This research examined the economic significance of coronavirus in Nigeria. The Nigerian government must lead the effort to diversify the economy. It is one viable strategy for navigating the current economic uncertainty and instability. The repercussions of the COVID-19 outbreak should indicate to Nigerian economic managers and policymakers that the country’s single-minded dependence on oil is failing. Priorities for diversification into other industries, such as agriculture, solid minerals, industry, and services, should be emphasized further. Additionally, sellers are using the pandemic to hike commodity prices. The study’s conclusion and advice were presented.
1.1 BACKGROUND OF THE STUDY
Coronavirus disease (COVID-19) is a novel virus-caused infectious disease. The condition causes respiratory illness (similar to the flu) characterized by coughing, fever, and, in extreme cases, trouble breathing. You can protect yourself by often washing your hands, avoiding touching your face, and avoiding close contact (less than 1 meter or 3 feet) with sick people.
The 2019–20 coronavirus pandemic has had far-reaching effects beyond the disease’s propagation and containment attempts. As the epidemic has spread across the globe, concerns have turned from supply-side manufacturing challenges to a decline in the services industry. A number of sectors are anticipated to experience supply shortages due to panic buying, increased consumption of items to combat the epidemic, and factory and transportation disruptions in mainland China. There have been widespread reports of pharmaceutical supply shortages, as well as widespread panic buying and shortages of food and other vital supermarket goods (.wikipedia.org).
Nigeria’s economy is almost entirely based on crude oil exports. The necessity to wean the economy off its reliance on oil has been frequently stated by previous and even the current administration. With the current state of the economy, worker pay may be in peril. On Wednesday of last week, members of the Federation Accounts Allocation Committee (FAAC) were unable to reach a consensus over the sum proposed for distribution. An official implied that committee members could not agree on the amount proposed for distribution among revenue-generating entities. The amount supplied was far less than what the members expected to be divided across the three levels of government. This recalls the 2016 recession, when 27 states owed workers and pensioners pay and benefits ranging from one to thirty-six months. According to a 2017 poll, many states failed on pension and gratuity payments, with Imo, Taraba, and Niger owing retirees two to three years’ worth of benefits (https://tribuneonlineng.com). Wednesday, following a cabinet meeting, the Nigerian government approved a reduction in its capped gasoline pump pricing, allowing the cost of fuel in the country to reflect the recent down in world oil prices. President Muhammadu Buhari ordered a drop in the pump price of gasoline from 145 Naira to 125 Naira and instituted a “modulation mechanism” that will provide a reduction in gasoline costs if crude prices fall. Timipre Sylva, minister of state for petroleum, issued a statement stating that Nigerians should profit from reduced fuel prices, a direct result of the global crude oil price slump. “These steps are being made to mitigate the economic impact of COVID-19 on our citizens,” he stated. The global impact of the coronavirus has disrupted Nigeria’s primary source of revenue and foreign currency. Up to ninety percent of the nation’s foreign exchange profits come from oil sales (http://venturesafrica.com). As a result of the coronavirus threat, buyers in Nigeria are stocking up on supplies, while vendors are looking to increase their earnings. People are requesting government intervention. Multiple factors contributed to the price increase. Sellers are attempting to benefit on the current economic turmoil. There is a rise in demand as a result of consumers buying in a panic since they do not know what tomorrow may bring. Thirdly, it relates to the international commercial environment. Since the Chinese market has been severely affected since the beginning of the year, traders no longer travel to China to purchase commodities(https://www.dw.com/en/price-hike).
The bleak outlook is not limited to Nigeria. The same is true for other African, Middle Eastern, Asian, and European nations. Given this context, the researcher wishes to examine the economic significance of coronavirus in Nigeria.
Description of the problem
As a result of the slowdown in the world economy and the lockdown in certain countries, including as Italy, Spain, and the majority of Eurozone economies, and Nigeria in particular, COVID-19 has also impacted the global demand for oil. It is projected that the reduction in oil demand will surpass the loss of approximately 1 million barrels per day during the recession of 2007-2008. This also occurs at a time when Russia and the OPEC cartel, two major participants in the global oil sector, are at odds over the decision to reduce supply. The unambiguous oil price war between these two global oil market titans may have further serious repercussions for the oil price, which has begun to decline.
Sector-specific consequences and effects may differ. For instance, the ramifications on the worldwide aviation and tourist industries are a result of the pandemic’s effects on international travel. As customers’ discretionary spending continues to drop, cruise lines, hotels, and the hospitality industry are experiencing a decline in demand and patronage. Additionally, as a result of the coronavirus outbreak in Nigeria, food costs have risen substantially. The researcher desires to explore the economic significance of coronavirus in Nigeria.
The purpose of the study
The study’s aims are as follows:
To determine whether the coronavirus impacted the Nigerian economy.
Determine whether the introduction of COVID-19 and its increasing incidence in Nigeria has necessitated a thorough reevaluation and revision of previous income projections.
To determine whether sellers are utilizing coronavirus to enhance commodity prices.
Determine the effect of coronavirus on the Nigerian economy
Did coronavirus impact Nigeria’s economy?
Did the advent of COVID-19 and its rising incidence in Nigeria necessitate a thorough reevaluation and revision of earlier income projections?
Are vendors taking advantage of the coronavirus to increase prices?
Does the coronavirus have any effect on the Nigerian economy?
Importance of the research
Students and the general public will find this research to be extremely important. The research will shed light on the economic significance of coronavirus in Nigeria. The investigation will evaluate whether Nigerian merchants are using coronavirus to increase commodity sales. It will also reveal whether the introduction of COVID-19 and its increasing incidence in Nigeria has necessitated a significant reevaluation and revision of the original revenue projections. The paper will also serve as a resource for future academics investigating a comparable problem.
Limitations and scope of the study
The study’s scope includes the economic significance of coronavirus in Nigeria. The researcher faces a constraint that restricts the study’s scope;
a) AVAILABILITY OF RESEARCH MATERIAL: The researcher has insufficient research material, consequently limiting the scope of the investigation.
b) TIME: The time allotted for the study does not allow for a broader scope because the researcher must mix it with other academic activities and examinations.
Terms with Operational Definitions
Economics is vital because it teaches you how society, governments, organizations, households, and people allocate finite resources. Economics can also provide essential information for everyday decision-making.
Coronavirus: Coronavirus disease (COVID-19) is a novel virus that causes an infectious disease. The condition causes respiratory illness (similar to the flu) characterized by coughing, fever, and, in extreme cases, trouble breathing. You can protect yourself by often washing your hands, avoiding touching your face, and avoiding close contact (less than 1 meter or 3 feet) with sick people.