As at 12th March 2020, Nigeria has recorded only two cases of the Corona virus which it seems to be managing well. However, the more frightening impact of the virus for Nigeria is on the global oil market which has crashed oil prices from the 2020 budget projections of $56 per barrel to a scary low of $31 Dollars as of yesterday. The 2020 budget of N10.33 Trillion was already a deficit budget (the Nigerian government needed to fund N2.18Trillion through borrowing) with oil revenues estimated at N2.6 Trillion at $56 per barrel.
Unless there is a significant increase in oil prices during the rest of 2020, the effects of the Corona Virus will add to Nigeria’s misery by increasing the budget deficit, possibly triggering off a devaluation of the Naira which could cause hyperinflation.
This morning our Managing Partner – Vivian Ani was on TVC this morning to discuss this and other matters.
Watch the video above or here https://youtu.be/Hmkv50Vi5qs