COVID-19

COVID-19

Our COVID-19 column provides insights from experts on the impact of the coronavirus on Nigeria

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Nigeria's economic response to COVID-19

The Newsroom

The Newsroom

The Editorial is the purest expression of Stears' peculiar editorial stance. It analyses issues, drawing on theory and empirics to outline the competing assumptions for issues; each time drawing conclusions that can be elicited, so as to give a comprehensive yet indefinite picture.

This is a previous Stears Business Newsletter, updated on the 25th of March.

 

In case you missed the headlines, all roads are leading to a coronavirus-induced global recession. According to estimates, China’s economy is experiencing its worst downturn since the 1970s. It shrank by 13% in the first two months of the year. The scene across the globe is an empty Piccadilly Circus in London, barely any cars moving in Rome and empty factory floors in Asia. 

As for financial markets, the picture is red. 

Negative records have been the norm. Oil prices hit a 17 year low, the Dow Jones - an index for the largest US companies - had its worst day since 1987, and manufacturing expectations dropped faster than ever in Germany and China.

The global situation is clear and it’s already had its impact on Nigerian trade and oil earnings. However, regardless of the global situation, matters get worse when the virus lands on a country’s soil. It’s not just about economic indicators anymore, business and consumer behaviour change drastically. Wherever COVID-19 has travelled, economic slowdown has followed. 

Last week, Nigerian businesses and consumption were relatively normal but things changed quickly this week. With 51 cases and social distancing policies being announced, the economy is going to slow. 

So how should the government keep the economy afloat? Well, let’s see what we can learn from the rest of the world. 

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