Nigeria After Covid-19

The Nigeria economy like every open economy would suffer a blow after the pass of
the virus. It is common knowledge that the economy has just recovered from recession
and is still trying to find stability in her overall economic activities. The carcass the virus
may leave for the Sub-Saharan economy may become a death blow to her economic
activities. With the crash in oil market which usually was responsible for over 70% of
the economy revenue, of which the year 2020 budget which was proposed with the
projection of $57 per barrel now less than $35 in real market prices, the economy’s
revenue, expenditure and foreign reserves would diminish simultaneously. Agreeably, it
could be said that the manufacturing industry has the highest level of human contact
and with this assertion, the impact of the virus upon the economy would be
unquantifiable as production process would be brought a standstill which would result
to a scarcity of basic necessities and if found would be unaffordable due to inflationary
pressures and other human factors.


Undoubtably, there are several government policies on agriculture but none suitable
enough for the growing world problems like climate change and covid-19. The
agricultural sector contributes over 40% to the GDP of the economy but it not up to par
with its full potential. The sector may fall into dubious hands and agricultural products
would become scarce and items if present would be available at exorbitant prices,
which would further cripple the economy. The banking sector may see an
unprecedented change as people would continue to patronize if and only if loans can be
provided at less than 5% interest.


After the setback of the virus, operations can return to normal. The idea is to provide
money for people in order to continue economic activities. One sector that would
continue to bring revenue is the technological sector (telecommunications). People
during this period would intend to stay connected and informed so there is a projection
of increase in this sector now and after the wave of the virus. The basic sectors were
picked because of their direct impacts towards the economy and expressed in some
areas, but there are two sides to every coin.


The oil sector at its worse in over three decades is a very bad situation for the
Nigerian economy that has been heavily dependent on the revenue from it. The foreign
reserves, balance of payment, revenue, budget cuts and industrial activities are being
affected by the pandemic. In retrospect, it offers Nigerian government a chance to truly
and fully fulfill plans and promises of diversification to other reliable and profitable
sectors so that future occurrences of world problems would be a scratch on the
economy’s back. The agricultural sector of the economy has been growing but not to its
deserved projection; the negative side being that the invisible hands of demand and
supply reduces the availability of agro-based products. Policy makers should develop a framework for diversification, because people and industries can do without data but
not food. Economic projections should favor agro products so the Nigerian economy
can actually make positive use of the opportunity the pandemic offers.


Banking sector need reforms that put emergency responses into play but not until
the apex bank calls for all hands on deck. Contingency plans should be in place for such
state of affairs and reactions to certain economic problems should be dynamic. The
sector would thrive in this period, but the monetary concern of people borrowing without
a considerable amount going into investments is hazardous to the economy (during and
after the covid19 virus). A suggestion for the banking sector is the consideration of
direct investment plans of which they would be partners and mostly likely investors so
as to curb the problem of low investment. After the covid-19, this sector of the economy
would be appraised and still be sustainable.


Although this is a period of boom for the technological sector (telecommunication),
service providers should not seek exploitation of their customers but exploration of new
opportunities including market expansion. The sector would make high revenue during
this period with possibilities of 10% increase but should also consider providing
services at affordable costs in order to reinforce government policies to combat the
covid-19 effect. Though, many economic variables need to be addressed like stagflation
and devaluation, most economists are optimistic of progress after the phase of the
virus and that government and industries are on their A-game and would provide
answers to all.