Nigeria

Confirmed cases

Deaths

Recoveries

Overview

Nigeria has been severely hit by the spread of COVID-19 and the associated sharp decline in oil prices. Government policy is responding to both these developments. The authorities have reported 6677 cases of COVID-19 and 202 deaths as of May 21, 2020. Over 40,043 samples have been tested. A range of measures were implemented to contain the spread of the virus, including closure of international airports, public and private schools, universities, stores and markets, and suspension of public gatherings, and lockdown of some states.

On March 29, President Buhari announced a cessation of movement in the Federal Capital Territory and in Lagos and Ogun States to reduce the spread of COVID-19. The lockdown went into effect at 11:00 pm on March 30 and will remain in place for an initial period of fourteen days. During this time, businesses and offices must remain closed and people are expected to stay at home. The lockdown has some exemptions, including hospitals and healthcare facilities and some commercial establishments in the food, energy, petroleum, and security sectors. Many hotels have already closed and we anticipate more will close in response to this lockdown announcement.

Economic Measures

Reopening of the economy. Ease of lockdown continued with extended curfew from 8pm to 6pm every day in Abuja, Lagos, and Ogun state; lockdown in Kano state was extended for another two weeks; some states have lifted partial lockdown on May 21 and allows religious congregation. Nationwide measures were introduced, including nighttime curfew, ban on non-essential inter-state passenger travel, partial and controlled interstate movement of goods and services, and mandatory use of face masks or coverings in public. Work at home is also encouraged in several states and government institutions while isolation centers are being expanded in Lagos state. The president ordered the release of inmates in correctional facilities to decongest prisons.

Key Policy Responses

FISCAL

Contingency funds of N984 million ($2.7 million) have been released to Nigeria’s Center for Disease Control, and an additional N6.5 billion ($18 million) was distributed for purchasing more testing kits, opening isolation centers and training medical personnel. Grant of N10 billion ($28 million) was released to the Lagos State to increase its capacity to contain the outbreak. The government is reviewing its 2020 budget and, given the expected large fall in oil revenues, announced plans to cut/delay non-essential capital spending by N1.5 trillion (close to 1 percent of GDP). A fiscal stimulus package, in the form of a COVID-19 intervention fund of N500 billion ($1.4 billion), has been approved by the President to support healthcare facilities, provide relief for taxpayers and incentivize employers to retain and recruit staff during the downturn. Import duty waivers for pharmaceutical firms will be introduced. Regulated fuel prices have been reduced, and an automatic fuel price formula introduced to ensure fuel subsidies are eliminated. The President also ordered an increase of the social register by 1 million households to 3.6 million to help cushion the effect of the lockdown.

MONETARY AND MACRO-FINANCIAL

The Central Bank of Nigeria (CBN) maintained its current monetary policy rate in March but introduced additional measures, including: (i) reducing interest rates on all applicable CBN interventions from 9 to 5 percent and introducing a one year moratorium on CBN intervention facilities; (ii) creating a N50 billion ($139 million) targeted credit facility; and (iii) liquidity injection of 3.6 trillion (2.4 percent of GDP) into the banking system, including N100 billion to support the health sector, N2 trillion to the manufacturing sector, and N1.5 trillion to the real sector to impacted industries. In addition, the CBN announced another N1 trillion support to the agriculture sector as food shortages looms. Regulatory forbearance was also introduced to restructure loans in impacted sectors. The CBN is also coordinating a private sector special intervention initiative targeting N120 billion ($333 million) to fight COVID-19. As of April 16, N42.6 billion was received, including $50 million grant from the European Union. The Nigeria Solidarity and Support Fund was established, looking to raise $50 million to support physical infrastructure of healthcare centers in Local Governments and existing Social Investment Program.

EXCHANGE RATE AND BALANCE OF PAYMENTS

The official exchange rate has been adjusted by 15 percent, with an ongoing unification of the various exchange rates under the investors and exporters (I&E) window, Bureau de Change, and retail and wholesale windows. The authorities committed to let the I&E rate move in line with market forces, and it has so far depreciated by about 4 percent. A few pharmaceutical companies have been identified to ensure they can receive FX and naira funding. While I&E window turnover has been low since April, the CBN has resumed FX supply in some of the other windows.

Source : IMF & WB

Civic Freedom Tracker

BAN ON GATHERINGS

The government of Niger State issued an order banning gatherings of more than 50 people, indefinitely, to combat the spread of COVID-19. (See primary source or citation here)

Type: law
Date Introduced: 18 Mar 2020
Issue(s): Assembly

LOCKDOWN ON BAUCHI STATE

Nigerian authorities announce a 14-day lockdown on Bauchi state to prevent further spread of coronavirus disease (COVID-19). Citizens are ordered to stay at home, with permission to leave to buy food and seek medical care between 10am and 4pm on Wednesdays and Saturdays only.

Type: order
Date Introduced: 1 Apr 2020
Issue(s): Movement

LOCKDOWN ON MAJOR CITIES AND STATES

The presidential order institutes a 14-day lockdown on individuals' movement in Abuja, Lagos, Ogun State and the Federal Capital Territory. The lockdown does not apply to hospital and medical institutions and certain commercial establishments including food, petroleum, electricity, and private security companies. (See primary source or citation here)

Type: order
Date Introduced: 30 Mar 2020
Issue(s): Movement

PROHIBITION ON MASS GATHERINGS

The Presidential Task Force on countering the coronavirus threat reiterates a ban on gatherings of 50 or more people. (See primary source or citation here)

Type: order
Date Introduced: 23 Mar 2020
Issue(s): Assembly

DATA USE TO COMBAT COVID-19

The Nigeria Governors' Forum has formed a partnership with MTN Nigeria, a telecommunication and internet service provider, to use subscriber data to combat COVID-19. The partnership has raised concerns over information sharing, privacy, and the protection of human rights. The data that will be used to develop services relating to COVID-19 will be personal information that was not originally shared or intended for this purpose. (See primary source or citation here)