Monday, 25 August 2014

Ebola Outbreak Impinges On Nigeria’s Economy, May Lose N542bn In 6 Months

There are indications that the Ebola virus disease is affecting several sectors of the Nigerian economy, as the nation risks losing over $3.5 billion (N542.5 billion) to the epidemic by December, if nothing is done to contain the spread.

Chief Executive Officer, Financial Derivatives Company Limited, Mr Bismarck Rewane, who stated this in the firm’s latest report, said the fear of the disease had affected economic
activities significantly.

This was even as experts in the maritime sector raised concern that containers volume had dropped slowly, as ships reduced to 16 this month from 26 in July, indicating 38.4 per cent drop.

The report said the sectors that would be impacted the most in Nigeria are aviation, hospitality and tourism, trade, medical and agriculture.
The report, which analysed the contributions of the sectors to the Gross Domestic Product (GDP), noted that Nigeria might lose about $2 billion in the first quarter of the outbreak and about $3.5 billion in the second quarter, although the chance of the outbreak going into a second quarter is very slim.
The August 2014 edition of Financial Derivatives Company’s report on the Nigerian economy illustrated the immediate and potential aggregate economic impact of the outbreak of
the Ebola disease in Nigeria.

In the same vein, global rating agency, Moody, also announced that the outbreak of Ebola in Nigeria could lead to disruptions in some sectors of the economy, with negative financial
consequences.

The 2014 Ebola outbreak is adjudged the worst to date, affecting Guinea, Sierra Leone, Liberia and Nigeria.
On August 8, World Health Organisation (WHO) declared the latest Ebola epidemic to be an “international public health emergency,” which has the effect of mobilising global resources to combat it.

Source:
Tribune