The Covid-19 pandemic has generated shocks that have caused economic fluctuations globally, calling for an understanding of the behavior of macroeconomic variables. This study presents an early review of the macroeconomic impact of the Covid-19 pandemic in Nigeria.
Nigeria has been severely affected by the spread of Covid-19 and the associated sharp decline in oil prices. As a commodity-exporting and resource-dependent nation, the pandemic widened the fiscal deficits in the country.
Government spending and the susceptibility to high public debt vulnerabilities also increased. Thus, the country demanded for financial assistance from multilateral organizations and official bilateral creditors— including temporary debt relief—in order to cushion the plausible effects of the pandemic (World Bank, 2020).
The major economic damages of the pandemic in Nigeria are reflected in the falling development index, such as the manufacturing index and fixed investment. It is hoped that policies adopted to cushion this impact would accelerate Nigeria’s economic recovery, restore, and insulate critical sectors of the economy from the effects of the Covid-19 pandemic.
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Culled from: Working Paper Series, 219, 2021, The Economic Consequences of the Covid-19 Pandemic in Nigeria.
Source: Development Bank of Nigeria Plc