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The COVID-19 crisis continues to disrupt Nigeria’s labor market. Notably, it: (i) began to harmonize exchange rates (ii) initiated reforms to eliminate gasoline subsidies (iii) adjusted electricity tariffs to more cost-reflective levels (iv) cut non-essential spending and (v) enhanced debt management and increased transparency in the public sector, especially for oil and gas operations. The number of Nigerians living below the international poverty line is expected to rise by 12 million in 2019–23.Īs part of its COVID-19 response, the government carried out long-delayed policy reforms in 2020. In 2018, 40% of Nigerians (83 million people) lived below the poverty line, while another 25% (53 million) were vulnerable. Oil accounts for over 80 percent of exports, a third of banking sector credit, and half of government revenues.
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Nigeria was highly vulnerable to the global economic disruption caused by COVID-19, particularly due to the decline in oil prices. In 2020, Nigeria experienced its deepest recession in two decades, but growth resumed in 2021 as pandemic restrictions were eased, oil prices recovered, and the authorities implemented policies to counter the economic shock. Since 2011, the security landscape has been shaped by the war against Boko Haram terrorist group in the northern states in addition to cases of banditry and kidnappings in the north-west and continued unrest in the southeast resulting from separatist agitations. General elections are scheduled in February 2023. Muhammadu Buhari secured a second term at the 2019 presidential elections. The political landscape is partly dominated by the ruling All Progressives Congress party (APC) which controls the executive arm of government and holds majority seats at both the Senate and House of Representatives in parliament, and 23 out of 36 State Governors.
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Nigeria is a multi-ethnic and culturally diverse federation of 36 autonomous states and the Federal Capital Territory.
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