- The COVID-19 pandemic ravaged Africa’s giant;
- Distortions created by the pandemic include income loss, food insecurity, and unemployment;
- Government policies have not sufficiently curtailed the effects of the pandemic- they worsened it in some instances;
- The Nigerian government needs to develop more robust policies that aid citizens’ recovery from the adverse impact of the pandemic.
Impact of the COVID-19 pandemic
An undeniable reality is that COVID-19 has changed the world in diverse ways. It has affected lives, devastated livelihoods, crippled economies, and even remodelled trends. According to the United Nations Children’s Fund, “everything has been impacted. How we live and interact with each other, how we work and communicate, how we move around and travel. Every aspect of our lives has been affected”. But bringing it home, the National Bureau of Statistics (NBS) highlights the ripple effect the pandemic set off in Nigeria using four states surveyed.
According to the report, the pandemic ushered us into an economic downturn in the second quarter of 2020. Similarly, the novel virus inadvertently affected individual and household incomes. And in other news, food insecurity appears to be more prevalent. But perhaps what stands out the most from the report was the subtle hint at the deviating nature of government policy from Nigerians’ reality.
1. High electricity tariffs and fuel subsidy removal
The impact assessment report showed that for many, the pandemic meant income depreciation. Sure, the government lifted lockdown; yes, many returned to work. But the report still notes the precarious nature of salaries for countless. In fact, for the four states surveyed, NBS noted how households resorted to borrowing and savings to foot expenditure. Yet, for residents in Kano, Lagos, Rivers and Abuja, increased electricity tariffs and an inflated pump price met their already rising expenditure.
2. Movement restriction versus economic survival
In the prior weeks of the pandemic, the Nigerian government started restrictive measures to safeguard public health. As a result, the government initiated a country-wide shutdown for non-essential businesses. And while it was in the interest of public safety, it failed to consider the economic impact. People have to eat. To do so, they have to earn, especially in an economy where over 40% of its population live below the poverty line. So it was no surprise that NBS’ survey revealed that over one in five households in Kano and FCT violated containment measures to maintain a living. The situation a tad better in Lagos and Rivers, which accounted for one in 10 defaulting households.
3. Palliatives versus food insecurity
Despite the government’s claim that it has distributed palliatives to poor households, the impact report has revealed a prevalence of food insecurity across the country. For instance, 79% of households in Rivers and 72% of households in the FCT reported having to skip meals since the start of the pandemic. Besides, the report also showed that the coverage of social assistance, in the form of free food, varied dramatically between the four states. For example, only 43% of households in Rivers received food relief since the start of the pandemic. The situation is worse in Kano, where only 5% of households have received food support. Recall that Kano has one of the highest poverty headcount rates in the country.
4. Financial relief from government versus increased household borrowing
The report has also shown an increase in borrowing among Nigerian households despite government’s disbursement of relief funds. Rising levels of borrowing suggest the inadequacy of government financial reliefs either in size or in coverage. In fact, it may also show considerable inefficiency in the disbursement of reliefs. Frequently critics have called out the Nigerian government for the chaotic distribution of palliatives and reliefs.
5. Unemployment
Another angle to the report is its exposition on the increased unemployment, which is partially connected to the pandemic. According to the report, the share of people engaged in economic activities in the four states was lower in June/July 2020 than before the COVID-19 pandemic. For example, in Abuja, the share of people working dropped by 14% points. Closely related to this is the reality that unemployment rate in Nigeria increased from 23.1% in Q3 2018 to 27.1% Q2 2020.
Takeaways from the COVID-19 Impact Assessment
Overall, Nigerians got the short end of the stick during this pandemic, which is not over despite public denial. Economic vulnerability met a depreciation in salaries. Then there’s the ongoing food insecurity amid inflated prices for commodities. Indeed, it is a trying time for households. Thus, the government must creatively consider measures to provide respite for the citizens. They could achieve this by developing comprehensive interventions and robust frameworks.
In addition, concerning the proposed ₦2.3 trillion economic stimulus, careful implementation is imperative. If the past has taught us anything, proposals have never been our issue- its the implementation! Besides, the government could consider phasing economic reforms that can further appreciate the economic well-being of the people. For example, they could implement fuel subsidy removal in phases; this would ease the burden of petrol price changes on Nigerians.