The continuous drop of oil price in the global market alongside the rapid rise of COVID-19 Virus would definitely take a heavy toll on the country’s economy. This has been a major source of concern to many Nigerians especially with the absence of reassuring words from the federal government.
The outbreak of the virus has resulted in the closure of factories in China, one of Nigeria’s largest trading partners, and a reduction in imports, global travel, and cancellation of foreign exchange deals, business travels, conferences, sporting events, among others. This has forced a slowdown in the demand for crude oil. With the massive decline, Nigeria economy is
placed at a disadvantage.
Since the start of the year, Nigeria has seen its oil price drop by 50%. Many are predicting a prolonged economic recession especially with the rapid rise of the pandemic in Nigeria.
Although Nigeria was among the last few countries to record cases of the virus, 135 cases were confirmed in 12 states within a few weeks.
Restrictions
With the rapid rise of the pandemic, movement have been restricted across the country to contain the spread of the virus. Recently, the federal government ordered the closure of borders against travelers
from other countries.
On Monday, President Mohammed Buhari banned the movement in Lagos, Abuja and Ogun state to contain the spread of the virus. State governments are also taking precautionary actions to prevent the spread
of the disease in Nigeria.
All movements in these states have been prohibited for 14 days. Citizens have been ordered to stay at home. Authorities have postponed all inter-state travels and non-essential businesses and offices within these locations halted.
State governments are also taking precautionary actions to control the spread of the Virus.
On March 29, Osun declared that movement within the state will be restricted for two weeks. In the same vein, the Kaduna State Government also quarantined the entire State, ordering every resident to stay
indoor indefinitely.
All international passenger flights into Lagos' Murtala Muhammed International Airport (LOS) and Abuja’s Nnamdi Azikiwe International Airport (ABV). However, this lockdown did not apply to hospitals and medical institutions as well as commercial establishments including food, petroleum, electricity, and private security.
Hunger on the Rise
While measures to control the continuous spread of the virus have intensified, the harsh economy takes a heavy toll on many citizens.
The sudden hike in the price of food items and other essential commodities have been recorded across the country. Panic buying among citizens has led to the scarcity of basic commodities as well.
The current crisis will most likely hit citizens hard especially with the increasing rate of hunger. Before the outbreak of the pandemic, Nigeria was designated the poverty capital of the world. An estimated 87 million people live below $1.90 per day.
The 87 million citizens living in extreme poverty represent nearly 50 percent of its population. With the measures taken by the government to curb the rise of COVID-19 Virus, this figure is set for a sudden
increase.
According to the Director-General of the Lagos Chamber of Commerce and Industry, Dr. Muda Yusuf, the performance of key sectors that have the capacity to facilitate economic diversification is largely constrained,
“The global supply chain has been deeply disrupted as China, which is the second-largest economy in the world is a major supplier of inputs for manufacturing companies around the world, Nigeria inclusive.
“Many manufacturers and service providers in the country are already experiencing an acute shortage of raw materials and intermediate inputs. This has implications for capacity utilisation, employment generation and retention and adequacy of products’ supply to the domestic market, ” he said.
Nigeria operates a mono-product economy which solely depends on crude oil.
Past and even the present government had on many occasions emphasised the need to take the economy out of dependence on oil. Now the chicken has come home to roost. With the present economic reality, poor conditions and hunger are set to rise.
Recorded Cases
The first case of the virus was confirmed 37 days ago. The case is an Italian citizen who works in Nigeria. He returned from Milan, Italy to Lagos and was confirmed positive by medical experts.
On Monday, 20 new cases of the virus were recorded, raising the total number of confirmed cases to 131. Most cases had traveled history to high risked COVID-19 countries while the others were close contact with an infected person.
Data from NCDC revealed that Lagos state leads with 81 cases, followed by 25 in Abuja, 3 in Ogun, 3 in Kaduna, 8 in Oyo, 2 in Edo, 2 in Bauchi, 2 in Enugu and 5 in Osun. Rivers and Benue state have one case
each. Only 2 death cases have been recorded.
- Breaking: Ohanaeze President General, George Obiozor, confirmed dead - December 28, 2022
- US to support NDLEA on improved intelligence gathering capacity - December 27, 2022
- Why diversified HIV/AIDS prevention tools matter for women - December 26, 2022