The Effect of Trade on Economic Growth in Nigeria: Does Covid-19 Matters?

Abstract

The occurrence of Covid-19 instigated direct and indirect effect on African economy especially Nigeria which was greatly hit. The movement of goods was severely affected as Intra-African trade was disrupted through the shutdown of ports, airlines, borders and businesses. The pandemic led to the lockdown of economic and social activities across the globe and impacted drastic economic downturn and disruption in global trade. Major economic activities were withheld and production of essential commodities was put on hold. In respect to these, this paper carried out a desk review of the effect of trade on economic growth in the era of COVID-19. Conventionally, trade accelerates economic growth but with global disruption brought about by the pandemic, it was envisaged that trade might not be able to stimulate economic growth for the active period of the endemic as many countries implemented locked-down policies. However, with the occurrence of the pandemic, most countries have realised the need to accelerate digital trade facilitation. Also, the need to have long-term trade-related technological investment and structural changes to possibly accommodate less contact during trade processes and facilitation. In conclusion, the outburst of the pandemic has further enlightened African nations on the need for the proposed African Continental Free Trade Area (AfCFTA) which was launched on 1st of January, 2021.