Before the lockdown occasioned by the spread of the COVID-19 in the country, the economy of Nigeria was threatened by the face-off between Russia and Saudi-Arabia over the supply of crude oil to the international market. For the first time in history, the price of crude oil plunged deep into negative with Nigeria’s 2020 budget depending on revenue from oil.
This indication alone pointed to one fact that the country may be in for another round of recession, the second in a decade. In the midst of these international muscles flexing, with Nigeria helpless due to its dependent on oil proceeds, the country was forced to lockdown to avoid the spread of the virus. While the lockdown looms over the country, the Central Bank of Nigeria, devalued the naira from N307 to a dollar to N360. Although the bank claimed it was an adjustment and not devaluation, yet the bottom line remains that naira lost 15 percent of its value to the dollar.
Like some other countries across the world trying to battle the spread of the COVID-19, Nigeria has been on lockdown for over two months with the economy being the most affected. On Monday, the Secretary to the Government of the Federation, Mr. Boss Mustapha, as the Chairman of the Presidential Task Force on Covid-19 announced that President Muhammadu Buhari approved its recommendation for implementation that allows organised private sector to resume their operations in order to balance public safety with protecting livelihoods. By implication, economic activities resume in gradual pace while not losing sight of the fight against the disease. IMPACTNEWS holds the view that this directive should have been taken weeks ago when the lockdown was modified. However we commend the Federal Government for eventually taking the decision notwithstanding the time.
The Federal government through the lockdown ignored Nigeria’s informal economic character compared to advance countries that run on formal settings.The late March decision of the Federal government for total lockdown of the commercial center and, the political and administrative hub of the country had far more than little negative effect on the economy. Economists severally through the lockdown warned that the fragile nature of the country’s economy is neither ready for such lockdown model nor are Nigerians prepared.
The various palliative measures rolled out by the government are still enmeshed in controversy. We are convinced that post lockdown, most businesses may not survive the COVID-19 lockdown while many Nigerians gainfully employed pre-lockdown may be pushed to the unemployment pool that is already saturated.
We therefore advised that the federal government put in place a sector by sector intervention to provide cushioning support for every sector to balance in this unstable and shaky economy. It is also high time the government effectively and transparently coordinate the social register to include vulnerable Nigerians across the country and not just a segment of the country.
