The covid 19 crisis seems to be more than a health or sanitary one for it has the potential to generate a long

lasting
and damaging social and economic impact. The overall uncertainty on the employment market leads to people losing
jobs and income without knowing when they might be restored. In Nigeria some sectors showed early signs of
vulnerability such as tourism, transportation and logistics in supply chains but also and more difficult to measure the
crosscutting informal sector. However, the impact of the lockdown in Nigeria shows that virtually all the sectors
were badly hit and the few that could be said to be operational did not perform optimally. The Oil and Gas Sector
was not spared by the pandemic as the slump in crude oil prices due to weakening global demand for Brent crude,
Nigeria’s benchmark grade, dropped by over 60 percent since the beginning of the year. The crash in global oil
prices has necessitated the downward adjustment of the reference price of crude oil from $57 per barrel to $30 and
further down to $25 per barrel for the implementation of the 2020 budget.

TAUNA MARY LYABHUK (P18DLBA81055)

The Aviation Industry is still locked down and according to the Nigerian Minister of Aviation, Hadi Sirika, over
100,000 jobs had been lost in the aviation sector due to the coronavirus pandemic. Sirika said on Thursday, May 7 at
the daily briefing of the Presidential Task Force on COVID-19 in Abuja that the Nigerian aviation sector had been
dealt a severe blow by the pandemic, noting that airlines have lost nearly N17 billion monthly since their operations
were grounded, as part of efforts to curb the spread of the virus. “We are the worst hit, than any other sector. Some
N17 billion monthly is being lost by the airlines, no thanks to COVID-19,” the minister said, adding: “we will not be
able to open up after closing for several weeks and perhaps for some months.”

The other sectors that have been impacted negatively include: The Banking sector experienced limited operations
during the lockdown and the plan by some of the banks to lay off staff due to difficult operating environment had
been halted by the Central Bank of Nigeria.

The Hospitality and Entertainment Industry has been one of the worst hit sectors in Nigeria. The lockdown resulted
in the cancellation of many bookings and the closure of many hotels. The Entertainment section was also affected
negatively as all the film and entertainment companies had to close down for the period of the lockdown and after
easing of the lockdown. Some of the managers in the industry have lamented the closure of their businesses,
especially the cancellation of the bookings made before the pandemic.

Specifically, the Nigerian economy, which was already fragile before the outbreak of coronavirus late in 2019, was
among the sectors worst hit by the pandemic. Speaking recently on the effect of COVID-!9 on the Nigerian
economy, the Minister of Finance, Budget and National Planning, Zainab Ahmed, said that prior to the outbreak of
the coronavirus pandemic, the Nigerian economy was already fragile and vulnerable.

She explained that the global economic crisis due to the coronavirus pandemic has resulted in unprecedented
disruptions to global supply chains, a sharp drop in global crude oil prices, turmoil in global stock and financial
markets, the lockdown of large swath movements of persons in many countries, among others.

These outcomes, according to the Nigerian minister, have had severe consequences on households’ livelihoods and
business activities, resulting from drop in global demand, declined consumer confidence and slowdown in
production. She said that Nigerian government has since revised its 2020 budget, slashing its revenue projection by
about 40% and seeking emergency support from the International Monetary Fund, the World Bank and the African
Development Bank to be able to execute the 2020 budget.

In conclusion, COVID-19 indeed has revealed new challenges, as well as new opportunities for business
enterprises. The uncertainty will remain due to the impacts of the virus and this long this impact will last for long.
Government social, business and economic policies are changing rapidly. Therefore, finance will need to help
businesses digest new information quickly and act swiftly as circumstances change. Finance professionals should
bear in mind that while survival of their own business will be the priority, they also need to consider the public
interest and should therefore take account of the knock-on effects to customers, suppliers, employees and other
stakeholders. Cash flow management and obtaining financial support where necessary will be fundamental but
businesses will also need to consider providing support to employees, customers and suppliers.

REFERENCE

1. http://apanews.net/en/news/nigerian-economy-and-traumatic-impact-of-covid-19-pandemic

2. 2. https://auren.com/int/blog/the-impact-of-covid-19-on-corporate-finance-activity/