The Effect of COVID-19 On Nigeria’s Economy -By Ifeoluwa Adebayo

Coronavirus is a deadly virus that causes illnesses such as Severe Acute Respiratory Syndrome (SARS) and Middle East Respiratory Syndrome (MERS) according to World Health Organization (WHO). The virus is found to be in animals and can be easily transmitted to humans. Coronavirus is actually named COVID-19 as a disease and SARS-COV-2 as a virus. A report was made that the virus originated from Wuhan city in China, which started last year in December. Scientists emphasized that the sources of this virus are bats, snakes, and rats.

The virus actually spread from China to other countries in the world. The symptoms of Coronavirus include; fever, tiredness, dry cough, and difficult breathing. People may be sick for one to fourteen days, before developing symptoms. But infected people show symptoms within five to six days. Nigeria recorded her first case on the 27th of February, 2020. Due to the rise in cases of COVID-19, this has led to lockdown in some states in Nigeria causing an effect on Nigeria’s economy.

First and foremost, it is important to note that due to the outbreak of this virus, there has been a lockdown of almost all sectors of the economy in Nigeria. As a result, this has led to a decrease in the price of a barrel of crude oil to $19.00 as of 31st March 2020. There is a tendency that once the pandemic is over, there might be a recession. Aside from that, economic analysts have proposed an unemployment increase from 35-45% in the next few months due to the inability of industries to handle the welfare of their staff. Thus, the laying off of workers is inevitable.

Another effect, is there will be a food shortage in the country of this pandemic lingers for a long time. Based on the report made, there has been the release of tons of grains in thousands for distribution to reduce the poverty of hunger. Hence, due to the “stay at home” order by the federal government, the cultivation of crops and rearing of animals will be greatly hampered.

Inflation is another major effect which is seriously affecting Nigerians. Due to COVID-19, the prices of goods in the country have been inflated. 60% of Nigerians are unable to buy foodstuffs at the market. This has caused daylight robbery in some states. Many Nigerians are underfeeding, many depend on daily income like barbers, traders, hawkers, etc. It will be difficult for such people to survive at the moment. The economic consequences of COVID-19 are violently at its peak.

It has also placed restrictions on international borders. Goods are no longer imported from or exported to other countries. The ones that are smuggled in are very expensive because of the high tariff costs imposed on them. Foreign investment is very limited due to the lack of inflow of foreigners.

If this pandemic lingers on, there would be an inability to pay salaries, pension, and gratuity. Towards the end of February and early March, the ministry of finance said that salaries for March would be paid, but subsequent months may not be feasible. From this statement, it shows that many civil servants may not be paid salaries of this pandemic continues. This will affect Nigeria’s economy because if salaries can’t be paid, pension and gratuity may have to wait even longer if there could be any hope for them if they can get money.

In conclusion, Nigeria’s economy may be slipping towards recession and might receive the worst hit, if our leaders are not careful. It is only hoped that serious lessons would be learned when Nigeria eventually recovers from this pandemic.