How COVID-19 impacts Nigeria’s investment climate

As the International Monetary Fund raises concerns about Nigeria's economy facing the impact of the dual shock of the coronavirus pandemic and plummeting oil prices, experts are closely examining how these challenges are affecting the country's investment climate. In a recent interview with CNBC Africa, Vincent Nwani, a Business and Investment Consultant, shed light on the priority issues currently facing Nigeria's investment climate. Nwani highlighted the pandemic as the most significant and destructive factor affecting Nigeria's economy, emphasizing its far-reaching impact on various sectors including trade, investment, and lifestyles. The unprecedented nature of the crisis, coupled with the heavy reliance on revenue from sources like crude oil exports, has left Nigeria in a precarious financial position. With oil prices hitting historic lows and revenue streams drying up, the country is facing the looming threat of financial instability and struggles to meet obligations such as paying salaries at the federal and state levels. This economic strain is expected to trickle down to consumers, impacting their ability to engage in commerce across different sectors. Despite some sectors like agriculture and ICT experiencing relative stability, others are grappling with revenue shortages and government focus on combating the COVID-19 crisis. The foreign exchange market is under pressure, with the Nigerian Naira depreciating against major currencies like the US dollar, leading to additional economic challenges.