A pandemic and a need for good governance
As the novel coronavirus continues to ravage the world and take a toll on global economies, governments are scrambling to put in measures not only to combat the disease, but also to combat the economic fallout that has come along with it. In March alone, millions of Americans applied for unemployment benefits, erasing nearly all […]
As the novel coronavirus continues to ravage the world and take a toll on global economies, governments are scrambling to put in measures not only to combat the disease, but also to combat the economic fallout that has come along with it. In March alone, millions of Americans applied for unemployment benefits, erasing nearly all jobs created in the past five years. While these job losses cut mainly across the service industry (restaurants, travel, hotel etc.), emerging reports are also showing rising layoffs in manufacturing and transportation sectors. According to data from the labor department, more than 10million Americans applied for aid and many economists agree that the real number is probably higher as a lot of newly unemployed are yet to fill out a claim yet.
Economies across Europe are also struggling to keep their heads above water. Italy, which is the third largest economy in Europe, has been the worst hit by the Covid-19 crisis. The country’s situation has been made worse economically by the fact that it has the highest level of public debt among the euro-zone countries and robust economies that usually provide bailout guarantees and financial aid are also grappling. One of such economies is Germany, which itself anticipates a contraction of her economy.
While the response of the federal government and the NCDC in the containment and prevention of Covid-19 has been very impressive, even attracting words of commendation from the UN despite the dismal state of healthcare system in the country, there is still an air of uncertainty regarding the number of cases so far recorded in the country. Many believe that the reason for the low numbers (compared to other countries) is as a result of our inadequacy to perform testing on a wide scale. And although the NCDC is currently remarkably well towards adding to the number of testing centers in different states across the six geo-political zones, the current figures of the daily testing capacity are still unknown and this only adds to the uncertainty. But even with that, there is a sense of commitment, dedication, responsiveness and urgency on the part of the central government, which cannot be missed. Moreover, Nigeria already holds an enviable record in dealing with such situations as was evident with how the nation handled the Ebola crisis a couple of years ago, the success of which, is not only hinged on efforts of government but also highlights the world-class capacity of our medical and health professionals.
However, being a member of OPEC and an oil dependent country has further expanded the challenges we face as global oil prices have plunged as a result of a quarrel between Russia and Saudi Arabia. 98% of our foreign exchange is sourced from crude oil receipts and makes up a huge part of government revenue. In summary, the world is headed into another recession spearheaded by the coronavirus pandemic and dwindling oil prices. And in order to prepare for it, the government has had to in a matter of weeks, embark on a downward review of the budget benchmark and revenue projections. It has also provided incentives for businesses in an attempt to avoid job cuts and losses and ensure that the economy keeps moving. Clearly, the FG is proving to have learnt a few lessons from the last recession and seems better prepared to face it this time around.
Now, where most of the concern lies is at the state-level. A cursory look would show that aside from Kaduna State, which inaugurated an Economic Crises Response Committee with a mandate to fashion out measures to cushion the impact of the recession no other state has embarked on a strategy for it. As usual, the FG is waited upon to hook up the “pacifiers” for them to suckle.
During the last recession, the state government had to bailout out over 25 states that were unable to pay workers’ salaries. One would think that these state governments, coming from such a difficult experience would have put measures and systems in place to mitigate future occurrences. Fortunately, the arrival of this pandemic has not only brought to light the inefficiencies of most state governments in providing basic quality healthcare facilities, but the pending economic downturn has also exposed them as a lot who never learn from the past.
There is no better time for the citizenry to rethink their demands from their governments. There are so many questions that need to be asked of our leaders after we weather this storm. Nigeria is a country that has always been kept together by the Grace of God despite our numerous challenges. But we cannot continue to build our nation on that alone. We must be deliberate, we must practical and leaders must be accountable. Most importantly, provision of good governance, adequate healthcare facilities and a fully diversified economy are non-negotiable at all levels.
Aliyu Hassan Aminu writes from Abuja
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