Aftermath of the COVID-19 pandemic on Nigeria’s economy

Hawa Umoru

The Covid-19 pandemic has undoubtedly hit the world economically, and Nigeria is not left out; from government to individual businesses, the total lockdown had some striving businesses shut down, while a good number of workers have been laid off.

A report carried out by CNN talked about the US being in recession. If a developed country like the US can fall into recession because of the epidemic even when it was earlier reported that 2.5 million jobs were gained, I wonder what will be the face of the Nigerian economy.

With this in mind, bear in mind, the Nigeria situation, where jobs have always been a problem for its citizen and new ones are yet to be created. Millions of people have fallen into poverty, not because they are lazy but because of the lockdown and social distancing, as it did not only affect the oil market but deeply affected the transportation industry, trade sector etc. This is a major factor of recession.

When there is a drop in income, employment, manufacturing and retail sales, recession quietly sets in. We all know what it is like to be in recession as we experienced it a few years back. What can be done to help uplift our economy before we fall fully into recession?

The first thing to be tackled towards curbing the impending downturn of Nigeria’s economy is the power sector. It is an obvious fact that the cost of running a manufacturing business is something that deserves urgent attention.

When there is adequate supply of energy, it will aid production of goods as this will reduce the cost of running business and will in turn increase the development of the manufacturing sector.

Another aspect is diversifying the economy. This has always been said on many opinions but has not really been taken serious. Nigeria is blessed with not just natural resources but manpower. We could invest in Tourism, Agriculture, Exportation of our locally made goods etc.

When all these are done diligently and sincerity, without corruption, in the coming years, Nigeria may be ranked amongst the developed Nations of the world.

However, if they are not taken seriously, the reverse may be the case, just as the Vice President has said while presenting the post Covid-19 Economic Sustainability Plan”. At least 39.4 million Nigerians are likely to lose their jobs by the end of the year 2020, if the government “fails to take prompt preemptive measures.”