The COVID-19 (coronavirus) pandemic has spread across the world, with almost every country having been affected by it. With no vaccine currently available, and development of one at least a year away, if not longer, governments across the globe have been forced to enact strict lockdown and quarantining measures to try and control the spread of the virus. Some nations have gone for a complete lockdown, with the likes of Italy, France and India prominent on that list, while others, like the United States of America, are still in the midst of partial, state-wise restrictions. Nevertheless, with the number of cases, as well as fatalities, surging by the day, there really is no other option at present but to force people to stay at home and avoid contact with others.
Of course, this has had a huge impact on businesses all over the world. Any business or company that relied on people stepping out of their houses and spending money is struggling. Sectors like aviation, retail, transport and entertainment have been the hardest hit, with a number of companies already approaching their governments for help or bailouts. Employees have suffered as well, with many millions being laid off and losing their source of income just when they need it the most. The case of the United States, where the number of people registering for unemployment benefits has gone into the millions in the last few weeks, is a stark reminder of what a prolonged shutdown can do to an economy. However, there are still options for certain sectors. As an example, the casino and gambling sector has been hit hard, with all the global gambling hotspots of Las Vegas, Atlantic City, Macau etc having to close down due to this pandemic. However, with the availability of online casino and gambling platforms, there is still some respite available for operators, who can try to provide customers with some form of entertainment and gaming while they are at home. In fact, because the majority of people are at home at the moment, the attractiveness of this option increases manifold. It is the same for other entertainment providers as well, with the gaming, online streaming and even online news industries seeing a rise in engagement and usage during this time.
Nigeria is one of many countries that has been affected by the COVID-19 pandemic, with economic activity slowing down considerably. What makes it worse for Nigeria and other African countries is that the majority of African businesses are small businesses, and thus are extremely vulnerable to any such shocks or disruptions to the system, as they would not normally have the cash reserves or resources to ride out a few months of losses and low revenue. With Lagos and Abuja, the commercial hub and capital of the country, respectively, going into shutdown, it has caused a lot of concern and fear among the country’s small business owners and employees.
Therefore, the Nigerian government has announced some relief measures to try and mitigate this crisis as much as it can. It has extended the deadlines for filing tax returns every month, while the government has also announced that it will start paying cash transfers to over 10 million of the country’s poorest people, who have been hit the hardest by the economic crisis, due to the unavailability of daily-wage jobs. Further, the central bank has also retrospectively lowered interest rates by as much as 4%, effective from 1st March, and has also announced over $130 million in credit relief for small businesses which have been affected by the shutdowns. Mortgage payment deferments, tax rebates, and import duty waivers are some of the other financial measures that the Nigerian government is putting in place to aid its citizens. However, given the population of the country, as well as the fact that oil prices have fallen by nearly half over the last month (nearly 90% of Nigeria’s foreign exchange revenue comes from oil exports), there is a need for more help, as well as for international organizations to step in and try to help African nations. To this end, the African Development Bank, the International Monetary Fund, and the World Bank have all announced measures to support developing and low-income countries during this time. The IMF has announced that over $50 billion in funding is available for low-income and emerging economies, while the World Bank approved a $14 billion package of fast-track funding to help countries and firms that have been impacted by the COVID-19 crisis. The African Development Bank has launched a social bond, called Fight COVID-19, by selling more than $3 billion of bonds, to raise funds for African nations during this time.
Thus, while Nigeria and other African nations have been hit hard by the pandemic, governments and organizations are doing all they can to reduce the pain for citizens and try and ensure that there is enough funding available to help the people who need it the most.
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