What Are The Up And Downs In Nigerian Economy Pre And Post Duration Of COVID-19?

Do you know how expatriates used to send money to Nigeria amid a pandemic lockdown situation? The COVID-19 pandemic has sparked what may be the most severe global health and economic crisis in human history. As a result, governments all over the world have pledged at least $12 trillion in stimulus to help COVID-19 recover, with much of it focusing on urgent needs such as health, food security, and employment. Countries must, however, concentrate on developing economies that are vulnerable to global health issues, economic shocks, and climate change. Countries will rebuild in a more inclusive, sustainable, and resilient manner by prioritizing COVID-19 stimulus that addresses multiple challenges.

The findings show that a combination of falling oil prices and spillovers from the COVID-19 outbreak caused Nigeria’s economic recession, which not only reduced demand for oil products but also halted economic activity when social distancing policies were implemented. The government responded to the crisis by assisting businesses and a limited number of households impacted by the coronavirus (COVID-19) outbreak. Due to job loss, the homes primarily expatriate’s families and could not transfer money to Nigeria.

The central bank introduced accommodative monetary policies and provided targeted 3.5 trillion in loan support to some sectors. These efforts should have kept the economy from collapsing, but they didn’t. Economic agents were unable to openly participate in economic activities to fear contracting the COVID-19 disease, which was then rapidly spreading.

What Is The Economic Impact Of Pandemic On Citizens Of Nigeria?

The presidential order for a two-week lockdown, which went into effect on March 30th, had even more negative consequences for the country’s economy.

The majority of expatriates were unable to transfer money to families in hone country. But most of them managed to send money to Nigeria online. The majority of private companies laid-off employees and the handful who remained had their wages cut. The media was not spared, with the Punch newspapers, for example, laying off about 40 employees at the end of May due to a lack of advertising, which was necessary to keep staff overhead costs down.

The majority of the hotels that closed incurred losses due to repairs, while employees, the majority of whom are breadwinners, have been laid off since March 2020. The effect would undoubtedly have a significant impact on their ability to pay their bills and manage their family. Due to the lack of money in circulation, people’s buying power has plummeted, and people started online money transfers to Nigeria and abroad for financial movements.