The Economic Consequences of the Covid-19 Pandemic in Nigeria

Adesoji Farayibi () and Simplice Asongu
Additional contact information
Adesoji Farayibi: University of Ibadan, Ibadan, Nigeria

No 20/042, Research Africa Network Working Papers from Research Africa Network (RAN)

Abstract: The Covid-19 pandemic has generated shocks that have caused economic fluctuations globally, calling for an understanding of the behaviour of macroeconomic variables. This study presents an early review of the macroeconomic impact of the Covid-19 pandemic in Nigeria. The aggregate supply and aggregate demand (AS-AD) model provides the theoretical motivation for the study. From the findings, while the number of infected cases reflects significant correlations with economic activity from the perspective of a trend analysis, the estimates from dynamic ordinary least squares (DOLS) show that nexuses between the number of confirmed cases and attendant macroeconomic outcomes are largely insignificant with the expected signs. The study has therefore shown that the Covid-19 pandemic has insignificant negative impacts on basic macroeconomic variables in Nigeria such as inflation, employment, exchange rate, GDP growth, among others. In other words, time is required before the established correlations withstand empirical scrutiny in terms of causality. As the government has engaged the Economic Sustainable Plan (ESP, 2020), which is a post-Covid-19 recovery plan, it is hoped that the attendant policies would be properly implemented so as to provide the critical mass to repositioning the country’s economy on the path towards inclusive and sustained economic development.

Keywords: Corona virus; Macroeconomics effects; Covid-19; AS-AD Model; Community Transmission; Nigeria (search for similar items in EconPapers)
JEL-codes: E10 E12 E20 E23 I10 I18 (search for similar items in EconPapers)
Pages: 24
Date: 2020-01
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://publications.resanet.org/RePEc/abh/abh-wpap ... demic-in-Nigeria.pdf Revised version, 2020 (application/pdf)

Related works:
Working Paper: The Economic Consequences of the Covid-19 Pandemic in Nigeria (2020)
Working Paper: The Economic Consequences of the Covid-19 Pandemic in Nigeria (2020)
Working Paper: The Economic Consequences of the Covid-19 Pandemic in Nigeria (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:abh:wpaper:20/042

Access Statistics for this paper

More papers in Research Africa Network Working Papers from Research Africa Network (RAN)
Bibliographic data for series maintained by Anutechia Asongu Simplice ().