Nigeria has extended the second phase of nationwide lockdown for four weeks. This is the third time the government is extending the second phase of the eased lockdown
Nigeria imposed the first phase of lockdown in March for five weeks in Federal Capital Territory, Lagos, and Ogun State. The first phase of relaxed lockdowns commenced in May characterized by a nationwide night curfew (8pm to 6 am) and elapsed on June 1.
On June 2, Nigerian authorities imposed the second phase of lockdown which was extended on June 29 by four weeks to July 29. This was then extended by a week which elapsed on Thursday 6 prompting the latest extension.
Boss Mustapha, chairman of the presidential task force on COVID19, said the latest extension will strengthen collaboration between the federal and state governments to harmonize Nigeria’s COVID19 response.
Nigeria has recorded the third highest coronavirus infections with 44,890 cases and 927 deaths
Economic impact
The lockdown enforced since March has seen Africa’s largest economy suffer revenue losses due to low demand for its main export, crude oil. In the baseline, the World Bank expects the Nigerian economy to contract by 3.2 percent in 2020 translating to a $20 billion loss to GDP.
READ ALSO: Nigeria Oil Revenues Likely to Decline by $17Bn in 2020
The fall of crude oil price has hurt Nigeria’s foreign exchange inflows as oil contributes the largest amount of foreign exchange.
Furthermore, the West African nation has had to revise downwards crude production from 2.18 million to 1.94 million barrels per day (bpd) and crude price outlook from $57 to $25 per barrel. This has seen the Naira depreciate against the US dollar prompting action from the Central Bank of Nigeria.
Nigeria has also had to comply with an oil output quota of 1.412 million bpd for May, June, and July imposed by OPEC. The oil cut was meant to stabilize crude prices in the international markets as coronavirus has reduced global demand by a third.
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