Business in Nigeria – KPMG Nigeria

COVID-19: Economic Research, Impact & Planning
Economic Research
The COVID-19 pandemic has triggered a global health crisis with profound economic implications. As businesses worldwide, including those in Nigeria, grapple with the effects, the need for comprehensive economic research has never been more critical. The pandemic’s impact extends beyond health, significantly affecting commercial activities and economic stability on a global scale.

The virus's reach is borderless, causing widespread disruptions. Recent assessments reveal that 94 percent of Fortune 1000 companies and many businesses in Nigeria have already encountered substantial interruptions due to COVID-19. While we anticipate that, like previous outbreaks such as Ebola, Zika, and SARS, the immediate health threat of COVID-19 will eventually diminish, its socioeconomic ramifications are expected to linger.

Impact of COVID-19 on Nigeria
Nigeria is facing a unique challenge due to its dual exposure to the COVID-19 pandemic and an oil price shock. This combination, known as the Twin Shock, presents significant hurdles for Nigeria’s economy, which is heavily dependent on oil revenues. The pandemic’s global and domestic effects exacerbate the country’s economic vulnerabilities.

Nigeria’s reliance on global economies for fiscal revenue, foreign exchange, and capital flows makes it particularly susceptible to external shocks. The current economic situation underscores the importance of thorough economic research to navigate these turbulent times.

The Twin Shocks are likely to impact Nigeria’s economy through three primary channels: supply, demand, and financial.

The ongoing crisis emphasizes the necessity for targeted economic research to understand and mitigate these impacts. Businesses in Nigeria must adapt to the evolving economic landscape and leverage insights from research to navigate the uncertainties ahead.