Question

The President of Nigeria addressed the Nation on 25th March, 2020 on Coronavirus (Covid-19) disease in Nigeria. In order to control the spread of Covid-19, the President of Nigeria announced several measures among them: temporal closures of learning institutions, bars, night clubs, suspension of all international flights at all airports in Nigeria, except for abuja International Airport, etc. These measures have an effect on the Nigerian economy. Hence:

1. (a) (i) Identify and discuss any five (5) sectors of Nigerian economy which have been positively affected as a result of Covid-19. .
   (ii) Identify and discuss any five (5) sectors of Nigerian economy which have been negatively affected as a result of Covid-19. .

2. (b) Given the National Income for Nigeria as Y= C+I+G+(X-M).
   (i) State what each letter in the equation stand for. .
   (ii) By using the equation above, discuss briefly how the National Income for Nigeria has been affected (either positively or negatively) by Covid-19. .

Answer 1

(a)(i) Sectors of Nigerian economy which have been positively affected as a result of Covid-19 are:

• Agriculture sector - growth in home based small micro agricultural developments/.
• Educational sector - working to change traditional education systems to online and digital systems, online courses
• Online services - Promoting online services in many fields
• Environmental sector - reduced pollution due to unnecessary transportations, shutting of factories etc
• Hospitality sector - employment in this fielld grown tremendously

(a)(ii)As the overall downturn looms, sectors of the Nigerian economy that are going to face the worse conditions are:

• The banking and other financial sector - recession and financial crises, supply chain delays, delay in sales, reduced operations, travel restrictions etc
• Real estate & Construction sector - regulatory declarations by federal and state governments restricting transportations, closing business functions
• Entertainment & luxury goods - significantlycaused the ability of corporate brands to disburse on advertising.
• Oil and gas industries - Due to COVID-19 and its spreading rate in Nigeria has called for intense survey and changes in the prior income desires and financial projections. Contrasted with occasions that prompted downturn in 2016, the present status of the worldwide economy acts more troubles ahead like the oil cost is right now underneath US$30 with projections that it will plunge further passing by the value war among key players in the business.
• Trade -  owing to the closing of factories for long duration, limited access to raw materials and products because supply chain challenges
• transportation sector.

These are all the major sectors in Nigerian economy which have been negatively affected as a result of Covid-19.

(b)(i) National income gives the fiscal value of the flow of output of goods and services manufactured in an economy in a  time period.

The rate of growth of national income (Y) gives ideas of:

• economic growth rate
• living standards changes
• Changes to the distribution of income

Here Y= C + I + G + (X-M) in which

• C- Household spending on goods and services
• I - Capital Investment spending
• G - Government spending
• X- Exports of Goods and Services
• M - Imports of Goods and Services

(b) (ii)

Business actvities have been disturbed all inclusive as Covid-19 pandemic escalate. Overall meetings, lawful social affairs, games, political assemblies, monetary exchanges, have all been influenced by the flare-up. Financially, the worldwide flexibly chain considerably depends on creation from China. The interruption in China consequently influences practically all economies and markets. Subsequently, American, European and African markets have been on a bearish run.

While the World effectively seeks after an antibody to battle the pandemic, the pandemic has been of dilapidating impact on the Nigerian economy. The National Bureau of Statistics (NBS) announced that the Nigerian economy progressed by 2.55 percent in the last quarter of 2019. On the off chance that the Covid-19 pandemic isn't contained, and oil value keeps on plunging, the Nigerian economy may contract into a negative impact. Given overpowering reliance on oil receipts, negative monetary developments of over two months will dive the economy into a downturn. As the World proceeds with its pursuit and advancement of an immunization to battle Covid-19, it is anticipated that if the pandemic keeps on spreading on coming day,  arrangements might be proactive instruments to engrossing the impacts of a monetary downturn in Nigeria, while the administration looks towards seeking after capital tasks and making approaches to invigorate exchange and speculation for long haul supportability.