A Sense of Urgency: How COVID-19 Has Devastated Economic Activities in Nigeria.

 

The COVID-19 pandemic has led to unprecedented disruptions, affecting all markets and economies globally. Things will not be the same again, at least, for quite a while.

Nigeria faces a greater challenge than most from the Corona Virus pandemic as a result of being the largest economy in Africa( as been purported), with an estimation of 200 million population.

While there is an ongoing effort to curtail the spread of the virus, as we still hope and wait for a vaccine to be produced, the economic uncertainties and disruptions present a real threat. With this dangerous health emergency developing in the country, the economic impact of COVID-19 has been projected to be profound for Nigeria, especially with the fall in the price of crude oil (which has greatly affected the government revenue) and the general downturn in major sectors in the Nigerian economy.

Currently, the exportation of crude oil accounts for over half of government revenue and generates 87% of Nigeria’s foreign exchange. The collapse in oil prices by 60% since the start of the year to below $30 per barrel has affected government revenues, which could fall by as much as 45%.

The lack of a well-diversified economy, coupled with a weak healthcare system, pose challenges to the economy of Nigeria requiring urgent steps to be taken to avoid the deepening crisis. Several sectors of the economy have also been greatly affected, both in the formal and informal sector. 

Let us cursorily review a few issues.

Security

The advent of the pandemic has largely shifted focus away from our security challenges. While we celebrate the victories of our gallant men of the Nigerian Armed Forces, the increased rise and boldness of bandits and criminals need to be urgently addressed. These evil forces have seized the initiative and are entrenching themselves comfortably.

The government needs to address this matter urgently because, without security, every economic aspiration and effort will be futile. Our police need to be trained and properly equipped to meet the challenges presented. We cannot in good faith continue to accept the loss of lives and properties, nor be subjected to Mafioso styled ‘tax’ regimes in our own country.

..........................................To Be Continued