Nigeria: Government Covid-19 Interventions to Promote Inclusive Adaptation and Economic Recovery

Abstract

The Covid-19 pandemic has been a major and global public health challenge. Like every other country, Nigeria has suffered huge human and economic losses. About 87,607 cases of Covid-19 and 1,289 deaths had been reported by 31 December 20201. The Nigerian economy shrank by 1.8% in 2020, mainly as a consequence of the effects of the pandemic. In addition, the unemployment rate rose from 23.1% in the third quarter of 2018 to 27.1% in the second quarter of 2020, according to the National Bureau of Statistics (NBS).

Different sections of Nigerian society were affected in different ways. In particular, the informal sector and small and medium-sized enterprises (SMEs) were the most affected, as well as poor households (NBS, 2021). The pandemic also had a disproportionate impact on women (UN, 2020).

To mitigate the negative economic effects of the pandemic, the Nigerian Government implemented monetary and fiscal policies, as well as income support policies and programmes to safeguard the most vulnerable economic groups. These interventions translated to increased government expenditure, a decline in government revenue (as a result of lower demand for crude oil exports) and a growth in the government budget deficit and public debt.