By Kingsley Chukwuemeka Ubani
Beginning in December 2019, in the region of Wuhan, China, Covid-19, a shortened form of “coronavirus disease of 2019” may have hit the world by surprise. With about 1.4 million current (active) cases of the disease and over 82,000 deaths recorded, the novel coronavirus disease is clearly a threat to the social, economic and political well being of countries.
To curb the spread, and avoid a repeat of the damages caused by previous pandemics, such as the Flu pandemic of 1918 which took over 20 million lives globally, countries around the world are adopting pushback measures against the disease. Borders are closed, movement is restricted and virtually every social event around the world is suspended.
However, while the world battles to curb the spread of the virus, the economic implications of the widespread nature of the disease and the measures adopted by countries to flatten the curve of the spread remains a matter of grave concern. The Dow, one of the most popular and widely-recognized stock market indices of the New York Stock Exchange – one of the strongest stock market in the world was on Tuesday down 20.04%, on pace for its worst year since 2008 when it lost 33.64%. Oil prices are down about 50% prior to the outbreak of the disease – hovering around 30 dollar per barrel. The International Monetary Fund (IMF) has confirmed that the pandemic has pushed the world into a recession. According to IMF, 2020 may be worse than the global financial crisis of 2008, just as Bloomberg reports suggest that the pandemic may cost the global economy about 2.7 trillion dollars – equivalent to the entire GDP of the U.K.
But what does this mean for everyone, particularly the poor masses – those who may not understand the statistics above?
World over, poor economic numbers or economic growth breeds poor economic development which naturally produces symptoms such as Job losses, decreased revenue for the government, low income for the working-class and low investment in infrastructure.
Nigeria, predicted to be the world fourth largest population by 2030, and currently having an estimated population of 200 million, with many of its citizen relying on daily earnings to survive, depends on the oil and gas industry for more than 90% of its export earnings and about 70% of government revenue. The adverse effect of the coronavirus outbreak on Nigeria’s economy is evident as the global demand for oil takes a downturn, consequently dragging the price of the commodity southward. The internal measures put in place by various levels of government to curb the spread of the virus is equally taking its toll on local businesses. Businesses are closed with majority of citizens required to stay indoors as the country battles the Covid-19 scourge which has so far infected about 270 persons within the country.
As the Nigerian economy, and indeed the global economy tightens, efforts must be made by all stakeholders within and outside government to stop hunger from becoming more widespread than it already is. With the rise in prices of food items, citizens must activate the spirit of empathy and support for one another during this period.
While those in government do their bit in providing relief for the poor and the vulnerable, we must all jointly as citizens assist one another through this difficult times. Efforts by the Government of Anambra State, the Senator representing Anambra Central Senatorial District, Senator Uche Ekwunife, National and State Assembly members, as well as stakeholders in various communities within the State to sensitize and provide assistance to Ndi Anambra are laudable and equally critical to our collective survival through this difficult period.
We must all rise to the occasion and take responsibility to mitigate the imminent economic challenges as well as encourage our people to make the necessary social adjustments needed to see an end to the spread of the disease. Together, we shall conquer.
Kingsley is a Lecturer, and the Special Adviser (Media and Publicity) to Senator Uche Ekwunife.
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