SECTORAL ANALYSIS OF CORONA VIRUS ATTACK IN NIGERIA: AN EMPIRICAL DIAGNOSIS AND SOME POLICY IMPLICATIONS

Abstract:

Recently the depth and extreme consequences of coronavirus in Nigeria have been alarming. In the last few months, the government has undertaken various steps by introducing certain policies that would help in reducing, if not eradicating the socio-economic implications of this novel virus outbreak in Nigeria. The study examines the implications of COVID 19 on the economic status of Nigeria using a daily time series data analysis for eighty-one days during the first heavy lockdown (27th February 2020 to 17th May 2020). The data used for the study were extracted from secondary sources: the NCDC reports, CBN reports, Nigeria Stock Exchange reports, Accuweather reports, and Bloomberg within the period of the study. The data was analyzed using the ordinary least square regression incorporating the correlation test. The study found that daily COVID 19 confirmed cases and daily FOREX rates have a negative and significant impact on daily oil price, a mirror of daily output growth whereas daily share index has a positive impact. Only the daily temperature report was insignificant but positive in the model. The study recommended that Nigerians should strongly adhere to the preventive guidelines as stipulated by the Nigeria Centre for Disease Control (NCDC) in line with World Health Organisation (WHO) recommendations.

Keywords: Coronavirus, Nigeria, daily crude oil price, daily forex rate