The Coronavirus is spreading quickly. There are now over 10,000 + confirmed infections and the death toll exceeded 200+ people last three week ago.
The World Health Organisation (WHO) has now declared the outbreak as an international emergency as the total number of infections have surpassed that of the 2002–2003 SARS outbreak. The development is also having a significant impact on global commodity markets with price increase in Nigeria market escalating in recent weeks.
Market Economic slowdown is inevitable
The outbreak of the coronavirus is already having an impact on the Nigeria’s economy. Millions of Nigeria citizens are in ‘lockdown’ and the business environment are still in doubt without further plans by government to unlock the economy in the entire country. However, multiple cities and provinces have ordered “non-essential” businesses to used noise mask in and out of the business environment in other to control the spread of the covid-19 infection in the country
There are widespread and seriously ban of many business activities in the country, meaning that moving people, goods and commodities is challenging. However, cargo vessels are still allowed to discharge material at ports, but Offshoretrade understands that local vessel transportation from the ports to any operational regions is not restricted even when the heat of virus was much in the country .
Commodity markets feeling the impact
Nigeria is the world’s best imported users of all the largest consumable of many commodities, meaning any slowdown will have a significant impact on global commodity demand and prices. Financial markets are known for their quick response to ‘even’ risks and it is no surprise that most commodity prices had increase to 23% over the past nine in the country. Gas -LPG, oil and oil refined product are leading the charge increase by over 18% of the initial price and other non oil business are struggling day by day to sustains the market has a result of the market