We all know what the World as a whole is facing during this pandemic, including the 10 years old child is experiencing the worst part of Coronavirus in Nigeria.
But before we look into Nigeria economy downfall, let’s see how this pandemic started and where it is originated from, according to research the coronavirus began in Wuhan, Hubei province, China. Resident who lived in Wuhan had some link to seafood and live animal market.
The virus was contacted through animal and since then it has been spreading from one continent to another, and there have been over millions cases in the world.
The coronavirus entered Nigeria through an infected Italy man who came in contact with a Nigeria citizen then the virus began to spread from there.
Let’s look at some impart of coronavirus over Nigeria economy
The Covid-19 pandemic affected the Nigeria economy in so many ways. One, the spread of the virus give room for socio-distancing which led to shutdown in Nigeria. It affect the Financial Market, Corporate Offices, Business and Events.
Two, the rate at which the virus was spreading, and the heightened uncertainty about how bad the situation could get, led to flight to safety in consumption and investment among consumers and investors.
The Covid-19 pandemic affected borrowers’ capacity to service loans, which gave rise to NPLs that depressed banks’ earnings and eventually impaired bank soundness and stability. Subsequently, banks were reluctant to lend as more and more borrowers struggled to repay theloans granted to them before the Covid-19 outbreak.
There were oil demand shocks which was reflected in the sharp decline in oil price. The most visible and immediate spillover was the drop in the price of crude oil.
During the pandemic, people were no longer travelling and this led to a sustained fall in the demand for aviation fuel and automobile fuel which affected Nigeria’s net oil revenue, and eventually affected Nigeria’s foreign reserve.
There were supply shocks in the global supply chain as many importers shut down their factories and closed their borders particularly China. Nigeria was severely affected because Nigeria is an import-dependent country and as a result Nigeria witnessed shortage of crucial supplies.
Meanwhile, Nigeria is facing some economy issues before the pandemic outbreak.
- A weak and underdeveloped digital economy
- Lack of social welfare in the country
- The poor public health infrastructure
- Unemployment in the country
- Lack of proper educational sector
This analysis is recent economic crisis in Nigeria. it showed the spillover of Covid-19 pandemic into Nigeria with declining oil price, which were external shocks caused the economic downfall. The scope and severity of the economic crisis is a clear signal that growth and development reforms are needed in Nigeria.