds- Higher cost of funds due to the consequential economic melt down Higher interest rates Higher project costs due to increase construction costs Lower rates of return for investors due to higher project cost and longer construction duration
- 10. The Effect on the Construction Sector contd E. Construction program Mandatory review of construction programme due to shutdown Unavoidable extension of time Unavoidable delay in projects completion time Project cost overruns Increase cost of funds Increase risk profile for both projects & investors Increase final project cost
- 11. Stimulus Response Required Stimulus response required to regenerate the economy and employment A total review of national priorities Define the maximum quick economic impact sectors such as Construction(infrastructure/housing/artisanship) Manufacturing, Agriculture, Trade, healthcare with emphasis on local production/ manufacture of inputs. Support these sectors with Single Digit soft loans & grants Support the patronization of locally manufactured goods as an economic priority-support with incentives and grants
- 12. Embark of massive Artisan Skills acquisition schemes to address youth restiveness and unemployment. Ban the export of primary products without beneficiation. Mines & Mineral production should be commercialized with government providing regulations and support for growth Agricultural production and marketing should be commercialised with government acting as regulators and providing support for investors. Establish a National/ Economic Post Pandemic Reconstruction Fund (NEPPReF) Security Give amnesty to Boko Haram, herders, bandits & kidnappers provided they release their hostages within 90 days in order to remove the distraction of Security issues in the national recovery programme
- 13. Remodeling of moribund industries and factories into production plants for inputs in the target sectors especially construction. Explore the privatization of facilities management of infrastructure through a PPP arrangement. Revolutionalise rural housing delivery in our local communities by creating and supporting a cooperative type housing delivery supported by skilled artisans trained in the localities. Refocus Agriculture on the development of the Rural Economy.
- 14. Social Rehabilitation 1. Reinforce marital counseling units in the Social Development departments 2. Provide post pandemic trauma disorder rehabilitation services for the vulnerable 3. Fund and reinforce National Reorientation programs to support the national priorities. 4. There should be a deliberate program to use religious organisations to promote national economic priorities and increase peoples buy-in. 5. Explore rural community-based infrastructure/housing delivery models to service SMEs and address unemployment.
- 15. Thank You