Nigeria's post-COVID-19 Macroeconomic Policies Are They Climate ... - ReliefWeb
Nigeria's post-COVID-19 Macroeconomic Policies Are They Climate Change Friendly? - Nigeria | ReliefWeb
Tikristini Olawale
Executive summary
This policy insight analyses Nigeria’s post-COVID-19 macroeconomic policies to ascertain how helpful they are in achieving the country’s climate commitments, as specified in its Nationally Determined Contribution (NDC). The focus is on the policies in the Economic Recovery and Growth Plan, Economic Sustainability Plan and National Development Plan (2021–2025). This is followed by policy recommendations to help achieve a green economic recovery in Nigeria. While a clean energy future is taking shape with the expansion of the NDC, the Nigerian government needs to create a conducive environment for the effective implementation and monitoring of its climate change policies and initiatives. Educating all stakeholders on climate change adaptation and mitigation measures needs to be prioritised. By actively investing in renewable energy, capacity building, climate-smart agriculture and economic diversification, Nigeria can set itself on a path to build back stronger and cleaner.
Introduction
The COVID-19 pandemic has given rise to arguably the most challenging global health crisis in modern times. Its impact has been felt by most sectors of the global economy, resulting in economic decline around the world. Governments have committed at least $12 trillion towards a recovery stimulus with a focus on immediate needs, including healthcare, job security and food security. However, studies show that the economic response to the COVID-19 crisis has also reinforced negative environmental trends, as few governments have used COVID-19 stimulus packages to transform the economic trajectory of their countries in a way that responds positively to climate change and enhances environmental sustainability. This despite the fact that climate change is one of the biggest threats facing humanity today. With properly designed stimulus packages that are climate friendly, countries can build back in a way that is more sustainable, resilient and inclusive.
Nigeria’s economy was heavily impacted by COVID-19. Global and local lockdowns had a significant effect on health, transportation, finance, education, agriculture, manufacturing and oil sectors. Given the centrality of these sectors to the Nigerian economy, the disruption of business activities caused major revenue and job losses. In response, Nigeria launched its Economic Sustainability Plan (ESP) and National Development Plan 2021–2025 (NDP) to aid economic recovery. This policy insight analyses Nigeria’s macroeconomic policy measures to see how helpful they have been in achieving the country’s climate commitments, as laid out in its Nationally Determined Contribution (NDC). Specifically, its focus is on the policies in the ESP and NDP, which seek to revitalise and support various sectors of the economy that were especially affected by COVID-19. Importantly, it makes policy recommendations to help the government achieve a green economic recovery.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”