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Impact Of Coronavirus On Nigeria's Economy - Health - Nairaland

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Impact Of Coronavirus On Nigeria's Economy by Chrisbillakings(m): 11:07am On Mar 13, 2020
Coronavirus (Covid-19) has been spreading like wildfire since it started in December. The oubreak of this disease has done great damage to the global economy of which Nigeria is not exempted. The impact of the oubreak of coronavirus on Nigeria includes but are not limited to the following:

1. The fall of the global crude oil price to about $30. Nigeria budget benchmarked oil price at $57. The new oil price is about 50% reduction in the price used to plan the budget

2. Great reduction in Foreign Reserve: The majority of dollar earning in Nigeria isd from the sales of crude oil. The fall in the crude oil price will greatly affect the Nigerian external reserves causing more trouble for the economy.

3. Possible Fall in the Value of Naira: Even if the Central bank is trying not to devalue the naira, the demand for dollar by the market might not be able to prevent the fall in the value of naira owing to possible fall in the external reserve. This will force people to source for dollar from the black market leading to the rise in the exchange rate.

4. Fall in stock prices: The outbreak of the covid-19 has continually affected the prices of stock globally and of which Nigeria is not exempted from this imminent situation. Prices of major stocks in Nigeira has continued to fall Acess bank, Zenith bank in recent weeks all which can be attributed to the outbreak of coronavirus.

5. The need to cut the 2020 budgets: Since the Nigeria budget is pegged on the sales of Crude oil, Nigeria does not have any other option than to cut down it's 2020 budget.

6. Recession looming: There is possibility of a global recession if the coronavirus outbreak is not curtailed. The last recession experienced by Nigeria in 2016 was as a result of fall in the international oil prices. Price of oil has reached 5 years low and if something reasonable is not done by the economic team, then Nigeria is in for another possible recession.

7. Fall in Economic Activities: Most of Nigeria imports comes from China. Considering that most companies in Nigeria gets their raw materials and machines majorly from China then it is glaring that economic activities in the country will slow down. Most countries of the world has already cut down the expected GDP growth for 2020 of which Nigeria is also not an exemption.

If you have any differing or additional opinion, you can add yours below
Re: Impact Of Coronavirus On Nigeria's Economy by Lawgod247: 12:04pm On Mar 13, 2020
Re: Impact Of Coronavirus On Nigeria's Economy by okitejoseph: 11:37am On Oct 01, 2020
At the turn of the year 2020, everyone was surly optimistic about the opportunities the new year would bring and also the multiple offers that are there for those who want to explore different career path as well as those who wants to grow in their career.
From the beginning, no one thought that things will turn out the way it did, to some as early as February, while most of us began to feel the impact of the virus towards the end of March.

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