Well, I don't have to talk much about the Coronavirus itself, as almost every living human on earth knows about the virus already. According to news and press media, it was reported that the Coronavirus originated from Wuhan City in China. Although, different personalities and media outlets had attributed the cause of this outbreak to different reasons.
Some said the virus is the manifestation of an ongoing biological war, while some other blamed the pandemic on the invention of the 5G network. Some religious leaders even went far to tag the pandemic as a punishment from God on humanity.
Whatever the case may be, it doesn't change the fact that humanity is placed on global lockdown, coupled with the threat to human existence, unless a vaccine is developed soon.
Let's quickly take a brief insight into how the Covid-19 pandemic will affect the Nigerian economy. Fore and foremost, let me clear your air of doubt that this pandemic has no positive benefit to Nigeria, and whole world at large. Even if the virus was man-made as alleged, I'm quite sure the perpetrators of this plague will be regretting their misdeed, unless they have a sinister motive behind it.
The most drastic effect of this pandemic on the Nigerian economy is the rapid drop in price of crude oil, on the International Martket. Recall that before the discovery of Covid-19, a barrel of crude oil (159 litres) is estimated to be around $75 to $80. Unfortunately, the price per barrel is not even up to $5. The implication is that the Federal Government revenue will drop, as well, as crude oil has been the major source of foreign exchange into the national bursary or purse.
To the detriments of the average Nigerian, lesser revenue into the government purse mean lesser standard of living, because the government will have lesser funds to execute projects.
Secondly, another effect that will surely be cushioned by the Covid-19 pandemic is the loss of jobs, all over the federation. It's already happening as some industries and firms are already laying off their employees, in reaction to the harsh economic conditions this plague has subjected the world to.
The rate of downsizing won't even reduce anytime soon, because the aftermath of this pandemic is the expected economic recession on a global scale. Therefore, more and more employees will be laid off. It's just so unfortunate.
Thirdly, a subtle effect that this Covid-19 pandemic will ignite is the reduction in the Gross Domestic Product (GDP) of Nigeria. Although, an average Nigerian doesn't know what GDP is, or how it affect their lives.
Well, let me educate you on this. The GDP is an economic indicator that reveals the overall level of goods and services that are being produced in a country. It's a coefficient that is usually taken into consideration, when estimating the the economic condition of any country.
Back to the main discussion, the Covid-19 pandemic made most governments to issue lockdown directives to their respective citizens, in a bid to curb the spread the virus. This lockdown has reduced the level of industrial production all over the nation, as most firms and companies are shut down, in obedience to the lockdown order. In summary, reduced and retarded production processes mean reduced GDP level for the Nigerian economy. Do you see how it works?
It's an unquestionable fact that this pandemic is doing more harm to the Nigerian economy. However, I believe this pandemic will end anytime soon, as the search for a permanent cure is ongoing, all over the planet.
Finally, I'll advise the FG to diversify our economy as this pandemic has washed our dirty linens on public, with the reduction of oil price. Once this pandemic is over, measures should be taken to invest in other sectors of the Nigerian economy such as agriculture, mining, manufacturing, health and so on. The production and consumption of locally made products should also be encouraged. It'll help us to survive harsh conditions, when the global economic recession finally commence.
What are views about this? How do you think the Covid-19 pandemic will affect the average Nigerian. Let's hear you in the comments section.
Stay home! Stay safe!!
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