ECONOMIC IMPACT OF COVID 19 ON THE DEVELOPMENT OF KADUNA STATE NIGERIA
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ECONOMIC IMPACT OF COVID 19 ON THE DEVELOPMENT OF KADUNA STATE NIGERIA
Chapter one
INTRODUCTION
1.1 Background of the Study
In his message to Africa, World Bank Vice President Hafez Ghanem stated, “The COVID-19 pandemic is testing the limits of societies and economies around the world, and African countries are likely to be hit especially hard.”
Many nations are becoming increasingly concerned about the risk of a global economic recession. Economic and social change analysts have made forecasts about the impact of the novel lethal virus known as the 2019 Coronavirus (COVID-19) pandemic.
According to the World Bank Group (April, 2020), economic growth in Sub-Saharan Africa is expected to fall from 2.4 percent in 2019 to -5.1 percent in 2020, resulting in the region’s first recession in 25 years, with the three largest economies of Nigeria, South Africa, and Angola bearing the brunt of the impact.
Most developing nations’ economies see fluctuations in Gross Domestic Product (GDP), therefore each epidemic has an impact on the country’s economic strength.
When a nation experiences an epidemic illness outbreak, its government implements economic strategies. The worldwide pandemic has a negative impact on macroeconomic policies and general equilibrium for citizens and governments in any country.
According to Madhav et al. (2018), a pandemic is a large-scale outbreak of infectious disease that can significantly increase morbidity and death across a vast geographic area while causing major economic, social, and political upheaval.
They also said that pandemics’ livelihoods have improved over the last century as a result of continued global travel and integration, urbanisation, land use changes, and increased exploitation of the natural environment.
Over the years, pandemic outbreaks have instilled fear in Nigerians’ minds on social, religious, and economic levels. This has resulted in citizens hardly feeding compared to the pre-pandemic outbreak. Nigeria has had multiple outbreaks of dangerous diseases, which have taken lives, caused terror, and harmed the economy.
Smallpox, which affected the people of Epe in Lagos State between 1897 and 1917; leprosy, which affected a number of lives between 1857 and 1859; this led to the establishment of the first hospital in Nigeria by Reverend Father Coquard of the Catholic Church in Abeokuta; and the Influenza pandemic, which took place between 1918 and 1919 and was caused by an H1N1 virus of avian origin, which claimed a total of at least 50 million
Another epidemic outbreak is the LASSA illness, which is caused and disseminated by the faeces and urine of multimammate rats Mastomysnatalensis. The illness first appeared in the 1950s and then again in 2018, killing approximately three people (Sandra, G, and Charles, 2020).
Another outbreak, known as the Ebola virus, took place in 1976. The virus is thought to have no specific cause, but experts believe it is animal-borne, most likely from bats; the disease later occurred between 2014 and 2016, killing approximately 8 people (World Health Organisation, 2020).
Other pandemics in Nigeria include cancer and HIV/AIDS. It is no longer news that epidemics and pandemic outbreaks have an impact on Nigeria’s economy.
According to David and David (2006), GDP per capita does not provide a complete picture of the economic benefits of better health. They went on to say that health improvements reduce mortality, increase population size and productivity, and, conversely, decrease the population size of any nation.
When the value of extra lives gained as a result of health improvements is considered, the economic impact of health improvements will be far bigger than the effect on per capita GDP alone (Bloom et al, 2006).
According to an African Union (2020) report, the World Health Organisation (WHO) proclaimed a pandemic on March 11, 2020, and the novel lethal disease, Corona Virus 2019 (COVID-19), has become a worldwide emergency due to its impact on the whole world population and economy.
The paper included a scenario simulation by the International Monetary Fund (IMF) of global growth falling by 0.5 percent in 2020. The investigation also identified several more sources anticipating a decline in global growth as a direct result of the COVID-19 epidemic.
When the direct and indirect repercussions of the crisis are taken into account, the global economy may experience an economic recession in the first half of 2020.
While acknowledging that this emerging pandemic is moving slowly throughout the African continent, international organisations have paid less attention to the economic impact on specific African countries. Indeed, Africa is not immune to COVID-19 (African Union Report, 2020).
This research examines the impact of the new Coronavirus (COVID-19) on the growth of Kaduna State, Nigeria.
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