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KPMG Nigeria outlines the impacts of a Twin Shock on Nigeria

Nigeria is feeling the heat and that is because its sole dependence on oil has made it suffer a Twin Shock.



President Buhari, KPMG outlines the impact of a Twin Shock on Nigeria, COVID-19: FG decides as the lockdown extension drama unfolds

Like many other country in the world, Nigeria is currently navigating through  uncertain economic times. Lots of Nigerians were not surprised when the Finance Minister, Zainab Ahmed disclosed that the country had requested $3.4 billion from the International Monetary Fund, $2.5 billion from the World Bank, and $1 billion from African Development Bank.

Nigeria is currently feeling the heat. This is because the country’s  sole dependence on oil has made it susceptible to a Twin Shock. The shocks, as disclosed by analysts at KPMG, are the COVID-19 pandemic and Oil Price Shock.


The multinational professional services firm explained that Nigeria’s vulnerabilities to the impact of these external shocks can be adduced to increased dependencies on global economies for fiscal revenues, foreign exchange inflows, fiscal deficit funding, and capital flows required to sustain the nation’s economic activities.

Effects of crisis on supply, demand and financial

Supply: In 2019, KPMG noted that Nigeria’s imports from China were N4.3trillion (25% of total imports), while imported manufactured goods took up about 70 per cent of total imports.

[READ MORE: KPMG calls for review of tax, other measures in line with COVID-19 reality)

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No doubt, the import figures are expected to go southward by the end of 2020, as China and the rest of the world have shut their factories, imposing travel bans and in most cases total lockdowns.

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This development, according to the analysts, would put more pressure on inflation numbers (12.2 per cent year on year as at February 2020).

Demand: The combination of the impact of COVID-19 and the lockdown policy responses implemented to curb the spread of the disease across the globe and locally has affected the global demand.

The depressed demand has filtered to the demand for Nigeria’s major export – oil, even before President Muhammadu Buhari pronounced a lockdown order on Lagos, Ogun states and Federal Capital Territory.


For instance, the top 5 major oil export destinations for Nigeria (India, Spain, Netherlands, South Africa, France and Italy) are all battling the pandemic and are under lock and keys.


The disruption caused by oil market wars, which was instigated by Saudi Arabia and Russia, also complicated issues for Nigeria, as it upset the demand and supply dynamics in the global oil markets.

Oil prices have fallen to a level below $30 per barrel, as inventories are accumulated and demand becomes increasingly dampened.

Coming home, the demand is expected to crash further due to the increasing cases of COVID-19 across various states, which has led to the restriction of movement and closure of businesses in major cities.

What this means: This may worsen as companies adjust to the new economic realities by laying off workers, further worsening the unemployment rate, which was reported at 23.3% according to the latest available data.

[READ ALSO: KPMG reveals 7 Fault Lines that may distort Nigeria’s economy in a new decade)


Financial channel

The impact of the twin shocks is also expected to disrupt global capital flows to emerging markets, including Nigeria. “Considering the role Foreign Portfolio Investment (FPI) plays as a major source of investment in our capital markets and fixed income markets, and more importantly, as a critical source of foreign exchange inflow to the economy,” as stated by analysts.

How it affects us: The depleting global capital flows is expected to put significant pressure on Nigeria’s foreign exchange reserves and exchange rates.

“Beyond the dynamics of foreign portfolio inflows, these Twin Shocks could potentially impact the banking sector’s access to trade lines from international banks, which will in turn impact external trade activities in the domestic economy,” the analysts said.

You may follow KPMG Nigeria’s analysis of the COVID-19 pandemicanalysis of the COVID-19 pandemic by clicking here.

Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper. The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference. The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email -

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Business News

Nigerians will now pay N50 stamp duty on electronic receipts – FIRS

“Any electronic receipt for, or electronic transfer of, money deposited with any bank or with any banker in any type of account of an amount from N10,000 upwards shall attract a singular or one-off duty of the sum of N50.” –FIRS



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Nigerians will now pay stamp duties on all forms of electronic notifications acknowledging receipts of funds.

