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COVID-19 Pandemic, Oil Slump and the Nigerian Economy

Author

Listed:
  • Kehinde Mary BELLO

    (Obafemi Awolowo University, Nigeria)

  • Matthew Oladapo GIDIGBI

    (Modibbo Adama University, Nigeria)

Abstract

The COVID-19 pandemic came as a shock to the global economy and its impact was well felt. However, it came with the possibility of implementing structural policies and reforms. The pandemic slowed down economic activities in the global market and translated into crashed oil prices, which gave room for reforms such as subsidy removal. Nigeria maximized the opportunity to remove the full subsidy on petroleum products, especially Premium Motor Spirit (PMS). But the possibility was not last enough for the populace to enjoy. COVID-19 pandemic and its consequence on oil price had affected the Nigerian economy by ways of fiscal constraint, loss of revenue, the exit of businesses in the market, job cuts and soaring unemployment rate. Exchange rate fluctuation is prevalent, the inflation rate is on the rise and thereby, poverty incidence has increased. In cushioning the effect of the pandemic, governments at all levels, religious bodies, businesses and individuals donated towards the fight and support of people during the pandemic. Nigeria should maintain a strong economic basis, single its double sides of being exporter and importer at the same time; and ensure local refining of the petroleum products. Also, it has come of age for developing a national package to forestall a similar crisis in an instance of similar occurrence.

Suggested Citation

  • Kehinde Mary BELLO & Matthew Oladapo GIDIGBI, 2022. "COVID-19 Pandemic, Oil Slump and the Nigerian Economy," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 7(3), pages 438-453, October.
    • Handle: RePEc:rom:merase:v:7:y:2022:i:3:p:438-453
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    References listed on IDEAS

    as
    1. Tang, Weiqi & Wu, Libo & Zhang, ZhongXiang, 2010. "Oil price shocks and their short- and long-term effects on the Chinese economy," Energy Economics, Elsevier, vol. 32(Supplemen), pages 3-14, September.
    2. Bello, Kehinde Mary & Gidigbi, Matthew Oladapo, 2021. "The Effect of Trade on Economic Growth in Nigeria: Does Covid-19 Matters?," African Journal of Economic Review, African Journal of Economic Review, vol. 9(3), June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    COVID-19; oil slump; economy; Nigeria;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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