As the rest of the world is battling COVID-19, Nigeria and other low- and middle-income countries are already feeling the negative economic impact of COVID-19 on the global supply chain in many sectors of their economy, caused by a dip in global demand for essential commoditieNigeria and other petrodollar economies have seen the demand for their crude coming to a halt, budget projections trashed and rendered useless.
The N10.57 trillion budget for 2020 was projected $57 per barrel. Currently, the Bonny Light is trading at $18 per barrel, produced at the cost of $15 to $17 per barrel. All the expected earnings from the sale of crude oil has been rendered ineffective.On the other hand, the continuous lockdown has slowed down economic activities, especially in the informal sector.
In his widely circulated piece, Can Africa Afford Lockdown? Prof Chukwuma Soludo opined that African governments cannot afford lockdowns like their counterparts in Europe and America. “…is unaffordable and could potentially worsen the twin pandemics — health and economic — in Africa”, said Prof Soludo.Many traders have been unable to sell their goods, some schools may not pay their teachers a result of the inability of parent to pay tuition.Although lockdown helps to slow down the spread of the virus, it is not an effective approach on the long run.
We urge the government to find creative ways to prevent economic, insecurity and humanitarian crises amid the health crises. Sadly, in Northern Nigeria, humanitarian crises are slowly brewing as a result of sudden increase in cases especially in Kano. Kano State government in a bid to curb the spread of Coronavirus deported 435 and 524 Almajiri student to Katsina and Jigawa States respectively.
The Kaduna State government also deported 40 Almajiri students back to Kebbi State. Some street gangs in the name of one million boys are already terrorizing some areas in Lagos.
This is the time to invest massively in the critical sectors of the economy. More funds should be pumped into health research, education and the manufacturing sector. The attitude of government and public officials towards governance and patronage of Nigerian businesses should stop. The foolish style of using N37 billion to renovate a place built with N7 billion must end. The profligacy of the state is not sustainable during this pandemic.
READ ALSO:Coronavirus: Slash Pump Price, Suspend Bank Charges, Atiku Tells Buhari
The Governor of Central Bank of Nigeria, Mr. Godwin Emefiele outlined eight steps to transform Nigeria into a modern, sophisticated and inclusive economy that is self-sufficient, rewards the hardworking, but protects the poor and vulnerable, and can compete internationally across a range of strategic sectors.
Among those suggestions include high quality infrastructure, reliable power, large scale agricultural production, a healthcare system that works for all, cheap and long term credit for SMEs and large corporation, financial services and security for the poor and the vulnerable, an educational system that enables critical thinking and creativity and an ecosystem of factories.
From the suggestions above, Nigeria is yet to start her journey towards progress. We can decide to build a great resilient nation or continue playing the Ostrich.
Follow us on, Facebook
Post Disclaimer
The opinions, beliefs and viewpoints expressed by the author and forum participants on this website do not necessarily reflect the opinions, beliefs and viewpoints of Anaedo Online or official policies of the Anaedo Online.