THE WAVE OF COVID-19 PANDEMIC AND NIGERIA’S OVERDEPENDENCE ON OIL: THE CHALLENGES AND POSSIBLE SOLUTION

Abstract

Since the discovery of oil in commercial quantities during the 1950s, and the oil boom in the 70s, oil has been the mainstay of the Nigerian economy. It accounts for about 90% of exports and over 80% of total government revenues. There is no doubt that the present global disruption due to covid-19 pandemic has posed a threat to the economy. This study examined Nigeria’s overdependence on oil revenue. The objective is to explore the challenges of covid-19 on Nigeria’s overdependence on oil revenue and proffer possible solutions. The study undertook an exploratory research using secondary data and relevant literature. The paper suggested some possible solutions that, the short-term focus for Nigeria will be on freeing up fiscal space in transparent and accountable ways, avoiding a downward debt spiral, and ensuring that the recovery is based on a cleaner, more diversified in agriculture, solid minerals and renewable energy for sustainable future growth and development.