Covid 19: Nigeria’s economy can’t stand extension of lockdown — Yusuf

—–Says economy will require up to 1yr to rebound

COMFORT EKELEME

Worried over the current state of the economy, Director General, Lagos Chamber of Commerce and Industry (LCCI) Muda Yusuf said that the Nigerian economy cannot afford another lockdown having been dormant for one month.

Speaking in a television program monitored in Lagos, Yusuf said “I don’t think this economy can afford another lockdown at the end of this current lockdown.

“I think we need to come up with a model that will allow the economy to continue to function even if it is partially, while we deal with this pandemic, we cannot afford to continue to shut the economy completely as a solution to this pandemic,” he said.

It would be recalled that it was in a bid to contain the spread of the coronavirus that the federal government decided to lockdown Lagos, Federal ​ Capital Territory (FCT), Lagos and Ogun. Following the spread of the virus to other states, some state governors decided to lockdown their states.

The federal government equally shut down the airpace as part of efforts to contain the pandemic in Nigeria.

The lockdown directives, no doubt led to the shutdown of many businesses, especially those that cannot function from homes. Only businesses proffering essential services was exempted from the lockdown directive; hence, the nation’s economy is adversely affected.

According to Yusuf, for Nigerian economy to rebound, it will take close to a year because a lot of things have been affected which the micro economic fundamentals.

Explaining further, he mainatined that in many cases, the microeconomic fundamentals have even collapse. “And we are dealing with oil price situation now, we are not sure when that will end. Beacuse this has both domestic and global dimension.

“it will take close to a year if not more for us to get a total rebound and in any case, not all busineses will be able to come back because some major adjustment will take place, many sectors will strugle to be able to find their seat after this pandemic. So it is going to be challenging. It is going to be positive though, but the recovery is going to be very slow and gradual,” he maintained.

Presently, the Tourism and Aviation are among the worst hit sectors of the economy following the ​ lockdown and travel restrictions which has resulted to a huge slump in demand among travellers. As at March, the International Air Transport Association (IATA) had reported an estimated revenue loss of $252 billion in the sector globally.

Also, the Hospitality Industry, Cinemas and Entertainment, Oil and Gas Industry, Real Estate and Construction, Manufacturing are currently counting their loses.

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