This includes SMS and messages on any electronic platform such as emails and Whatsapp messages.


This is according to a circular that was signed by FIRS’ Executive Chairman, Muhammad Nami, as seen on the tax agency’s website. Part of the circular said:

“Any electronic receipt for, or electronic transfer of, money deposited with any bank or with any banker in any type of account of an amount from N10,000 upwards shall attract a singular or one-off duty of the sum of N50.

“Stamp duty upon receipt (written, printed or in electronic form) for transactions between corporate bodies or between a corporate body and an individual, group or body of individuals, which amounts to N10,000 and above, shall be denoted by payment of N50 per receipt to the service.”

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The FIRS circular also stated that stamp duties will be paid on “POS receipts, fiscalised device receipts, Automated Teller Machine (ATM) print-outs.”

(READ MORE:Nigerians react as FIRS Chairman asks companies to pay tax before due date)

The circular went further to categorically state that all receipts, either printed or electronically generated, or any form of electronic acknowledgement of money transactions, will attract the stamp duty of N50.

The agency also clarified that it is the only body authorised to collect such duties because “the Federal Inland Revenue Service is the only competent authority to impose, charge, and collect duties upon instruments specified in the schedule to this act if such instrument relates to matters executed between a company and an individual, group or body of individuals.”

The instruments subject to charge, as listed in the circular, include; fixed duty instruments such as Power of Attorney, Certificate of Attorney, Proxy forms, Appointment of receivers, Memorandum of Understanding, Joint Venture Agreements, Guarantors form, Ordinary agreements and Receipts; and Ad-valorem instruments such as Tenancy or lease agreements, legal mortgage or debentures, Sales agreements and Deed of assignments.


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Business News

Ministry of Health approves COVID-19 protocols for aviation sector, as airports prepare to resume

Flight attendants would be required to undergo mandatory COVID-19 test every fortnight, at the expense of their employers.



Ministry of Health approves COVID-19 protocols for aviation sector, as airports prepare to resume

Flight crew members will now be required to wear Personal Protective Equipment (PPE) and observe Infection, Prevention and Control (IPC) measures for the duration of their flights.

They would also be required to undergo mandatory COVID-19 test every fortnight, at the expense of their employers.


This is part of the mandatory COVID-19 protocols approved by the Federal Ministry of Health for the aviation industry, as the Nigeria Civil Aviation Authority (NCAA) prepares to gradually ease the lockdown on its operations on June 7.

NCAA Director-General, Captain Musa Nuhu, stated this at a virtual event organised by the Aviation Safety Round Table Initiative (ART) titled COVID-19: The Challenges and Opportunity for Nigeria’s Aviation Value Chain, During and Post.

According to Nuhu who sent letters to airline operators, airports, and other service providers, these new protocols override existing practices where the international flight crew members are quarantined for 14 days upon their return to Nigeria.

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(READ MORE: COVID -19: Nigerian companies have records of innovation to turn pandemic challenge to gold)

In addition, the airlines must also conduct orientation and sensitisation of their crew on Infection, Prevention and Control (IPC) measures, in addition to having adequate stock of PPE, minimum 70% alcohol-based hand sanitizers, and Universal Precaution Kits (UPK) on board every aircraft.

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The letter reads; “Onboard the flight crew will request passengers wash their hands after using the lavatory, apply disinfectant spray in lavatory every 60 minutes during the flight and maintain a safe distance between passengers and themselves; avoid direct physical contact and serve only pre-packed meals to passengers.

“Flight deck crew must wear non-medical face masks and gloves but can remove face masks when the cockpit door is closed. They must also ensure safe removal of gloves after performing specific tasks and avoid touching their face and eyes with unclean hands.” 


The new protocols according to Nuhu, are a result of a proposal earlier sent by the NCAA to the Ministry of Aviation for approval.


Recall that on March 13, President Muhammadu Buhari had announced a shutdown of airport operations for one month. The shutdown was initially extended by two weeks and then later extended by four weeks; all part of measures to contain the COVID-19 pandemic.

