CHAPTER ONE
INTRODUCTION 1.1 Background to the Study
Human suffering and loss of life as found by a corona virus pandemic that is officially certified on a worldwide basis is the first and greatest component of this outbreak, showing deaths with a ratio between mortality number of human cases committed globally on a minimum of 1.3 million confirmed at 15, 2020. WHO (2020). Nevertheless, this sort of pandemic will have substantial multidimensional impacts, such as environmental and economic implications. Although the impact of the pandemic on economic implications will change, 30 percent of the global population, with country specific sole command, has now become a stop on this oral malicious event, subject to a serious concentration of COVID-19 contamination. This, with ~80 percent of foreign employees shut down their employment and an expected contraction of 0.3 percent, has already seen serious economic consequences (the worst since the Great Depression).
Most SMEs in Anambra State and Imo state have recently suffered tremendous casualties as a result of the Corona virus pandemic ofCovid 19. Infact. Both the public and private sectors of Covid-19 caused immense turmoil, hurt and destruction. If the states’ economies face an existential risk, policymakers and companies grappling with the consequences, the financial crisis will become undisputed. There has been a growing concern about the potential for the pandemic, especially to small and medium-sized industries (SMEs) in Imo and Anambra States. Even though the health impact of crisis is significant, the economical consequences are equally catastrophic, especially for companies who are not big.
Ajose (2010) argues that small and medium-sized enterprises are the center of economic development and the first point of touch for the business world, but Covid–19 has had a major effect on business operations. Small and medium-sized businesses help drive investment savings and encourage the use of local raw materials in the states. Small and medium-sized enterprises are also critical for poverty reduction, as they tend to employ poor and low-income employees and are often the source of jobs in rural areas and poor regions. In addition, by manufacturing intermediate goods for use in large enterprises, small and medium-sized enterprises are contributing to the strengthening of industrial relations. This explains the growing interest shown by developed countries in supporting small and medium-sized enterprises since the 1970s (Ekpenyong and Nyong, 1992). According to Bonga (2010), many economies have lagged behind in promoting small and medium-sized enterprises and missed the benefits they bring to a nation due to Covid-19.
In what looks like a subtle criticism of the public media and academic writings for focusing mainly on global macroeconomic impact of COVID-19, Ataguba (2020) argues that it “is only one part of the bigger picture of economic impact”. The likely exacerbating impact of the pandemic on the states’ economy is inevitable for several reasons. Firstly, the economy is yet to fully recover from the aftermath of here cession experienced in 2016. Secondly, the economies depend largely on crude oil whose price has plummeted in the international market. Thirdly, the foreign exchange reserves have been drawn down from US$45.1bn at the end of 2019 to US$35.3bnattheendofMarch2020.Fourthly, the country’s debt burden has been mounting since 2015. Fifthly, inflation is still firmly in double digits and thenaira is under pressure. Finally, the health system capacity is abysmal. These and other factors have led to the growing concerns and uncertainties that COVID-19 will bring on the Nigerian economy. According to Ozoli (2020), “the economic downturn in Nigeria was triggered by a combination of declining oil price and spillovers from the COVID-19 outbreak”.
1.2 Statement of the Problem
Before the spread of the virus, Igbo businesses contribute immensely to the economy of Nigeria–through the payment of taxes, market levies and contribution to employment generation and GDP growth. They (Igbo businesses owners) survive by travelling from one part of the country to another to make purchases of products and supply the same to different parts of the country (Nigeria) and beyond. However, as a result of the movement restriction placed by both the Federal and State government, they appear unable to carry out their business dealings smoothly. They were no longer able to travel out to make purchases of goods as a result of the shutdown of international movements, neither were they able to make local and international supplies. These had immense implication for the country as a whole as their contribution to the nation’s GDP was negatively affected, the employment generation contribution of the SMEs owned by this people was reduced and potentially throw the nation into recession. The Covid–19 pandemic created crucial challenges for small and medium-sized enterprises (SMEs) in Anambra State, forcing many to change their attention from daily operations to crisis management and alternative business response efforts. The effect was visible in the areas of sales/services, initiatives to minimize adverse effects, prospects, threats, support measures and company survival prospects (Falokun, 2020). In addition, too many small and medium-sized businesses have finished their programs due to Covid-19 pandemic.
1.3 Objectives of the study
The broad objectives of this study are to investigate the impact of pandemic in economic growth.
The study has the following specific objectives of the study;
1.To examine ways the covid-19pandemic can worsen the unemployment rate in Nigeria
2.To examine how Covid-19s pandemic affected Nigeria's economy
3.To investigate the effects of Covid-19 Outbreak on the foreign exchange performance in Nigeria
1.4 Research Questions
1.In which way has covid-19 worsen the unemployment condition in Nigeria ?
2.How has the Covid-19s pandemic affected Nigeria's economy?
3.What are the Effects of Covid-19 Outbreak On The foreign exchange performance in Nigeria
1.5 Hypothesis
H0: Covid-19 has not worsened the unemployment condition in Nigeria
H0: Covid-19 pandemic has not affected Nigeria's economy
H0: There are no effects of Covid-19 Outbreak On The foreign exchange performance in Nigeria
1.6 Scope of the Study
This study is on the impact of pandemic in economic growth. In carrying out the study, the researcher limited the scope to Covid-19 because it is the only recent pandemic that is currently ravaging the world as at the time of the study.
1.7 Significance of the Study
This study contributes to the recent literature that investigate the impact of pandemic in society (see., Chinazzi et al, 2020; Haleem et al, 2020; Chen et al, 2020; Fornaro and Wolf, 2020). This study contributes to this literature by exploring the factors that contributes to economic hardship during a pandemic
1.8 Limitations of the Study
Financial Constraints: The researcher was with limited funds, she cannot visit all the areas to get responses from respondents but she was able to get good information concerning the research topic.
Time Constraints: The researcher was involved in other departmental activities like seminars, attendance of lectures etc which limited her time for the research but the researcher was able to meet up with the time assigned for the completion of the research work
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