• Wednesday, April 24, 2024
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BusinessDay

Here are the most vulnerable Nigerian state economies amid Covid-19 pandemic

The total lockdown of commercial activities in some states in Nigeria to combat the spread of Covid-19 may affect the survival of people in those states as most of its adult population earn their income daily or weekly.

According to Enhancing Financial Innovation & Access (EFInA), a financial sector development organization that promotes financial inclusion in Nigeria, Covid-19 poses a threat to the livehood of about 50 percent of the 99.6 million Nigerian adult population who earn their income on a daily or weekly basis.

In Nigeria, unregistered household enterprises comprise a significant portion of its economy, accounting for as high as 65 percent of GDP, according to a research paper by International Monetary Fund (IMF).

From the National Bureau of Statistic (NBS), Nigeria’s unemployment rate rose to 23.1 percent by the end of September 2018, up from 18.1 percent in 2017. The high unemployment rate has resultant to adults starting small businesses largely driven by the agric sector to survive. And most of people depend on these businesses for their day to day expenses.

Read also: On borders, boundaries and the lockdown

A breakdown from EFInA shows that 32.o percent of its adult population earn its income daily, for weekly 17.5 percent, 18.5 percent earn their income monthly, 5.5 percent earn theirs annually, 18.5 income occasionally or upon completion of job, and 8.0 percent earn no income

Here are the Nigerian states that may be mostly affected if a total lockdown takes place.

Rivers state

Rivers state is top on the list, as 73 percent of its adult population earn their income daily or weekly. Its capital and largest city, Port Harcourt, is economically significant as the centre of Nigeria’s oil industry. According to NBS, the state recorded the second highest employment rate of 36.4 percent in the third quarter (q) of 2018

Bayelsa state

Bayelsa state also an oil rich state like Rivers, has 72 percent of its adult population earning their incomes on a daily or weekly. But despite its oil-rich state, it is believed that the majority of people live in poverty. With 32.6 percent, it is the third state with the highest unemployment rate.

Imo state

Imo state located in the south-east region has 71 percent of its adult population earning their incomes on a daily or weekly basis. The economy of the state depends primarily on agriculture and commerce. One of the primary agricultural production is the production of palm oil

Anambra state

The southeastern state, rich in natural gas, crude oil, bauxite, and ceramic has 70 percent of adults earning on a daily or weekly basis. Anambra state has many other resources in terms of agro-based activities such as fisheries and farming, as well as land cultivated for pasturing and animal husbandry.

Sokoto state

This state has over 80 percent of people living in the state practising agriculture. Located in the extreme northwest of Nigeria, 69percent of its adult population earn their living on a daily or weekly basis.

Abia state

Abia, an eastern state is the fifth most industrialized state in the country, and has the fourth-highest index of human development in the country, with numerous economic activities and fast-growing populations as recorded by the United nations early 2018. It has the fourth-highest unemployment rate of 31.6 percent. 67 percent of its adult population earn daily or weekly.

Delta state

Delta, an oil and agricultural producing state in Nigeria, located in the South-South geo-political zone has 65 percent of its adult people earning daily or weekly.

Akwa Ibom state

This state is currently the highest oil- and gas-producing state in the country. It has the highest unemployment rate of 37.7 percent. 64 percent of its adult population earn their living either daily or weekly.

Lagos, the top commercial city in Nigeria was placed on the is 11th position with 60 percent of its adult population earning income daily or weekly while Oyo state and Ogun state both have 63 percent of adults living from hands-to-mouth.

The least vulnerable states, located in the northern region are Adamawa, Benue, Niger, Plateau, Nasarawa with 24 percent, 29 percent, 34 percent, 36 percent and 36 percent.