Nigeria’s effort to rapidly identify and contain the spread of the index case of COVID-19 may have been successful – with no new case as at March 2 – but as the disease spreads to over fifty countries, the global economy is panicking and some experts say this is not looking good for many countries, including Nigeria. It is a typical case of ‘when China sneezes, global business catches a cold.’
The wake of coronavirus in China doomed businesses in the world’s second largest economy. Business hubs in several Chinese cities had to close. The country which is reputed to play key role in global manufacturing had its economy shut down in order to contain the spread of COVID-19, causing an interruption in the supply of materials for many industries such as electronics, pharmaceuticals, and automobile.
China’s supremacy of the global economy exposed with COVID-19’s outbreak
“To be frank, everybody will be impacted by this, it’s a matter of degree. The key is who will recover faster and how people respond to the crisis will be even more important than the crisis,” Chan Chun Sing, Singapore’s Minister for trade and industry told CNBC.
The disease outbreak has revealed the dependency of the global economy on China and the absence of diversity in global supply chain. For instance, America’s tire manufacturers need valve supply from manufacturers in China to supply tires to car plants in Germany. Hyundai, a car manufacturer in South Korea, had to suspend operations because it could not get a key part from China. The ripple is also felt by tech companies such as Samsung, Apple and Sony who still depend on China for sensors and smartphone screen. Procter and Gamble’s executive, Jon R. Mueller said the company’s biggest market in terms of profit and sales was China and that it “relies on 387 suppliers in China, each facing difficulties in resuming.”
Europe is not insulated from the shock that is engulfing the global economy. COVID-19 is spreading across Europe. With 1,576 cases, Italy accounts for the largest in Europe and third largest in the world. Many firms in Europe are saying that the Coronavirus is affecting their operations, with some laying off workers because sales and profit had slowed down while others are temporarily shutting down factories to prevent the spread of the disease. Diageo, the biggest producer of whisky said that the close down of restaurants and bars in China because of COVID-19, could dip its profit by up to 200 million pounds.
Most African countries depend on Asia, Europe and North America for economic survival. Nigeria, Africa’s largest economy is mainly dependent on exporting raw materials to Asia, Europe and North America and importing finished goods. One of such export is crude oil. But global oil price is falling because of over-production combined with reduction in global oil demand as a result of COVID-19. An OPEC meeting in Vienna, this week, may see a discussion on coordinated production cut to prevent prices from dropping further. The speculated move by OPEC is what many countries need considering that their economies are dependent on oil. Nigeria is gradually getting over the economic recession of 2016, which some people say was compounded by the fall in global oil price.
With companies in Asia, especially China, struggling to restart operations after weeks of shut down and European firms bracing for the impact of the continuous spread of COVID-19 in the continent, Nigeria’s non-oil export is faced with uncertainty. For instance, according to Nigeria Bureau of Statistics, the sub-Sahara African country exported most of its agricultural products to Asia and Europe in Q3 of 2019, valued at N20.5 billion and N18.0 billion respectively. If the spread of the disease does not slow down, Nigeria’s non-oil export is likely to take a hit.
While some countries may not experience COVID-19 outbreak, every country will likely feel the heat because economies have grown interconnected. Businesses have been urged to prepare for disease outbreak and a good place to start is diversifying supply chain and expanding market.
- The Great Divide – How City Boys & Village Boys Mirror Nigeria’s Deepest Political Fractures - February 25, 2026
- China Dazzles the World with Its Spring Festival - February 20, 2026
- Things Are Not the Same Without Osinbajo – Makinde - January 25, 2026