Economic Importance of Covid19 (Coronavirus) in Nigeria

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INTRODUCTION

1.1BACKGROUND OF THE STUDY

Coronavirus disease (COVID-19) is an infectious disease caused by a new virus. The disease causes respiratory illness (like the flu) with symptoms such as a cough, fever, and in more severe cases, difficulty breathing. You can protect yourself by washing your hands frequently, avoiding touching your face, and avoiding close contact (1 meter or 3 feet) with people who are unwell.

The 2019–20 coronavirus pandemic has had far-reaching consequences beyond the spread of the disease and efforts to quarantine it. As the pandemic has spread around the globe, concerns have shifted from supply-side manufacturing issues to decreased business in the services sector. Supply shortages are expected to affect a number of sectors due to panic buying, increased usage of goods to fight the pandemic, and disruption to factories and logistics in mainland China. There have been widespread reports of supply shortages of pharmaceuticals, with many areas seeing panic buying and consequent shortages of food and other essential grocery items(.wikipedia.org).

Nigeria operates a largely mono product economy solely dependent on crude oil. Past and even the present government had on many occasions mouthed the need to take the economy out of dependence on oil. With the present economic reality, workers’ salaries may be in jeopardy. On Wednesday last week, members of the Federation Accounts Allocation Committee (FAAC) could not agree on the amount presented for sharing. An official hinted that members of the committee could not agree on the amount presented for sharing by the revenue generating agencies. The amount presented was far below what the members were expecting to be shared by the three tiers of government. This brings to memory the experience of 2016 recession when 27 states were owed workers and pensioners salaries and entitlements ranging from one to 36 months. A 2017 survey showed that many states defaulted in the payments of pensions and gratuities, with Imo, Taraba and Niger states owing pensioners two to three years in entitlements. The Nigerian government after a cabinet meeting on Wednesday announced a cut in its capped gasoline pump prices to allow the cost of fuel in the country reflect the recent fall in global oil prices. President Muhammadu Buhari approved the fall in gasoline pump price from 145 Naira to 125 Naira and also introduced a “modulation mechanism” that will allow a reduction in petrol costs if there is a decline in crude prices Timipre Sylva, minister of state for petroleum, issued a statement saying Nigerians should benefit from falling fuel costs, which were a direct effect of the crash in global crude oil prices. “This action is being taken to cushion the economic impact of COVID-19 on our people,” he said. Nigeria’s major source of revenue and foreign currency has been shaken by the global effect of the coronavirus. Up to 90 percent of the country’s foreign exchange earnings are generated from sales of oil. Prices for basic food staples are rising in Nigeria, as shoppers stock on essentials and sellers seek profits amid the coronavirus scare. people are calling for governments to intervene. the price hike is due to a number of reasons. Sellers are trying to profit from the crisis. There is also an increase of demand owing to panic-buying by people who don’t know what tomorrow will bring. “Thirdly, it is connected to the global trade environment. Many commodities come from China and since the Chinese market was heavily affected since the beginning of the year, traders don’t travel to China anymore

The gloomy picture is not just in Nigeria. Other African countries suffer the same, as well as Middle-East, Asian and European countries. Based on this background the researcher wants to investigate the economic importance of coronavirus in Nigeria

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