Coronavirus Pandemic and Macroeconomic Indicators: A Study on the Structural Factors that Worsen Economic Crisis in Nigeria

International Journal of Economics and Management Studies

© 2021 by SSRG - IJEMS Journal

Volume 8 Issue 5

Year of Publication : 2021

Authors : Miftahu Idris

10.14445/23939125/IJEMS-V8I5P111

How to Cite?

Miftahu Idris, "Coronavirus Pandemic and Macroeconomic Indicators: A Study on the Structural Factors that Worsen Economic Crisis in Nigeria," SSRG International Journal of Economics and Management Studies, vol. 8,  no. 5, pp. 95-106, 2021. Crossref, https://doi.org/10.14445/23939125/IJEMS-V8I5P111

Abstract:

This study analyses the effect of COVID-19 pandemic on selected macroeconomic indicators in Nigeria, its effect on the economy and the structural factors that worsen the coronavirus (COVID-19) crisis. Using data from the Central Bank of Nigeria, and the World Bank, this study employs Johansen-Juselius multivariate cointegration techniques to estimate the relationship between exchange rate, crude oil price, inflation and economic growth in Nigeria. Findings reveal that the economic downturn in Nigeria was triggered by a combination of declining oil price, high rate of inflation, exchange rate and spillovers from the COVID-19 outbreak, which not only led to a fall in the demand for oil products but also stopped economic activities from taking place when social distancing policies were enforced. The government responded to the crisis by providing financial assistance to businesses and a small number of households that were affected by the coronavirus (COVID-19) outbreak. Therefore, the study recommended the need for government to build appropriate digital infrastructure to facilitate the transition from ‘face-to-face’ business activities to a ‘digital or online’ business activities, which can help to grow the digital economy.

Keywords:

COVID-19, Macroeconomic Indicators, Economic crisis, Johansen Cointegration

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