The pandemic caused by the Covid-19 is undoubtedly one of the most critical and serious global economic crisis that has happened since the Great Depression in 1929. This crisis has changed the structure of the global economy.
As for Nigeria, which is the most populous country in Africa and one of the two largest economies, the pandemic has worsened the poor economic situation. Before the outbreak of the pandemic, Nigeria had already experienced a severe economic crisis internally. The factors of the crisis include increasing public debt, high unemployment, falling oil export revenues per currency devaluation e.t.c.
The negative impacts or effects of the pandemic cannot be ignored in all countries in the world and most especially in Nigeria where their economic growth is yet to be stable and getting worse every day after the Covid-19 incident. Below are some of the impacts of the Covid-19 in Nigeria
1. The Decline in Global Economic Activity
The peak of the pandemic caused a sharp drop in the price of crude oil, Nigeria’s main export commodity, which accounted for 94% to 96% of the total income of foreigners’ centres and 60% of government revenue.
2. Low Export Revenues
This has also led to a shortage of foreign exchange and a sharp depreciation of the local currency, which has depreciated by 35% relative to the U.S. dollar in the past eight months.
In the past few months, the inflation rate has been rising; as of September 2020, the average inflation rate was 13.7%, while the average food inflation rate during the same period was 16.66%, the highest in 30 months.
4. Depreciation of the Currency Value
The weakness of Naira and poor crop yields have caused food prices to rise, causing difficulties for ordinary people, while high prices have caused limited access to other basic commodities, making the situation of the poor worse.
5. Technology Issue
During the COVID-19 problem, education is further affected because pioneers and providers of education and education services were no longer carry with them as usual. Increasing use of technology to maintain education brings both positive and negative effects on both Lecturers or Teachers and students, where students who hardly get their tuition fee paid are forced to get a laptop for the online lecture and examination.
6. Long Term Lock-down
Finally, the government’s initial attempts to strengthen the spread of the new coronavirus for long-term lock-in and social isolation have also caused serious economic pain to poor and informal sector workers who depend on their daily income for their livelihoods.
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