The Impact of Covid-19 on Trade and Policy Response in Nigeria

Abstract

The COVID-19 pandemic despite its toll on human lives and its herculean demands on the global health system also came along with it, a global economic shock that has negatively affected the economies states in the world, thereby plunging them knee deep into recession. This paper analysed the impact of COVID-19 pandemic on trade in Nigeria. The paper used qualitative method of research inquiry to identify some of the impact of the pandemic on trade to include reduced revenue from export trade, low level of export trade, fall in global crude oil prices due to cut in global demand, erosion of stock values at the stock market, increased number of clearing delays at ports, delays in clearing of banking instruments, elongation of projects’ life span, suspension of planned investments, labour force constrains occasioned by imposed restrictions, suspension of outstanding tax obligations, suspension of trade and productive activities that are dependent on import inputs as well as low volume of domestic trade due to poor cash flows, among others. Finally, the study recommends increased and transparent liquidity provision for business enterprises that have been affected by COVID-19 pandemic in order to push them back into full productive activities as the lockdown is eased off. It equally recommends that the Central Bank of Nigeria should initiate policies that will assist corporate businesses in managing massive staff layoffs, through the infusion of intervention funds into such businesses as that will help to curb the rightsizing, downsizing and unemployment scenario in Nigeria that has become worrisome and aggravated by the pandemic.

Keywords: Covid-19 pandemic, import and export trade, financial market, financial crisis, global recession & Nigeria