Recuperating from the Punches of Covid-19: Impact and Prospect -By Azeez Ridwan

Following the explosion of the pandemic coronavirus, punching the economy of hefty nations of the world, crippling developing ones and somersaulting the kindergarten widely known underdeveloped Nations; putting world activities to a halt, suspending governmental activities and strangulating social disposition. It has become a topic of complex discussion between and among politicians, businessmen, economist and of course international experts, as to the way forward in tackling injuries sustain by the world since the outbreak of the coronavirus, which is creating a wider disruption in world economy.

To start with, it is important however, to register into our minds that, before the outbreak of the coronavirus, the International Monetary Fund (IMF) revised the 2020 GDP growth rate from 2.5 percent to 2 percent as a result of low oil prices and limited fiscal space, reaffirming the fact that the plague has caused more injuries in the economy of Nigeria and the world at large, far much more than losses incurred during the second world war, perhaps, this is the reason why some international analyst in this regard view the coronavirus pandemic as a biological warfare.

It is far from any established doubt, visible to the blind and audible to the deaf, that the coronavirus has impacted negatively than positively as it had left an everlasting scar on the face of world economy and social activities.To further substantiate the above, COVID-19 had succeeded in putting small and large scale businesses in Nigeria to a halt, as government at both State and Federal level had imposed a total restriction on movement which hindered buying and selling.

Household consumption has drastically fallen due to low expectation of future income by poor workers and small scale businessmen as a result of restriction of movement, paving way for consumption of essential goods and services which thus regulates the erosion of wealth.According to the Nigeria Stoke exchange, there has been a worst performance in stock exchange since the 2008 financial crisis which wash away the wealth of investors. The Central Statistical Bureau has also compiled a data stating unequivocally that unemployment rate increased to 7.4% in the first quarter of year 2020 arising from the restriction imposed as a result of the virus.

Similarly, the restriction in interstate movement and total closure of borders is a close range for decline in exportation, which affect the national economic worth as other nations of the world has follow suit to close their respective borders, which resulted in a great disruption of world exportation.Also, increasing government expenditure had during the lockdown period rose so drastic that there is likelihood of producing a budget deficit which is tantamount to indebtedness and insolvency on the side of the government of the Federation of which outcome may affect budgets in coming years.

According to report of expenditures of the Federal Government in the striking days of the pandemic coronavirus, the central bank was reported to have arranged a fiscal stimulus package, including a 50 billion Naira Credit facility to households, small and medium enterprises mostly affected by the pandemic, of which a 100-billion-naira loan had been allocated to the health sector and 1 trillion-naira loan to the manufacturing sector. All on a very low revenue.

On the other hand, the pandemic coronavirus has positively impacted in the economy of Nigeria through the advancement and improvement of digitalized activities, which during the period of total lockdown keeps functioning in a more sophisticated dimension.

Meetings, conferences, symposiums and other physical activities of the Government and individuals were conducted virtually via Zoom, WhatsApp, Telegram and Facebook; there by increasing the necessity of this online platform as a pavement for strict adherence to social distancing, while these social medias despite the lockdown serve as a source of revenue for the government.

In the social parlance, it has been comically argued that, the coronavirus had strengthen matrimonial bonds, making philanderers and wanderers spouses sit-tight at home in response to social distancing as a proactive measure in containing the pandemic coronavirus.

To this effect, it is pertinent however, to put forward that, more taxation laws on virtual and digitalized services should be made to cover all component parts of Non-Residential companies to remit taxes on services which were provided outside Nigeria, which the Company Income Tax Act deficiently provide, to address increasing demands of these services which materialized due to the pandemic.

Having established above, the ordeal of the pandemic coronavirus, it is important as a way forward to add both flesh and blood to this discuss, through an explanation of certain prospects which are derivable after the days of the pandemic.

In this regard, the stones of jobseekers recently employed which have been left unturned, since the outbreak of the coronavirus are likely to be address to expand employment opportunities once economic activities resumes, to bring the crippling economy of Nigeria back to its feet.

Without prejudice to other relief program already put in place, the Federal or State Government may improve efforts in enhancing the effectiveness of mechanisms of distributing relief packages to reach households that are worst-hit by the pandemic.

There is likelihood of the Government through the Federal Inland Revenue Services and the State Inland Revenue Services to waive payment of income tax by both personal or corporate bodies in the second quarter of year 2020, due to the fact the coronavirus had strike and injured income and profits of households and businesses.

Lastly, the decision of the Central Bank of Nigeria in January 2020 to increase the Cash Reserve Ratio (CRR) from 22.5 percent to 27.5 should be revisited in other to provide a liquidity atmosphere for banks in creating a credit to the private sector, on the verge of winding up due to the pandemicIn conclusion, it is religiously believe that the coronavirus is a reserved horse-whip of the Almighty God to beat the world to order in repentance from sins painted in different colouration between and among mankind. However, there is a need by the government at both State and Federal level to reinforce our health sector to the expected standards to face such pandemics eye-ball-to-eyeball.

In recommendation, it is pertinent, to highlight the fact that the Central Bank of Nigeria, should create additional liquidity in forex market, to formulate a swap instrument with the People’s Bank of China and the U.S Federal Reserve as was done in 2018, to enhance more liquidity of Dollar and yen, to financial institutions, businessmen, and of course exporters to serve as relief package for falling companies and businesses.