COVID-19 PANDEMIC AND NIGERIA’S ECONOMY. AN ASSESSMENT OF ITS EFFECTS ON KOGI STATE ECONOMY

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

Infectious illnesses have caused devastation throughout global history among nations. The rate at which these contagious illnesses spread is also being impacted by the ongoing and rising global convergence. The Globe Health Organization (WHO) reports that during the last ten years, the world has seen the rise of various epidemics and disease outbreaks that were brought on by more than 20 infectious agents. The advent of coronavirus-associated illnesses like SARS and MERS posed problems for public health systems all over the world. The cause of coronavirus illness is SARS-CoV-2. The most recent addition to this growing list of new agents is COVID-19. COVID-19 was deemed a pandemic by WHO on March 11, 2020, and a public health emergency of worldwide significance on January 30, 2020.

A clustering pneumonia with an unknown origin was reported in Wuhan, China, according to the Bogoch et al. (2020) research. This pneumonia may have spread internationally through commercial air travel. The shocking amount of more than 1.4 million infections in 177 nations and more than 85.000 fatalities worldwide as of April 9th, 2020, make it one of the deadliest pandemics in human history.

The COVID-19 pandemic's rapid and continued global expansion has caused an extremely tough period in history that is unheard of. As a result, the global economy shrank and spread like a virus to every country in the globe.

In Nigeria, the virus was found in February 2020. In particular, it extended to the cities of Lagos, Ogun, and FCT. Due to the pandemic's ongoing spread, these cities first experienced partial lockdowns, and in March 2020, the whole nation experienced complete lockdown.

Nigeria was affected by the global developments brought about by the COVID-19 pandemic. The changes are summed up as follows: an increase in disease, death, and poverty; effects on health; food production; security; money supply; a decrease in foreign exchange inflow as a result of a lack of export and import of goods and services other than necessities; a decrease in consumer spending as a result of access and movement restrictions; changes in the way businesses operate from face-to-face interactions to online interactions; and numerous other changes.

Nigeria's financial and economic collapse is being caused by the consequences of the coronavirus pandemic (Covid-19) and a drop in oil prices (economic crises or recessions). The latest economic downturn in Nigeria, according to Sanusi(2021), is the country's worst seen in over 40 years [Goodell, 2020]. The Covid-19 pandemic lockdown has caused a severe reduction in production, employment, and revenue in Nigeria, which has traumatized and collapsed the country's already weak economy [Giannakis, 2017]. The disruption of the supply chains across industries, the collapse of capital flight, the rise in commodities prices, and the turbulence in the capital market during and after the lockdown have all contributed to the instability of economic activity. According to National Bureau of Statistics (NBS) figures (as of September 2020), Nigeria's commerce decreased by -17.97% from the second quarter of 2019 to the second quarter of 2020, or -14.95%. Manufacturing's nominal gross domestic product (GDP) growth was 0.14%, -37.92% lower than that of 2019, while the agriculture sector had declines of -0.21% and -0.62%, respectively, compared to those of 2019 and 2018 [Irwin, 2015]. The primary source of income for the Nigerian government, the oil and gas industry, has also been severely impacted by the Covid-19 outbreak. The value of oil prices immediately dropped by 60%. As a consequence, it is anticipated that the epidemic would harm the Nigerian economy [Irwin, 2015]. For the first nine months of 2020, a negative cumulative GDP (-2.48%) was noted [Klantschnig, 2019]. According to the National Bureau of Statistics, Nigeria saw negative growth for two straight quarters in 2020. According to NBS reports, COVID-19 results with a significantly low export volume left over 21 million Nigerians without jobs (27% of the labor force), which caused Nigeria's economy to contract by 6.1% year over year in the second quarter of 2020, the steepest decline in the previous ten years [Klantschnig, 2019]. Therefore, the study examines Covid-19 pandemic and Nigeria’s Economy. An assessment of its effects on Kogi state economy.

STATEMENT OF THE PROBLEM

The COVID-19 has been shown to be among the most infectious, viral, and contagious illnesses in recorded history. This virus has a very unusual impact on human existence. Many firms have shut down as a result of this. Nigeria as a nation must thus quickly start to diversify its economy away from oil and gas. This may be done by producing items locally (such as engineering products, tools and gadgets, and car components, among other things), as well as by making efficient use of its resources (Macias et al, 2020). Additionally, this will aid in the formation and long-term viability of enterprises that are necessary to address the issue of the economic slowdown brought on by the COVID-19 epidemic. Hence, this study will look into  Covid-19 pandemic and Nigeria’s Economy. An assessment of its effects on Kogi state economy

1.3 OBJECTIVES OF THE STUDY

The primary aim of this study is to examine the covid-19 pandemic and Nigeria’s economy. an assessment of its effects on Kogi State Economy. Other aims of this study are: 

Ascertain the prevalence of Covid-19 pandemic in Kogi State of Nigeria.

Investigate whether the widespread of Covid-19 pandemic had a negative effect on the operations and survival of businesses in Kogi State of Nigeria.

Investigate how the widespread of Covid-19 pandemic affected the employment and sources of livelihood of Nigerian in Kogi State of Nigeria.

Investigate whether the widespread of Covid-19 pandemic had a negative effect on food security in Kogi State of Nigeria.

Investigate whether the widespread of Covid-19 pandemic had a significant effect on money circulation in Kogi State of Nigeria.

1.4 RESEARCH QUESTIONS

The following research questions will be answered in this study:

What is level of the prevalence of Covid-19 pandemic in Kogi State of Nigeria?

Did the widespread of Covid-19 pandemic had a negative effect on the operations and survival of businesses in Kogi State of Nigeria?

How did the widespread of Covid-19 pandemic affected the employment and sources of livelihood of Nigerian in Kogi State of Nigeria?

Did the widespread of Covid-19 pandemic had a negative effect on food security in Kogi State of Nigeria?

Did the widespread of Covid-19 pandemic had a significant effect on money circulation in Kogi State of Nigeria?

1.5 RESEARCH HYPOTHESES

The following hypothesis will be tested in this study:

Ho1: The prevalence of Covid-19 in Kogi State was low.

Ho2: Covid-19 had no significant effects on Kogi State Economy.

1.6 SIGNIFICANCE OF THE STUDY

The study will be significant to the policy makers, as it would provide the basis for effective policies for the sector’s survival of the covid-19 challenges and also adopt strategies to mitigate likely future occurrence.

The study will also be significant to the business owners, as it would provide an opportunity for diversification, business opportunities and coping strategies now and in the near future.

The study will be significant to the academic community as it will cntribute to the existing literature.

1.7 SCOPE OF THE STUDY

The study will ascertain the prevalence of Covid-19 pandemic in Kogi State of Nigeria. The study will also investigate whether the widespread of Covid-19 pandemic had a negative effect on the operations and survival of businesses in Kogi State of Nigeria. The study will further investigate how the widespread of Covid-19 pandemic affected the employment and sources of livelihood of Nigerian in Kogi State of Nigeria. More so, the study will investigate whether the widespread of Covid-19 pandemic had a negative effect on food security in Kogi State of Nigeria. Finally, the study will investigate whether the widespread of Covid-19 pandemic had a significant effect on money circulation in Kogi State of Nigeria. Hence this study is delimited to Kogi State.

1.8 LIMITATION OF THE STUDY

Financial constraint

Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint

The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work

1.9 DEFINITION OF TERMS

Covid- 19: Coronaviruses (CoV) are a large family of viruses that cause illness ranging from the common cold to more severe diseases.

Economy : relating to economics or the economy.

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