According to the World Health Organisation, Coronaviruses are a large family of viruses which cause illness in animals or humans.

In humans, several Coronaviruses are known to cause respiratory infections ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS). The most recently discovered Coronavirus causes Coronavirus disease, COVID-19. COVID-19 is the infectious disease caused by the most recently discovered Coronavirus which broke out in Wuhan, China, in December 2019. The COVID-19 Pandemic has occasioned serious health hazards across the globe, with dire human consequences. Data obtained from the World Health Organisation showed that on May 24, 2020, there had been 5, 103, 006 confirmed cases and 333, 401 deaths resulting from the disease. The global economy has been devastated as a result of restriction of international trade and the closure of borders by various countries. Huge losses have been recorded by businesses and countries engaged in international trade. The outbreak of the Pandemic has had adverse effects on all sectors and spheres of the global economy, including the shipping industry estimated to be losing $350 million weekly in lost revenue as a result of the outbreak. The International Chamber of Shipping estimates that over 350,000 boxes have been removed from global trade as a result of the Pandemic. Nigeria’s foremost indigenous public transport and infrastructure development company, Planet Project Limited in a news report on May 10, 2020 revealed that public transport sector in the country might have lost N3 trillion to a five-week lockdown imposed on some states due to the outbreak of COVID-19.

The Pandemic has spread to not less than 181 countries of the world causing loss of life, collapse of healthcare systems, the crumbling of the economy and strain on the legal systems. It has had devastating impacts on the economic sectors of various countries especially those of developing countries such as Nigeria and other African countries and has also affected the development, effectiveness and functionality of the laws of various countries. The impacts of the Pandemic will be discussed with specific reference to the legal system and economy of Nigeria.

THE IMPACT OF COVID-19 PANDEMIC ON NIGERIA’S ECONOMY

Nigeria’s fragile economy has been hit hard by the spread and effects of the Coronavirus Pandemic in the country. The impact of the virus on the economy has been, to say the least, devastating. The effects of the virus on the economy cut across oil and gas, transport, manufacturing, exports, tourism and other sectors of the economy. The transport sector which is the second most vital sector of the Nigerian economy has been hit hard by the pandemic

The Coronavirus Pandemic has had adverse effects on the manufacturing sector of Nigeria’s economy. Due to the outbreak of the virus in the country, manufacturers in the country have been faced with difficulties in accessing raw materials and intermediate inputs. In a report published on Tribune Newspaper’s website on March 23, 2020, Dr. Muda Yusuf, the Director General of Lagos Chamber of Commerce and Industry had noted that “many manufacturers and service providers in the country are already experiencing acute shortage of raw materials and intermediate inputs”. He added that the situation has implications for capacity utilisation, employment generation and retention and adequacy of products’ supply to the domestic market. The impact of the virus on the manufacturing sector has ripple effects on the economy as the sector plays critical roles in sustaining the economy.

Moreover, the Pandemic has affected the economy adversely by causing a decline in investments. The uncertainties occasioned by the outbreak of the virus in the country has led to a massive decline in stock prices at the Nigerian Stock Exchange and the loss of Foreign Direct Investment. The Pandemic has forced investors to hold-off long term investments. The crisis caused by the decline in stock prices has resulted in the poor performance of the Nigerian Stock Exchange, its worst performance since the 2008 financial crisis, which has denied the economy the needed stimulation and sustainability.

Furthermore, the Pandemic has reduced the purchasing power of individuals and demand for nonessential goods. The restrictions of movement imposed in various states have impacted on the economy negatively by reducing the consumption of nonessential goods resulting in loss of revenue to businesses engaged in the production of such goods, and also reducing the income-generating capacity of individuals. The imbalance between demand and supply has created instability in the economy.

Additionally, small businesses, which are critical to the functioning and sustenance of the Nigerian economy, have been adversely affected by the outbreak of the Coronavirus Pandemic in the country. Many small businesses in the country rely heavily on foreign imports for their operations but have in recent times been affected by shortage of supply as a result of the closure of the country’s borders in a bid to curtail the spread of the virus. This has led to the closure of several businesses, loss of revenue and employment. According to a report published on the Guardian Newspaper’s website on March 21, 2020, over $100 million worth of hardware goods belonging to some Nigerian phone and computer vendors are stuck in China as a result of the outbreak of the Pandemic. This situation has the potential to cause hike in prices of goods leading to inflation, which will only spell doom for the already fragile economy.

Also, the spread of the Coronavirus in the country has affected the tourism and hospitality sectors. As a result of the Pandemic and the consequent restriction of movement and closure of boders, travel companies, hotels and hospitality industry are facing declining demand and patronage. This has slowed down the growth of the economy as it affects the flow of liquidity or cash flow and foreign exchange needed to keep the economy afloat.

The outbreak of the virus across several countries of the world has stunted international trade. Most countries have closed their borders to nonessential goods. This has affected Nigeria’s economy as it deprives it of the cash flow and foreign exchange which are essential to the effective functioning of the economy. The Pandemic has led to the disruption of the global supply chain, a situation which has resulted in Nigeria’s exports being restricted from being delivered to other countries.

