Covid-19 and its effect on the Nigerian economy

People build a nation and people build an economy. What this means is that once the general wellbeing of a group of people is threatened, it’s the ability to function effectively is questionable. We are having a glimpse of how disastrous this pandemic can be for the world if left unchecked.

Nigeria is a developing nation and is still recovering gradually from the economic recession of 2016 which was due to global oil price crash and insufficient foreign exchange earnings to meet imports. From the point when the first case of COVID-19 was discovered until when it began to spread wider, there has been a need to review and change earlier revenue expectations and fiscal projection. The oil price, for instance, is below $17 and it seems like it will go even lower.

The COVID-19 pandemic is also taking a toll on the employment rate. The last unemployment report released by the National Bureau of Statistics (NBS) ranks Nigeria 21st amongst 181 countries with an unemployment rate of about 23.1%, not forgetting that the nation has been rated the poverty capital of the world with approximately 87 million people living on less than $2 a day.

The pandemic may also lead to a fall in household consumption which will result from the partial or full restriction on movement (lockdown) like we have seen happening in Lagos, Ogun, and Abuja. This will cause people to buy only essential goods, leaving manufacturers of non-essential goods and services useless.

There is also the place of crumbling of wealth due to decline in assets like stocks and equity.

Having known all these, a greater responsibility is bestowed on us all to do all we can to make sure that we battle the COVID-19 virus together. Start by staying home to curb the spread, only then can we establish peace of mind in homes all across the nation. We are for a COVID-19 free Nigeria at Credit Direct but we cannot do it without you.

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