recoveries, the country has to a large extent tried to put systems in place to contain its spread - at least for now. If you can take heed of all the instructions from NCDC and maintain proper hygiene, we will all be fine. Global economy has been one of the most hit with disruption in g l o b a l s u p p l y a n d e c o n o m i c a c t i v i t i e s , g l o b a l manufacturing giants like Apple, Hyundai, Peugeot, Procter and Gamble, Sony, ZTE, Erickson have had to cut down their revenue forecast since production had been halted at the start of the year."
has taken a major hit, losing more than $40 billion already. The Diamond Princess cruise ship, which docked with about 700 cases of the coronavirus reported may serve as a deterrent against cruises, even after the outbreak has been contained.
To Cruise or Not?
Cancel Culture
With this virus, everything has been cancelled.
According to Bloomberg, the economic impact of this pandemic could see recessions in the U.S, EU and Japan and the slow growth rate could cost China well over $2.7 trillion in lost output — equivalent to the entire GDP of the U.K. We can't give you the Naira equivalent—the money is much. In an attempt to stall the pandemic, many countries have adopted a cautionary measure to trade aka 'please stay at home'. The US closed its borders to the EU, UK and Ireland, Russia to China and global trade seems to be threatened. The aviation industry contributes about $2.7 trillion (3.6%) to the global gross domestic product (GDP) and with Covid19, airlines have lost more than $113 billion due to travel bans and scant plane bookings even with cheaper flight fares (who wants to travel?). If you see the picture making the rounds on the internet of the Kabba in Mecca, you'll know that this thing is real.
Russia Roulette
As if the coronavirus wasn't enough, tensions increased among oil producers who have tried to stabilize the prices for the reduced global demand in the market. However, the inability of the leading OPEC representative, Saudi Arabia and Russia to reach an agreement on production th quotas triggered a 27% drop in the price of crude on 8 of March 2020, its lowest in more than five years. Market prices are now at $19.84 per barrel, and it is not a good sign for any of the parties involved. Outside of the Middle East where the cost of production is lowest, with prices as low as $25 per barrel, the cost of production could force other producers including Nigeria and the US out of the market. For instance, Nigeria will be unable to sell its oil since our cost of production is $38. Since oil accounts for more than 70% of our revenue and foreign exchange, dollar rates have gone up and panic in the market has set in.
Uncle Godwin of the CBN has however assured us that the increased rate is under control and will not last long but this development is an issue for revenue especially as we budgeted $57 per barrel for oil.
Now the Federal Council has cut our budget by 30% i.e money no dey again but ogoro must still chop since oil money is our business and now $1 equals 380, we will be fine laslas..
Mamba Mentality
COUNTRIES WITH CONFIRMED COVID-19 CASES
Football is also cancelled! It is the worst news you could give a football fan. All the top leagues have been postponed causing an estimated loss of $200 billion and if you are a Liverpool fan, this season could be your greatest nightmare. The tourism industry has already lost more than $2 trillion since the outbreak with countries like Cape Verde, Tanzania and Greece(Santorini people) expected to reduce their revenue projections. In 2017, boat cruises contributed more than $117 billion to the global economy. Today, the sector
The thing that can save us now, is for Nigeria to start a side hustle because oil has dried up… for now. But you guys know say Naija no dey carry last. Since we have land, we can do Agriculture and agro processes, we can put policies in for trade since we have market and we can improve our tax collection model because we need money.
But don't worry whatever happens, We full ground, no shaking. My people just know that where there's a casting down, there will be a lifting up for us.
Stay safe guys!
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