The decision to commence flights at the airports on June 7, according to the NCAA, is to avoid chocking the “system”.

(READ MORE: Air Peace to evacuate stranded Indians from Lagos to Kerala)

The airports where operations will commence are the Murtala Mohammed Airport, Ikeja; Nnamdi Azikiwe Airport, Abuja; Aminu Kano Airport, Kano and the Port Harcourt Airport, Choba, Rivers State.

“We may resume domestic operations with four or five airports and we hope to expand as we get better. We don’t want to rush everything at the same time and get it choked up,” he said.


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On the issue of physical distancing…

The issue of a 2 metre physical distance has, however, not been concluded in the newly approved protocols, as the NCAA has stated that airlines may not be able to adhere to it.

“Every money is important and we cannot achieve the two-meter physical distance. We are hopeful in the next few days we can resolve those issues and allow the airlines to commence operations,” he said.

In his presentation, Air Peace Chairman, Mr Allen Onyema, also disagreed with plans to leave the middle seats of aircraft free as that could further affect  the revenue of the airlines.

He suggested instead that the government provide intervention for local carriers to enable them retain their workers as the pandemic has bored a deep hole in their pockets.

“We should be asking the government for specific things that would help retain jobs. Job retention should be first and foremost. These people’s livelihood are endangered and we must do everything possible to keep  their jobs.”

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Business News

Job listings spike up by 183% in April –Jobberman

Jobberman released figures showing a 183% increase in job listings on its platform in April 2020, thanks to its #UnityInAdversity campaign.



Job listings spike up by 183% in April – Jobberman

Notable job placement website, Jobberman, has released figures showing that there was a 183% increase in job listings on its platform in the month of April 2020.

This increase, according to Jobberman, is a result of the #UnityInAdversity campaign which allowed companies to post job listings and access Jobberman’s database of over 2.2 million professionals across Nigeria for free, rather than paying the usual fees. This was the company’s way of showing support to businesses and individuals, amid the economic challenges which resulted from the COVID-19 pandemic.


According to the release from Jobberman, this campaign came at a cost to the company since it was trading off its revenue by offering for free, the same services which formed its major source of income.

“At the beginning of March, Jobberman Nigeria saw a 70 percent decrease in job listings due to the reduced economic activity caused by the enforced lockdown and many companies shutting down recruitment budgets to cut costs. Jobseeker sign-ups also decreased by 17 percent. Jobberman took the bold step to put employers’ and job seekers’ needs first” the statement read.

(READ MORE: Merger, Tax incentive boosts BUA Cement FY 2019 result)

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The campaign, which is billed to run till June 30, has paid off greatly as data for April’s job listings alone was more than that of the entire Q1 2020 period. See a breakdown of the job listings below:

  • Almost a fifth of the positions (18.79%) were listed in the tech sector
  • Banking, finance, and insurance accounted for 9.27%
  • Education and training had 6.78 percent
  • IT & Software positions accounted for 11.69%
  • Sales had 13.32%.

Note that with the increase in job listings, job seeker sign-ups also increased by 39% in April alone.

Job listings spike up by 183% in April – Jobberman

Speaking about the campaign, the CEO of Jobberman Nigeria, Hilda Kragha said, “The COVID-19 pandemic has made the process of connecting talent to opportunities more complicated and we are fully aware of the strain businesses and individuals in Nigeria are facing. We plan to be here for the next 10 years so making this small sacrifice to help our users navigate these difficult times is something that we think is definitely worth doing”.

Kragha also noted that the campaign has encouraged healthy competition as candidates strive to show themselves qualified for the position.


“We have found that soft skills such as emotional intelligence, business etiquette, time management, which are often overlooked and underestimated in Nigeria, can make a big difference. We know the power of soft skills and we are committed to empowering individuals with the training and soft skills they need to succeed in the workplace” she explained further.


(READ MORE: Partnerships Beyond The Partners… Another Lesson From Interswitch)

Sequel to this, the company also launched a free soft skills training programme to help job seekers (between age 18 and 30 years) acquire the needed soft skills and better their chances of gaining employment.

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