Victim of the oil crisis, Nigeria's economy in a doldrums

A trader behind his stand in a market in Lagos, during a pandemic, on March 30, 2020. REUTERS / Temilade Adelaja / File Photo

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Nigeria begins a partial and gradual deconfinement on Monday. For the Nigerian economy, which will experience its second recession this year in four years, this beginning of deconfinement is a ray of hope when the prospects are very bleak.

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If the deconfinement is partial, the collapse is almost total. The Nigerian economy has suffered greatly from the consequences of the pandemic and in the first place from the fall in oil prices . The federal government had to urgently cut the equivalent of $ 5 billion from its budget. Ministries and public enterprises have seen their allocations reduced by 20 to 25%. In Nigeria when oil is bad, everything is bad. It provides the country with 90% of its foreign exchange earnings. Suddenly, it is expected a sharp drop in imports.

The country is food deficit and imports four to six billion dollars worth of food each year, mainly wheat and rice. With its 200 million inhabitants, two thirds of whom live below the poverty line, Nigeria will have to find a solution to avoid a food crisis. Already five to six million people go hungry every day. So far, Abuja has called on its donors for help  , demanding $ 7 billion. But the country does not rule out resorting to new loans on the international markets.

Deconfinement: between joy and prudence

The deconfinement which begins does not concern the State of Kano where many deaths remain unexplained. Interstate borders will also remain closed and the curfew will still be in effect. The federal state imposed containment in three states including Lagos and Abuja, but many local governors also imposed containment or semi-containment.

Millions of people are affected, in the country's largest city, Lagos, and in the capital Abuja. From this Monday evening a night curfew (8 p.m. - 6 a.m.) must come into effect. And wearing face masks will be mandatory. How is this reduction perceived on the spot? Report in Abuja.

I'll take my time before I go out. People are going to rush in now that the containment is going to be eased here. Many people have been locked up for more than a month. People suffocate and lack freedom. I have to be careful. I have to pay attention. It's a terrifying situation because Covid-19 is an invisible disease

Partial reduction of confinement: report from Anita Manuel, owner of PME

Moses Gomis

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  • Nigeria
  • Oil
  • Coronavirus

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