Your Nigerian Economist

Your Nigerian Economist

Inclusive growth lies at the heart of Nigeria's development. From macroeconomic policies to energy resources; trade to development topics, Your Nigerian Economist engages the citizenry in discussing relevant economic issues and proffers solutions towards a fairer, more developed economy.

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The impact of COVID-19 on Nigeria's economy

Mma Amara Ekeruche

Mma Amara Ekeruche

Amara works as a Research Associate at the Centre for the Study of the Economies of Africa (CSEA). She holds a BA (First Class) in Economics.

Global economies are now in a similar state as their public health services - on emergency, no thanks to Coronavirus.

Reports show the world is likely in a recession. Analysts at the UN say the world's $80 trillion economy will decline by $1 trillion to $2 trillion - a close to 3% contraction. 

Nigeria, like most countries, will be hit on two fronts. Directly as a result of cases in the country, and indirectly, due to our closeness with - badly hit China, our number one infrastructure financier and trading partner,  plus our reliance on global oil prices.  

It is hard for one number to accurately capture the impact, but considering the uncertainties, such as how long the outbreak will last, the effectiveness of current policy measures, and how people and businesses will respond to these measures, there are certain impacts we should understand.

 

Countrywide effect

The price of oil hit its lowest level in 17 years, declining from $59 to $28 per barrel within a month as a result of lower demand and a lack of coordination between OPEC and Russia to reduce supply.  

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