The outbreak and spread of the Coronavirus across the countries of the world has led to the reduction of the price of crude oil. Crude oil had sold at a record low price of $26 per barrel as at April 2, 2020. The downturn in the price of crude oil has had a devastating impacts on Nigeria’s economy as a result of its depence on oil which constitutes about ninety percent of Nigeria’s exports. The Federal government which had put the benchmark at $57 per barrel had been forced to review its budget due to the loss of revenue. The loss of revenue arising from the cut in oil prices has led to a huge loss of government revenue and the inability to implement its economic policies geared toward sustaining economic recovery and development. This unfortunate situation has affected the country’s economy unfavourably, including the quality of life and standard of living of individuals.

THE IMPACT OF THE COVID-19 Pandemic ON NIGERIA’S LEGAL SYSTEM

The impact of the Coronavirus (COVID-19) Pandemic has not only reflected on Nigeria’s economy but also on its laws and legal system. The outbreak and spread of the virus in the country has had effects on the laws of the country, its interpretation and enforcement.

The COVID-19 Pandemic has had a huge impact on the existence and development of the law in Nigeria. The legislature is saddled with the responsibility of making laws while the the judiciary (the courts) has the power to interpret the law. Consequent upon the outbreak of the Pandemic in the country, the two institutions vital to the development of the law have been limited in the performance of its duties. The legislature had in order to help curtail the spread of the virus put a hold on its activities. On the other hand, the Chief Justice of Nigeria, Honourable Justice Tanko Muhammed, had as the head of the judiciary in Nigeria, ordered the suspension of court proceedings as part of measures to curtail the spread of the virus. While the actions taken are reasonable and necessary as a result of prevailing circumstances, they have affected the development of the country’s body of law. Also, due to the outbreak of the virus in the country, several programmes with the potential to contribute to the development of Nigeria’s laws were either postponed or cancelled.

Significantly, the COVID-19 Pandemic has contributed to the growth of the body of law in Nigeria. In order to prevent or curtail the spread of the virus and its effects, the government at all levels have enacted various laws and regulations. This has increased the body of Nigerian laws and making them reflect current realities. The laws, rules and regulations enacted as part of measures to curtail the continued spread of the pandemic in the country have enlarged Nigeria’s body of laws (corpus juris) and would no doubt, aid in strengthening the legal system and enhancing its effectiveness in tackling emerging realities.

Furthermore, the outbreak and spread of the Coronavirus in Nigeria has resulted in the limitations of certain provisions of Nigerian laws. In a bid to curtail the spread of the virus in the country, the government has put restrictions on some provisions of Nigerian laws. For instance, the Federal Government and several state governments have limited religious gatherings, peaceful assembly and association, and movement of persons which are clear limitations on the operation of Sections 38, 40 and 41 of the 1999 Constitution of the Federal Republic of Nigeria (as amended). These restrictions are justified on the ground of public interest and safety in line with the provision of Section 45 of the Constitution of the Federal Republic of Nigeria 1999 (as amended). Additionally, laws regulating contracts especially as it pertains to time of performance has been put on hold temporarily as the outbreak of the virus could be categorised as frustrating event.

The COVID-19 Pandemic has greatly impacted on the operation, effectiveness and development of the law in Nigeria. It has necessitated the enactment of new laws and the modifications of existing laws to match the novel realities occasioned by the Pandemic and relevant in addressing challenges facing the Nigerian society.

The outbreak and spread of the Coronavirus disease in Nigeria and the consequent uncertainties have dealt devastating blows to the country’s fragile economy. The Pandemic has caused a crisis in the economy leading to disruption of supply chain, production, supply and consumption of goods, reduction of purchasing power of individuals, crippling of the tourism and hospitality sectors, loss of investments, decreased government revenue and insolvency of several businesses in the country. Though the government has taken several steps to cushion the effects of the Pandemic on the economy, it is advised that the government implement more proactive measures to hedge the effects of the Pandemic on the Nigerian economy. The government should increase consumer spending through fiscal stimulus measures, grant tax waivers and tax holidays to businesses adversely affected by the Pandemic, reduce interest rate and cost of borrowing to enable businesses access credit facilities, and ultimately, diversity the economy to enable it withstand the effects of crisis like the novel Coronavirus pandemic.

Conclusively, it is submitted that while the COVID-19 Pandemic may have certain adverse effects on the effective operation and development of the law in Nigeria, its impact will nevertheless contribute significantly to the growth of the law and its dynamism. Through its interpretation of the law on the ‘force majeure’ clauses in contracts in relation to the COVID-19 Pandemic, its interpretation of the laws made to tackle the Pandemic, decisions on affected employment relationships, insurance coverage of Pandemic-related damages and the constitutionality or otherwise of administrative actions taken by government toward curtailing the disease, new precedents will be set and new principles of law establisehed thereby developing Nigeria’s corpus juris (body of laws), and enhancing its effectiveness and adaptability .

Usulor Chukwuebuka is a writer, voracious researcher and a member of Young International Council for Commercial Arbitration.