Economic Impact of COVID-19 Lockdown on Households in Nigeria

Fatoye, Francis ORCID: https://orcid.org/0000-0002-3502-3953, Gebrye, Tadesse ORCID: https://orcid.org/0000-0001-7976-2013, Arije, Olujide, Fatoye, Clara, Onigbinde, Omotola and Mbada, Chidozie ORCID: https://orcid.org/0000-0003-3666-7432 (2021) Economic Impact of COVID-19 Lockdown on Households in Nigeria. In: Virtual ISPOR 2021: HEOR: Evolving for Tomorrow's Challenges, 17 May 2021 - 20 May 2021, Online.

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Abstract

Objectives The World Bank has projected that the low-and-middle income countries (LMICs) would face economic crisis induced by the COVID-19 pandemic and lockdown. However, the economic implications of lockdown policy on households in LMICs is largely speculated. This study evaluated the economic impact of the COVID-19 lockdown on individuals and households in Nigeria. Methods A cross-sectional online survey was used to collect data. Nigerian citizens who were domiciled or restricted from travelling abroad for no less than one month since the COVID-19 restrictions and lockdown were recruited into the study through focal persons purposively selected across the different states in Nigeria. The respondents completed the survey on household income and expenditure before and during the lockdown. Economic burden of COVID-19 lockdown on individuals and families was estimated using a prevalence-based cost of illness approach. Results Four hundred and four (Male = 242; Female = 162) individuals have participated in the study. The mean (SD) age of the respondents was 30.98 (10.92) years. There was difference in mean (SD) monthly income before and during the lockdown (₦263389.27 (USD690.4) (SD ₦2589649.2)) vs. (₦207704.9 (USD544.4) (SD ₦1846806.84)). The overall household expenditure before and during the lockdown periods were USD 320 and USD 290. The total mean monthly costs for COVID-19 and non-COVID-19 health related problems were ₦11746.25 (USD 30.79) and ₦11784.9 (USD 30.89). Household expenditure for hand sanitizers, facemasks, hand gloves, and disinfectants increased significantly during the COVID-19 restriction lockdown (p < 0.05). However, expenditure on education, water, electricity, fuel for generating set, internet data, clothing and wears, toiletries decreased significantly during the lockdown period (p < 0.05). Conclusions This study suggest that the costs of continuing COVID-19 restrictions could have huge economic consequences on households and health system. Thus, easing COVID-19 lockdown that reduces its economic impact through targeted measures such as social distancing are necessary.