ECONOMIC IMPORTANCE OF CORONAVIRUS IN NIGERIA
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ECONOMIC IMPORTANCE OF CORONAVIRUS IN NIGERIA
ABSTRACTS ON THE ECONOMIC IMPORTANCE OF CORONAVIRUS IN NIGERIA
This investigation focused on the coronavirus’s economic significance in Nigeria. Essentially, the initiative for economic diversification must be led by the Nigerian government.
It is one realistic strategy to navigate the current economic instabilities and uncertainties. The COVID-19 pandemic’s effects should also show Nigerian economic managers and politicians that their monolithic, one-track reliance on oil is failing.
It is important to intensify efforts to diversify into new industries, such as solid minerals, manufacturing, and services. The pandemic is also being used by vendors to raise product prices. The study’s findings and recommendations were published.
INTRODUCTION
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
A novel virus called COVID-19 causes the contagious disease coronavirus disease. The condition results in a respiratory illness (similar to the flu) with symptoms like a cough, a fever, and, in more serious cases, breathing difficulties.
You can safeguard yourself by routinely washing your hands, refraining from touching your face, and keeping your distance (1 metre or 3 feet) from sick people.
Beyond the spread of the illness and containment attempts, the 2019–20 coronavirus pandemic has had far-reaching effects. Concerns about decreasing revenue in the services sector have taken precedence over supply-side manufacturing problems as the epidemic has expanded around the globe.
Due to panic buying, increased consumption of commodities to combat the pandemic, and disruptions to manufacturers and logistics in mainland China, supply shortages are predicted to impact a number of industries.
There have been numerous reports of pharmaceutical supply shortages, with panic buying in many regions leading to shortages of food and other basic grocery goods (.wikipedia.org).
Nigeria runs an economy that is mostly dependent only on crude oil. The necessity to wean the economy off its reliance on oil was frequently repeated by previous administrations and even by the current administration. The salaries of employees may be in peril given the current economic situation.
The Federation Accounts Allocation Committee (FAAC) members were unable to reach consensus on the amount offered for sharing on Wednesday last week. An official made the suggestion that the committee’s members couldn’t agree on the amount that the revenue-generating organisations had offered for splitting.
The amount offered was far less than what the members had anticipated the three levels of government to split. This reminds me of the 2016 recession, during which 27 states owed workers’ and retirees’ wages and pensions for a period ranging from one to 36 months.
Imo, Taraba, and Niger states owe retirees two to three years’ worth of entitlements, according to a 2017 survey that revealed numerous governments have problems paying pensions and gratuities (https://tribuneonlineng.com).
Following a cabinet meeting on Wednesday, the Nigerian government approved a reduction in its restriction on petrol pump prices to allow the cost of fuel in the nation to reflect the recent decline in global oil prices. President Muhammadu Buhari approved the decrease in the price of fuel at the pump from 145 Naira to 125 Naira.
He also implemented a “modulation mechanism” that will permit a decrease in the price of petrol in the event that crude oil prices plummet. Timipre Sylva, Nigeria’s minister of state for petroleum, said in a statement that the country’s citizens should profit from lower fuel prices, which are a direct result of the collapse in the price of crude oil around the world.
He declared, “This action is being taken to mitigate the economic impact of COVID-19 on our people.” The coronavirus’s widespread impact has affected Nigeria’s main source of income and foreign currency. Oil sales provide for up to 90% of the nation’s foreign exchange profits (http://venturesafrica.com).
In Nigeria, prices for basic food staples are increasing as consumers stock up on necessities and vendors try to make money amid the coronavirus panic.
Government intervention is being demanded by citizens. There are several causes for the price increase. Sellers are attempting to make money off the problem.
Demand has also increased as a result of consumers buying in a panic since they don’t know what tomorrow will bring.Thirdly, it has ties to the world trade scene.
Since a lot of commodities originate in China and the Chinese market has been severely impacted since the start of the year, traders no longer visit China (https://www.dw.com/en/price-hike).
Not just in Nigeria is the situation bleak. The Middle East, Asia, and Europe all have the same problems as do other African, Asian, and European nations. Based on this context, the researcher intends to look into the coronavirus’s economic significance in Nigeria.
STATEMENT OF THE PROBLEM
The COVID-19 has also had an impact on the global demand for oil due to the slowdown in the world economy and the lockdown in several nations, like Italy, Spain, and the majority of the Eurozone economies as well as Nigeria in particular.
More than 1 million less barrels per day were lost during the recession of 2007–2008 due to the fall in oil demand, according to estimates. Additionally, this is happening at a time when Russia and the OPEC cartel, two major participants in the global oil business, are at odds over the choice to reduce output.
The clear-cut oil price war that has broken out between these two major players on the world oil market might have far-reaching effects on the oil price, which has already begun to fall.
Impacts and ramifications may differ depending on the industry. The effects of the pandemic on international travel, for instance, have an impact on the global aviation and tourist industries.
Cruise lines, hotels, and other hospitality businesses are experiencing a reduction in demand and guest attendance as consumer discretionary spending keeps falling.
At the same time, prices in Nigeria, particularly for food, have climbed significantly since the coronavirus outbreak. In light of this context, the researcher wishes to look into the coronavirus’s economic significance in Nigeria.
OBJECTIVES OF THE STUDY
The study’s aims are;
To determine whether the coronavirus affected the Nigerian economy
To determine if the introduction of COVID-19 and its rising incidence in Nigeria have necessitated a thorough assessment and revision of the earlier revenue forecasts.
To determine whether vendors are inflating the price of goods using the coronavirus
To determine the effect of the coronavirus on the economy of Nigeria
RESEARCH QUESTIONS
Did the Coronavirus affect the Nigerian economy?
Did the COVID-19 outbreak and its rising incidence in Nigeria necessitate a thorough evaluation of and modifications to the initial income projections?
Are retailers exploiting the coronavirus to raise the cost of goods?
Does the coronavirus have any effect on the economy of Nigeria?
SIGNIFICANCE OF THE RESEARCH
Students and the general public will find the study to be of great importance. The study will provide a thorough understanding of the coronavirus’s economic significance in Nigeria.
The study will look into whether traders are using the coronavirus to boost sales in Nigeria. It will also reveal whether the COVID-19’s emergence and rising incidence in Nigeria have necessitated a thorough evaluation and revision of the earlier income forecasts. The paper will also be used as a resource by other scholars who pursue relevant studies.
SCOPE AND LIMITATIONS
The study’s focus includes the coronavirus’s economic significance in Nigeria. The study’s scope was constrained due to a constraint the researcher encountered;
a) AVAILABILITY OF RESEARCH MATERIAL: The researcher’s access to suitable research material limits the investigation.
b) TIME: Because the researcher must juggle the study with other academic obligations and exams, the time allotted for the investigation does not improve wider coverage.
OPERATIONAL DEFINITION OF TERMS
Understanding how communities, governments, organisations, households, and people distribute their limited resources is crucial from an economic perspective. Making decisions in daily life might benefit from understanding the economics.
Coronavirus: COVID-19 is an emerging virus that causes the infectious disease coronavirus disease. The condition results in a respiratory illness (similar to the flu) with symptoms like a cough, a fever, and, in more serious cases, breathing difficulties.
You can safeguard yourself by routinely washing your hands, refraining from touching your face, and keeping your distance (1 metre or 3 feet) from sick people.
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