An Insight into the Influence of Corona Virus Surge on Nigerian Economy

Abstract

The study explored the emergence of a novel virus disease called covid-19 that is ravaging, devastating both human health and global economy and dissect vis-à-vis Nigerian economy. Ordinary Least Square Regression (OLSR) was used to analyse Total Nigeria Confirmed Cases (TNCC), Total Africa Confirmed Cases (TACC) and Total Global Confirmed Cases (TGCC) as exogenous variables while the endogenous variables are market capitalisation, (mcapt), foreign exchange rate of US-Dollar to Naira (usnaira) and crude oil price per day (copd) for period of 182 days. The result revealed that covid-19 pandemic has had an adverse impact on market capitalisation, exchange rate and crude oil price and Nigerian economy as a whole. We recommend that bailout funds should be made available to stakeholders in the capital market, funds in foreign exchange reserve accounts should be used to hedge foreign exchange fluctuations and funds in excess crude oil accounts should be used to cushion the effect of fall in crude oil price.

Keywords: COVID-19, Foreign exchange rate, Crude oil, Market capitalisation

JEL: D 53, F 31, I 15

DOI: 10.7176/RJFA/11-18-02

Publication date:September 30^th 2020