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Analysis: How Covid-19 Pandemic Crippled Nigeria's Economy

The year 2020 was terrible year for nations of the world because many things stopped working and it left huge negative impact on world's economy. Nigeria's economy is presently suffering from the aftermath of Covid-19 pandemic. In 2016, Nigeria entered her first recession in twenty-five years and this made Nigeria poorer between year 2017 to 2019. While the economy is showing potentials of rising, then Covid-19 pandemic halted the rise of the economy.

The reason Covid-19 pandemic affected Nigeria economy hugely is that the country is dependent on crude oil as her main source of revenue. So, the crash of crude oil prices throughout the world affected the country's economy as the country struggled with finances since all nations the world are on lockdown, this made it very difficult to find buyer for crude oil products. For instance, during the lockdown, United States of America reduced her oil importation from Nigeria by 11.67 millions barrels towards the last quarter of year 2020. Also, local oil production and consumption in Nigeria dropped drastically and this pointed Nigeria's economy at the wrong direction due to the fact that Nigeria is just rising above recession. The intensity of Covid-19 pandemic necessitate policies like lockdown and social distance. The covid-19 pandemic lockdown reduced the GDP of Nigeria by 23%.

The Covid-19 pandemic as revealed by the National Bureau of Statistics kept almost 42% of Nigerians out of job and this created difficulty in sourcing for money.

Aside from oil, Nigeria also earn income from tourism because Nigeria's landscape is beautiful enough to attract tourists from different part of the world. There are attraction like rocks, waterfallsZ beautiful beaches, amazing cultures and famous festivals but all these were put to halt as government implemented policies like lockdown and social distancing which all prevented foreigners from coming into the country.

Another area in which Covid-19 pandemic affected Nigeria's economy is the area of agriculture. Apart from oil, agriculture is another major part of Nigeria's economy. The agriculture has subcategories like fishing, crops production and livestock. As revealed by National Bureau of statistics, agriculture has the total of 28.25 percent in Nigeria's economy. This is amazing but agricultural contributions to Nigeria's economy was put on hold as a result of the pandemic. The closure of boarders and lockdown blocked the distribution chain. The restriction of distribution chain led to low production of agricultural products and consumption which affected Nigerians hugely as they could not feed them properly.

Also, due to the closure of many sectors in the country the covid-19 pandemic pointed the issue of unemployment and insecurity at Nigeria. Due to the restriction of movement, the living conditions of Nigerian was endangered and this led to cases of robbery because of hunger and anger. As opined by African Report in year 2020, the coronavirus came at the time in which Nigeria is facing various economic challenges.

Also, the manufacturing and trade sectors which contributed 14.69 percent to the country's GDP in 2019 as revealed by National Bureau of statistics was hugely affected by the restriction of movement because the means of selling finished good which serves as one of the major income to Nigeria's economy.

Likewise, covid-19 pandemic affected the entertainment industry of the country which also contributed to the nation's GDP. As at 2019, the entertainment and recreation industry's has a total of 2.89 percent to the to Nigeria's GDP but Covid-19 pandemic affected and returned everything to square one.

In conclusion, the COVID-19 affected every aspect of man's life and this is the major reason Nigeria economy is crippled with inflation at the moment. The effect of Covid-19 pandemic is felt by individuals and government of Nigeria.

Content created and supplied by: 247update (via Opera News )

Covid-19 Nigeria Pandemic United States of America


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