Economic importance of coronavirus in Nigeria
This study was on economic importance of coronavirus in Nigeria. The Nigerian government essentially must lead economic diversification drive. It is one practicable way to saddle through the current economic uncertainties and instabilities. What the consequences of COVID-19 pandemic should further offer the Nigerian economic managers and policymakers, is that the one-tracked, monolithic reliance on oil is failing. Diversification priorities to alternative sectors such as agriculture, solid minerals, manufacturing and services sectors, should be further intensified. Sellers are also taking advantage of the pandemic to increase price of commodities. The study came out with conclusion and recommendation
1.1BACKGROUND OF THE STUDY
Coronavirus disease (COVID-19) is an infectious disease caused by a new virus. The disease causes respiratory illness (like the flu) with symptoms such as a cough, fever, and in more severe cases, difficulty breathing. You can protect yourself by washing your hands frequently, avoiding touching your face, and avoiding close contact (1 meter or 3 feet) with people who are unwell.
The 2019–20 coronavirus pandemic has had far-reaching consequences beyond the spread of the disease and efforts to quarantine it. As the pandemic has spread around the globe, concerns have shifted from supply-side manufacturing issues to decreased business in the services sector. Supply shortages are expected to affect a number of sectors due to panic buying, increased usage of goods to fight the pandemic, and disruption to factories and logistics in mainland China. There have been widespread reports of supply shortages of pharmaceuticals, with many areas seeing panic buying and consequent shortages of food and other essential grocery items(.wikipedia.org).
Nigeria operates a largely mono product economy solely dependent on crude oil. Past and even the present government had on many occasions mouthed the need to take the economy out of dependence on oil. With the present economic reality, workers’ salaries may be in jeopardy. On Wednesday last week, members of the Federation Accounts Allocation Committee (FAAC) could not agree on the amount presented for sharing. An official hinted that members of the committee could not agree on the amount presented for sharing by the revenue generating agencies. The amount presented was far below what the members were expecting to be shared by the three tiers of government. This brings to memory the experience of 2016 recession when 27 states were owed workers and pensioners salaries and entitlements ranging from one to 36 months. A 2017 survey showed that many states defaulted in the payments of pensions and gratuities, with Imo, Taraba and Niger states owing pensioners two to three years in entitlements ( https://tribuneonlineng.com). The Nigerian government after a cabinet meeting on Wednesday announced a cut in its capped gasoline pump prices to allow the cost of fuel in the country reflect the recent fall in global oil prices. President Muhammadu Buhari approved the fall in gasoline pump price from 145 Naira to 125 Naira and also introduced a “modulation mechanism” that will allow a reduction in petrol costs if there is a decline in crude prices Timipre Sylva, minister of state for petroleum, issued a statement saying Nigerians should benefit from falling fuel costs, which were a direct effect of the crash in global crude oil prices. “This action is being taken to cushion the economic impact of COVID-19 on our people,” he said. Nigeria’s major source of revenue and foreign currency has been shaken by the global effect of the coronavirus. Up to 90 percent of the country’s foreign exchange earnings are generated from sales of oil (http://venturesafrica.com). Prices for basic food staples are rising in Nigeria, as shoppers stock on essentials and sellers seek profits amid the coronavirus scare. people are calling for governments to intervene. the price hike is due to a number of reasons. Sellers are trying to profit from the crisis. There is also an increase of demand owing to panic-buying by people who don’t know what tomorrow will bring. “Thirdly, it is connected to the global trade environment. Many commodities come from China and since the Chinese market was heavily affected since the beginning of the year, traders don’t travel to China anymore( https://www.dw.com/en/price-hike).
The gloomy picture is not just in Nigeria. Other African countries suffer the same, as well as Middle-East, Asian and European countries. Based on this background the researcher wants to investigate the economic importance of coronavirus in Nigeria
Statement of the problem
The slowdown in the global economy and lockdown in some countries, such as Italy, Spain and most Eurozone economies and Nigeria in particularly, as a result, COVID-19 has also taken its toll on the global demand for oil. The decline in oil demand is estimated to surpass the loss of nearly 1 million barrels per day during the 2007-08 recession. This is also coming at a time when two key players in the global oil industry Russia and the OPEC cartel are at loggerheads on the decision to cut output. The unequivocal oil price war started between these two global oil market giants may have more dire consequences on the oil price that has started to dive.
Sector-specific implications and impacts could vary. For example, the impacts on the global aviation and tourism sectors are a result of the implications of the pandemic on global travel. As discretionary spending by consumers continues to decline, cruise companies, hotels, and hospitality are facing declining demand and patronage, at the same time following the outbreak of the coronavirus, prices have also sharply increased in Nigeria especially foodstuff. On this background the researcher wants to investigate the economic importance of coronavirus in Nigeria.
Objective of the study
The objectives of the study are;
- To investigate the whether coronavirus put pressure on Nigeria economy
- To ascertain whether the emergence of COVID-19 and its increasing incidence in Nigeria has called for drastic review and changes in the earlier revenue expectations
- To ascertain whether sellers are taking advantage of coronavirus to increase price of commodities
- To ascertain the impact of coronavirus on Nigeria economy
- Did coronavirus put pressure on Nigeria economy?
- Did the emergence of COVID-19 and its increasing incidence in Nigeria has called for drastic review and changes in the earlier revenue expectations?
- Do sellers taking advantage of coronavirus to increase price of commodities?
- Is there any impact of coronavirus on Nigeria economy?
Significance of the study
The study will be very significant to students and the general public. The study will give a clear insight on the economic importance of coronavirus in Nigeria. The study will investigate whether sellers are taking advantage of coronavirus to increase commodities in Nigeria. It will also inform whether the emergence of COVID-19 and its increasing incidence in Nigeria has called for drastic review and changes in the earlier revenue expectations. The study will also serve as a reference to other researchers that will embark on the related topic.
Scope and limitation of the study
The scope of the study covers the economic importance of coronavirus in Nigeria. The researcher encounters some constrain which limited the scope of the study;
- a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
- b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
Operational Definitions of Terms
Economic importance: Economics is important you get to know how societies, governments, businesses, households, and individuals allocate their scarce resources. The economics can also provide valuable knowledge for making decisions in everyday life
Coronavirus: Coronavirus disease (COVID-19) is an infectious disease caused by a new virus. The disease causes respiratory illness (like the flu) with symptoms such as a cough, fever, and in more severe cases, difficulty breathing. You can protect yourself by washing your hands frequently, avoiding touching your face, and avoiding close contact (1 meter or 3 feet) with people who are unwell.