COVID-19 Pandemic on Macroeconomic Dynamics in Nigeria: An Assessment

Abstract

This paper assessed the impact of COVID-19 on macroeconomic dynamics in Nigeria, which translated to pressure on the value and depreciation of the naira, job loss, deferment and inability to manage debts, industrial production shutdown and supply chain disruption, price hike and demand reduction, among others, at the peak or during the lockdown period of the COVID-19 pandemic. Macroeconomic variables such as gross domestic product (GDP), inflation, prices, economic growth, national income, employment and others were seriously affected. This assessment is based on the available literature on the development and outcome of the COVID-19 pandemic on the economy of Nigeria. Findings show the effect on the Nigerian mono-economy which relies mostly on crude oil exportation for earnings, economic prosperity and forecast. During the period, the international price for crude oil was at an all-time low, which meant a reduction in income for a fragile and double-digit inflation economy. The high dependence on raw materials from foreign sources for major manufacturing industries had a degree of negative impact, as finished product processing slowed down and the supply chain distorted during and after the lockdown. This study indicates that the sharp drop in Nigeria's GDP growth was due to the stoppage in economic activity during the lockdown in April 2000 to curb the spread of the coronavirus.