Effects and impact of COVID-19 on Nigeria's economy business and ways of life

Yisaabel

Covid-19 is a disease caused by a newly discovered Corona virus, it is a global pandemic that the world is currently battling with. It's most common symptoms are fever, dry cough and general body weakness.

Covid-19 in Nigeria

The first case of the deadly Corona virus in Nigeria was confirmed on the 27th of February 2020 in lagos south west, Nigeria.

The country currently have over 164,000 confirmed cases of the virus with over 154,000 recoveries and 2,061 Deaths.

Effects and effect of covid-19 on Nigeria's economy

The deadly Corona virus pandemic had a negative impact on Nigeria's economy because most average Nigerians live on the daily income they get from their various endeavors.

As a result of the restrictions given by the government to reduce the spread of the deadly disease, they were unable to feed. Most resorted to begging while others got into various social vices in other to survive.

Here are some of the major effects on Nigeria's economy

1. It lead to inflation: inflation can be defined as an increase in the price of goods and services in an economy.

Due to the restrictions in Nigeria most businesses were unable to operate at their full capacity, this however reduced the quantity of goods produced by most firms, which in turn reduced the quantity of goods available for sale to the consumers. This short fall in supply caused the price of raw materials used in producing various goods to rise, so it was only natural for the producer to increase the price of goods so as to meet his profit. This is Because a business or firm cannot be selling less than how much it invested to make that product.

Another reason is that during the lockdown most businesses were aware of the restrictions placed by the government, they raised the price of goods knowing that consumers have no alternative and the consumers in turn had to buy the goods at their inflated prices due to hunger and the fear of further inflated prices.

2. It lead to unemployment: Due to the restrictions most firms were unable to function properly. This development reduced the revenue generated by most firms. Most of this firms were unable to pay their staffs while some were paying half salaries.

The pandemic made most public and private businesses to reduce their work force because they could no longer pay all their staffs due to the fall in revenue generated by the business. In other nations workers were working from home, but most Nigerians could not work from home due to lack of facilities like stable electricity and proper network.

This development lead to high lay-off of staffs in most firms a typical example is Transcorp Hilton Abuja

3. The pandemic weakened the nation's currency: Nigeria as a nation was already suffering from an economic downturn before the covid-19 pandemic Due to the restrictions placed to reduce the spread of the virus. Businesses could no longer function properly leading to low investment and low business patronage.

This in one way or the other weakened the strength of the naira in the exchange market because we were witnessing running inflation

Others include

Reduction in the nation's Gross domestic product

Supply chain disruption

Poor cash flow in the market

Effects of covid-19 to businesses

1. It lead to increase in the price of raw materials used in producing goods. Due to little or no importation, most growing businesses were forced to close down.

2. It discouraged investment in the country: most investors and multinational companies who had plans to invest in the country were scared to do so because the country's economy was not favorable

3. Debtors gain creditors lose: some consumers purchase goods on credit so due to the pandemic most consumers were unable to pay, When they did after some time the creditors did not have proper value for their money due to inflation and economic downturn.

Effects of covid-19 to people's way of life

1. Effects on sport competitions: the covid-19 pandemic affected various sports competitions in Nigeria and beyond for example the edo national sport festival which was postponed to reduce the spread of the pandemic

2. Postponement of examinations: due to the lockdown academic activities in the country was put on hold. Most primary, secondary and tertiary institutions academic calendar had to be altered or changed. This is because Nigeria is not operating in a system where students can receive lectures and write examinations from the comfort of their homes.

3. Disruption of events and religious activities: Due to the covid-19 pandemic most people had to shift or postpone their events, vacations or tours.

Religious grounds were not left out too, most people couldn't worship together as it normally use to be.

All this are part of the effects of the covid-19 pandemic in Nigeria and we hope that the government will improve on various issues highlighted.

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Yisaabel operanews-external@opera.com