The Impact of Coronavirus on the Nigerian Economy

Since the hit of the novel Coronavirus pandemic which originated from Wuhan city in Hubei Province, China the pandemic has however spread across the world leaving drastic and devastating effects on different sectors that contributes to the economical growth in these countries even apart from its health effects.

The Nigerian economy which is the largest in Africa, has also suffered drastically from the impact of the pandemic, as it is not as attractive as it was. The Nigerian economy comprises of economical activities which includes, agriculture, crude oil exportation, mining, e.t.c . And all of these sectors have been severely battered as a result of the pandemic.

The Nigerian economy which was once filled with commercial activities has witnessed a sharp decline in revenue. For instance, the revenue gotten from Crude Oil which contributes more than 60% of the nation’s revenue, has reduced as a result of the closure of the entrances of the crude oil just because of the lockdown and termination of flights appointment.

In addition, the weight of a country’s commercial activity depends on the labour force and strength. However, in Nigeria, 27% of Nigeria’s labour force that is over 21 million Nigerians have been rendered unemployed because companies and private organisations found it hard to operate during the lockdown and these companies had to close for a while, and some organisations even fell into a pit of huge debts and the workers employed in these companies had to lose their job.

It is evident that all these circumstances would take a negative, disastrous and despicable toll on the commercial activities in Nigeria, thereby making the Nigerian economic activities gradually becoming redundant.

Hence, the number of unemployed Nigerians combined with lower volumes of oil exports brought a sharp drop in Nigeria’s gross domestic Product (GDP) due to a steep in economic activities after the lockdown in April, 2020.

With regards to the unpleasant circumstances that befell the Nigerian economy, the World Bank has predicted that Africa’s most populous country and largest economy is set for her worst recession in four decades. And there is also just a little sign of a quick turnaround in Nigeria’s economic woes.