MACROECONOMIC EFFECT OF COVID-19 ON A CONSUMING OIL ECONOMY: EVIDENCE FROM NIGERIA
Joseph Fefa, Bridget N. Mile & Victor U. Ijirshar
Department of Economics
Benue State University, Makurdi, Nigeria
ABSTRACT
This study examines the macroeconomic effect of COVID-19 on the Nigerian consuming oil economy. Descriptive tests and correlation analysis were used for data analysis. The study found that the COVID-19 pandemic has portended severe economic consequences on the Nigerian economy leading to unprecedented oil price crash and lower demand which resulted in negative effects on key macroeconomic variables in the country. The COVID 19 pandemic has also exerted negative effect on the exchange rate, real growth rate, consumer price indices, and unemployment in the country. Therefore, the study recommends for the full implementation of the Nigeria “Economic Sustainability Plan” to mitigate the effects of the COVID-19 pandemic on Nigeria’s economy. The study further recommends that the Nigerian government should support agricultural production with the aim of diversifying her economy to improve export potentials and also engage SMEs through granting of soft loans with extended moratorium or grants to SMEs.
Keywords: COVID-19, Consumer price index, Crude oil price, Exchange rate, and real growth rate
JEL Classification: E31, I15, O47, O24
