The Minister disclosed this at the ongoing 26th Nigerian Economic Summit organised by the Nigerian Economic Summit Group and the Federal Ministry of Finance, Budget, and National Planning.

She said the country would exit from the recession in the fourth quarter of this year or by the first quarter of 2021.

Nigeria, Africa’s biggest economy, entered its second recession in five years in the third quarter of this year as the Gross Domestic Product fell for the second consecutive quarter.

The GDP dropped by 3.62 per cent in Q3 and 6.10 per cent in Q2, according to the National Bureau of Statistics.

The finance minister said the COVID-19-induced recession followed the pattern across the world where many countries had entered economic recession.

“Let me remind us that before the impact of COVID-19, the Nigerian economy was experiencing sustained growth, which had been improving quarter by quarter until the second quarter of 2020, when the impact of the COVID-19 was felt,” she said.

Ahmed said other countries also in recession, including the United Kingdom and the United States, recorded much deeper contraction than that of Nigeria.

“Nigeria is not alone in this, but I will say that Nigeria has outperformed all of these economies in terms of the record of a negative growth.”

According to her, South Africa, which recorded a decline of -50 per cent compared to Nigeria’s -6.1 per cent in Q2, will also record a deeper negative growth in Q3.

“While the economy has entered into recession in the third quarter, the trend of the growth suggests that this will be a short-lived recession, and indeed by the fourth or, at worst, the first quarter of 2021, the country will exit recession.

“Our expectation of a quick exit, which will be historically fast, is anchored on the several complementary fiscal, real sector and monetary interventions that have been proactively introduced by government to forestall a far worse decline of the economy and alleviate the negative consequences of the pandemic,” Ahmed said.

President Muhammadu Buhari presided over the council’s meeting where the decision was taken in Abuja.

The Minister of Finance, Budget and National Planning, Zainab Ahmed, who briefed State House correspondents at the end of the meeting, said the 2020 Finance Bill was meant to support the 2021 fiscal year budget.

The minister assured that the bill will not lead to an increase in taxes because the situation in the country does not warrant an increase in taxes.

She however said through the bill, the Federal Government was seeking “to make incremental changes to tax laws relating to Customs and Excise as well as other fiscal laws to support the implementation of the annual budget.

She recalled that when Buhari presented the 2021 Appropriation Bill to the National assembly, he directed that the 2020 Finance Bill will also follow to support the budget proposals.

When asked how she would assure Nigerians that the bill will not further put a burden on them with increase in taxes, the minister explained, “In the last Finance Bill 2019, we reduced taxes from 30 percent to 20 percent for enterprises that have turnover of between N25m to N100m. We also moved taxes from 30 percent to zero percent for enterprises that have turnover of N25m and below, which means they pay no taxes.

“What we are doing in the Finance Bill 2020 is to further renew the education tax of two percent for that lower category of enterprises that have turnover of N25m and below.

“So, when we say ‘incremental,’ it means gradually making changes; it means the changes may be up or down but for now, with the economic slowdown, our assessment is that this is the time to cut down on taxes, to not increase taxes at all and to not increase levies. This is the time that we need to do that and that is what we are trying to do.

“Another example is the reduction in the duties for vehicles that will be related to the mass transit. Again, no increase in taxes and no increase in VAT.”

Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, made this known on Friday at a virtual event titled Finance Bill 2020 public consultations.

The Minister said the current “inflation is driven by the cost of transport”.

According to her: “If you look at the rate at which our inflation is going, and you disaggregate the components, you will find that inflation is largely driven by transport cost”.

Government’s resolve, she said, “is to reduce transportation cost so that businesses will have ease and pass benefits to eventual consumers.”

The draft Finance bill 2020, she assured, will address measures to reduce the cost of transportation.

According to her, the bill will have some “interesting new proposals that will look into fiscal relief for mass transit”.

She explained it will be “designed to provide support for mass transit by reviewing the duties regime”.

This, she said, is because government recognises transportation as one of the major cost drivers in the economy.

Members of the committee inaugurated by Buhari include the Attorney-General of the Federation and Minister of Justice, Mr Abubakar Malami (SAN), the Minister of Finance, Budget, and National Planning, Mrs Zainab Ahmed; Minister of Power, Saleh Mamman; and Minister of Works and Housing, Babatunde Fashola.

This was contained in a statement by Dr Umar Gwandu, spokesperson to Malami.

Accroding to the statement, other members of the committee are the Director-General of Nigeria’s Bureau of Public Enterprise, Mr. Alex Okoh, and the President Nigerian Society of Engineers, Babagana Mohammed.

The statement added, “Inaugurating the Committee on Thursday, President Muhamamdu Buhari who described power sector as one of the most critical components of sustainable development, expressed commitment to improve the delivery of power in the country as his enduring and defining legacy.

“He said following the Federal Executive Council Approval, the coast is now clear and the SPV has the responsibility of executing the Presidential Power Initiative (PPI), providing project management for the implementation of PPI and serve as the key manager to ensure cohesion and seamless execution.”