Lessons for Macroeconomic Policy from Nigeria and the COVID-19 Pandemic

The COVID-19 pandemic has had severe impacts on Nigeria’s macroeconomy and the livelihoods of households. The economy suffered from a recession in the third quarter of 2020, however, key sectors including telecommunications and information services (15.9%), financial institutions (13.34%), and quarrying and other minerals (21.16%) continued to experience significant growth, which led to a recovery. The Nigerian government has responded notably to address the pandemic’s impact on the economy. So far, $ 1.4 billion in additional spending has been executed, which is estimated at 0.3% of GDP. This paper examines the macroeconomic landscape and policy interventions in Nigeria with the objective of developing lessons not only for Nigeria but for other developing economies.