Coronavirus Pandemic and The Challenges of Oil Producing Economies in Africa: Nigeria And Angola In Comparative Perspective

Abstract

The outbreak of the covid-19 pandemic has forced many economics of the world to diversify their economy, because of the negative impact of the pandemic on global economy. The IMF report shows that the global GDP fall by 3% in 2020, and an estimate of 2% growth was experienced before the outbreak of the covid-19 pandemic. This study seeks to engage in a comparative analysis of the challenges of oil producing economies in Africa with emphasis on the Nigeria and Angola economy. Secondary data were used such as textbooks, journals and other internet sources. This study reason why these economies were negatively affected was that both countries dependent heavily on the export of crude oil as their major source of foreign exchange earnings. This study argues that if both countries had diversified their economy respectively, the impact of the decline in the price of crude oil in the international market would not have affected their economy to the extent that it has affect it. Therefore, this study further argues that poor macroeconomic policies as well as corruption that characterized the mismanagement of the oil revenue has contributed in a no small measure in affecting the economies of both countries. It is against this backdrop this study makes the following recommendations as measures that will help address the challenges facing both Nigeria and Angola especially in the area of diversification of the economy and curbing corruption.