Lockdown May Be Injurious To African Economies, Says World Bank

By Uche Mbah
World Bank has warned of an impending economic catastrophe if African countries continue with their “Copy and Paste” knee-jerk reactions to the coronavirus Pandemic, particularly in the issue of lockdown.
Nigeria has locked down both its economic and administrative capital in the wake of the pandemic while keeping the Northern cities operating business as usual. Palliatives were concentrated in the cities where there is no lockdown.
But World Bank, in a recent release, fears that it will increase the poverty index due to collapse in the supply chain due to economic activities at standstill.
“A prolonged lockdown will put at risk the subsistence of their households,” the report said. “The majority of workers hired are in a precarious situation, and most of these jobs are temporary and with low remuneration, do not offer social security, and put workers at a greater risk of injury and ill health.”
90% of the economy is driven by the private and informal sectors
Since the federal government ordered lockdown March 30, there have been restiveness in the three states involved-Lagos, Ogun and Abuja. many are defying the lockdown and challenging security agencies which some times use high handedness against them. there have been reports of death in the hands of overzealous security agencies. Daylight armed robberies are also on the increase.
World Bank has therefore advised policy makers in the region on the need to “design effective strategies that include (short-term) relief measures and (medium-term) recovery/stimulus measures.” But it appears that the whole arms of the presidency are singing discordant tunes since the de-facto President Abba kyari, who is Chief of staff to President Buhari, came down with covid 19 and is being quarantined in an unknown location.
“African policymakers need to think ahead about the exit strategy from COVID-19. Once the containment and mitigating measures are lifted, economic policies should be geared toward building future resilience,” the Brenton Woods Institute stressed.