| Nigeria Economy |    1393 VIEWS  |
| Nigeria Economy | |
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Friday, June 05, 2020 / 09:54 AM / by NBS / Header Image Credit: @sgyemikale
Introduction
Nigeria
was among the first countries in Sub-Saharan Africa to identify cases of
COVID-19. The Government has since implemented strict measures to contain the
spread of the virus. Additionally, global oil prices plummeted by a dramatic
60% following the spread of the pandemic and since the oil sector accounts for
the bulk of government revenue, this is expected to substantially weaken the
Nigerian economy.
The
federal government will have fewer resources available to simultaneously combat
the public health crisis of COVID-19 and a weakening economy. In order to track
the impacts of the pandemic, the National Bureau of Statistics implemented the
Nigeria COVID-19 National Longitudinal Phone Survey (COVID-19 NLPS) on a
nationally representative sample of 1,950 households. COVID-19 NLPS households
were drawn from the sample of households interviewed in 2018/2019 for Wave 4 of
the General Household Survey-Panel (GHS Panel).
The
extensive information collected in the GHS Panel just over a year prior to the
pandemic provides a rich set of background information on COVID-19 NLPS households
which can be leveraged to assess the differential impacts of the pandemic in
the country. This brief presents findings from the baseline of this survey
which was conducted between April 20 and May 11, 2020 and coincided with a
federally mandated lockdown that was initiated on March 30, 2020.
Summary
Knowledge and Concerns of COVID-19 Transmission
97% of
respondents reported that they knew handwashing was a measure to help reduce
the risk of contracting COVID-19, while only 63% of respondents knew that
avoiding touching their face is also a preventative measure. Knowledge of
appropriate social distancing measures was also high among all respondents. The
majority of respondents reported being concerned that COVID-19 could have a
negative impact on their health and financial status. 78% reported being “very
or somewhat worried†about themselves or an immediate family member becoming
seriously ill from the coronavirus, while 92% reported that the coronavirus is
a “substantial or moderate†threat to their household's finances.
Employment And Livelihood
The
survey revealed that 42% of respondents who were working before the outbreak
were no longer working the week preceding the interview for reasons related to
COVID-19. The poorest households (from the lowest consumption quintile) reported
the highest share who stopped working (45%) but the rate was also high for the
wealthiest households (39%)
Workers in all sectors
were affected by the pandemic, but primarily those working in commerce,
services and agriculture. 14% of respondents were working in the commerce
sector before the outbreak but have since stopped working due to COVID-19. This
is equivalent to 60% of all those working in the sector prior to the pandemic.
In all sectors, respondents that stopped working reported that COVID19 related
economic impacts were the primary cause.
A high
rate of households reported income loss since midMarch. 79% of households
reported that their total income decreased. Income from all sources were
affected by the pandemic and reported to have decreased since mid-March.
However, the rate was highest for income from non-farm family business (85%)
compared to household farming, livestock or fishing (73%) and wage employment
(58%).
Access to Basic Needs
A high
percentage of households (35-59% of those that needed them) reported not being
able to buy staple foods like yam, rice and beans during the 7 days prior to
the interview when they needed them. Soap and cleaning supplies were reported
by households to be the most commonly needed items, though most households were
able to purchase these items. 26% of households who needed medical treatment
reported not being able to access treatment.
Safety Net and Coping
When
compared to the period between January 2017 and January 2019 as reported in the
GHS-Panel data, it is clear that the same households interviewed in the
COVID-19 NLPS have experienced more economic shocks following the pandemic.
Increases in the price of major food items consumed (85% of households) and
farming/business inputs (46%) were most widely experienced. Serious disruptions
of economic activities were also experienced, particularly nonfarm business
closure (36%) and disruption of farming activities (29%). While households are
facing economic shocks, they are also attempting to adapt. However, many
households appear to be turning to coping mechanisms that can have further
negative impacts such as reducing food consumption (51% of all households).
Many households are also drawing down their savings (29%) in response to these
shocks.
Education
School
closure prompted by the pandemic is reducing children’s opportunity to learn.
38% of households with children who attended school prior to school closures
due to the pandemic reported that their children did not engage in any
learning/education activities during the 7 days prior to the interview. Poorer
households have higher rate compared to wealthier households. 81% of households
also reported that they did not have any contact with children's teachers since
schools were closed.
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