By Yusuf Sani Maitama
INFOMEDIA – The world had before this time witnessed a number of Infectious diseases that shaped the world economy for centuries which created an untold hardship, rigor and injured global economy. Think about the Black Death, plague, cholera, Spanish flu and SARS.The new coronavirus Covid-19 most probably be added to this list and become part of our collective memory as an event that shaped societies and economics.
One of the devastating consequences of the economic impact of the recent novel coronavirus pandemic is shutting down the economy. Several businesses in particular medium and small scale businesses have already shutdown, and that it will be difficult for them to reopen without an intervention from the government.
People around the world are now cladding the economic risks and consequences of the outbreak of pandemic because the resultant effect include losses of jobs and vacuum of redundancies with the consequent impact on poverty which will in turn affect the spending capabilities and inability of businesses to sell their goods and or services especially in African countries and Nigeria in particular.
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More recently in Abuja, Lagos, Kano those are state that have more infected cases in Nigeria, in view of the population, size and scope of the economic impact of the pandemic in the above mentioned states, there is a dire needs to implement some recovery strategies to cushion the economic impact of the pandemic.
I recommend fiscal and monetary policy to be measure by the federal in collaboration with the various states government.
Proper distribution of foodstuffs to individuals. Federal Inland Revenue Service (FIRS) and States Inland Revenue Service (SIRS) should delay tax collection for the worse-hit sectors including tourism, the airline industry, and hoteliers in order to enable them recover from the steep decline in demand.
This move would ease up forex shortage in the financial market and economy by crashing down the price of goods and services to enable the citizen purchase their needs.
Ensure fast payment of workers in both Federal and states level. Government purchases should increase which will typically assists to run budget deficits, utilize fiscal stimulus measures to counteract the fall in consumer spending.
However, governments that are commodity dependent, the fall in the global demand for commodities stemming from the pandemic will significantly increase their fiscal deficits.
There is now a real possibility of L-shaped growth, slower growth for some time in 2020 if deglobalisation accelerates and the real crisis in supply and demand spills over to financial markets.
Yusuf Sani Maitama writes from Bayero university, Kano via:
[email protected]
