A Review Of Covid-19 Effect On Balance Of Payment In Nigeria: An Overview Of Pre And Post Era

Ifeoma C. Nwakoby

Department of Banking & Finance, University of Nigeria, Enugu Campus

Charles O. Manasseh

Department of Banking & Finance, University of Nigeria, Enugu Campus

Felicia C. Abada

Social Sciences Unit, School of General Studies, University of Nigeria Nsukka

Osmond N. Okonkwo

Department of Economics, Alvan Ikoku Federal College of Education, Owerri

Okechukwu J. Akamike

Department of Economics, Imo State University, Owerri

Keywords: COVID-19 EFFECT, BALANCE OF PAYMENT, 3. Covid-19 Pandemic and International Trade in Nigeria


Abstract

This study presents the review of the effect of Covid-19 on balance of payment in Nigeria with particular attention to in pre and post era. Balance of payment in this study captures the behaviour of current and the capital account during covid-19 and post era. The current account in this study reflects a country's net income, while the capital account reflects the net change in ownership of national assets. Other indicators such as international competitiveness, export, import, foreign remittances, foreign direct investment, foreign exchange rate, interest rate, terms of trade, balance of trade, export trade, and import trade. The values of these indicators were assessed during the pre and post Covid-19 era. The study shows that Covid-19 affected balance of payment negatively, as well as international trade. Furthermore, the study revealed that current account diminishes, and the rank of Nigerian international competitiveness was low, whereas foreign remittances fell drastically. Thus, import was on the high side, while export was very low. Hence, fro m the findings, we suggest for the initiation of policy that will promotes economic diversification and as well, improve health system in Nigeria. This in turn will promote growth, trade and balance of payment