Introduction

In December 2019, a mutated virus of the coronavirus family named SARS-CoV-2 by the International Committee on Taxonomy of Viruses (ICTV) ravaged Wuhan, an emerging business hub in China, causing over 70 000 cases and about 1 800 deaths in its very first fifty days through a disease it caused named COVID-19 by the ICTV.1 The disease, which has general symptoms of fever, dry cough, and shortness of breath,2 gained momentum and spread beyond Chinese national borders. By the 27th of February 2020, it was present in 48 countries, including Nigeria, which recorded its first case, according to a report by the World Health Organization. It assumed the status of a global epidemic on the 11th of March 2020, having caused 118 319 cases and 4 292 deaths globally,3 when the World Health Organization declared it a pandemic.

By this time, the world in general, and Nigeria, in particular, had become aware of the threat the virus posed to humanity. This led to the implementation of drastic measures and policies by various states, international organizations, firms, individuals, etc. to curb the spread of the virus and mitigate its effects on society. Among the measures implemented were nationwide lockdowns, bans on public gatherings, the closure of schools, restaurants, bars, and sports clubs; mandatory work-from-home orders; cancellation of domestic and international flights; a ban on the entrance of non-citizens; the evacuation of citizens from abroad; etc.4

The implementation of these policies and measures greatly affected the world’s economic structure, and the effects of the coronavirus global epidemic on human relations and actions gave rise to many legal issues. This article will attempt an appreciation of the effects of the coronavirus global epidemic on the law and the economy through a comprehensive problem-and-solution approach.

Global Epidemic Coronavirus and the Economy

The Effects

The global coronavirus epidemic has had the greatest impact on the American economy. According to an analysis by the United Nations Trade and Development Agency, 2 trillion US dollars are estimated to be lost to the outbreak in 2020 alone. The outbreak hit so hard on economic activities that by February 2020, global demand and supply of goods and services had tremendously declined, heralding a global economic meltdown.5 The situation is particularly grave for Nigeria, whose economic mainstay is its petroleum exports, given that the price per barrel of oil has been 30 USD on average in the international market since the outbreak, which is mainly due to a low oil demand occasioned by the outbreak and the power tussle between the Organization of Petroleum Exporting Countries and Russia over output cuts.6

Another significant generator of revenue in Nigeria, apart from its petroleum exports, is the manufacturing industry. However, with the recent developments, a decline in the revenue generated by this sector has been noticed, which is largely due to the nationwide lockdown imposed by President Muhammadu Buhari through the COVID-19 regulations. Additionally, Nigeria is largely dependent on foreign raw materials for the servicing of its manufacturing industry, and the restriction on importation occasioned by the disease outbreak kept a large portion of productive and manufacturing activities within the country.

The negative effects of the COVID-19 global epidemic extend to other sectors of the economy, such as the transportation and tourism industries and the service industries, including financial and consulting services. Given all of the restrictions imposed both naturally by the outbreak and by subsequent legislation and regulations, SMEs are arguably the most affected category of economic players. Side by side with the owners of these SMEs are the employees and staff in various sectors who have consequently lost their jobs because of the inability of their employers to keep them. More despicably, according to a report by Business Elites Africa, the Nigerian government is yet to announce its relief plans, if any, for Nigerian small business owners during this COVID-19 pandemic.

While all these things are going on, inflation has been on a perpetual rise, causing untold hardship for Nigerians in the middle and lower economic strata. The increase from 12.13% to 12.20% of the inflationary rate from January 2020 to February 2020 is believed to have been caused by the coronavirus global epidemic outbreak. This is according to a report by Reuters. Based on the foregoing, financial analysts have predicted that the Nigerian 2020 budget, which was prepared with a 20% increase over the previous one and based on expectations of a stable oil price of 57 USD per barrel and 2.18 million barrels of output per day, is unrealisable.7

The Solutions

It is said that at the end of every tunnel, there is light. However, without conscious efforts and articulated procedures, the world may be lost in the labyrinth of the coronavirus global epidemic tunnel's economic consequences and never find the light at its end. One of those who share this view is the Centre for the Study of the Economies of Africa (CSEA). According to it, the economic pains that accompanied the coronavirus global epidemic might not go away as soon as expected except through well-thought-out policies and measures. The following are some practical and pragmatic approaches to returning the economy to normalcy.

Since firms are the driving force of any economic structure, an effort channelled towards easing their struggle at this time will be more beneficial. Reduced interest rates and borrowing costs, as well as tax cuts and tax holidays for these struggling businesses, will be a good start toward boosting the economy.8 This will save these firms some money and avert the chances of liquidation and bankruptcy.

Another practical approach for immediate effect is a cut in the budget for the fiscal year. Since the estimations are nowhere close to reality, it is expected that the government should reduce spending through a slash in the budget, especially in nonessential areas, and have a shift in focus, as in the case of Nigeria, from oil to non-oil revenue-generating components such as the telecommunications industry.9 Additionally, for immediate effect, the provision of palliatives will spare the citizens some money and curb any deflationary tendencies.10

Other measures proposed include the creation of an enabling environment for businesses and firms to strive, the liberalisation of market access to allow greater participation of the private sector in economic activities, the provision of subsidies for essential products such as electricity, telecommunications (at this time), petrol retail price, water supply, and so on. The government should also invest heavily in technology and boost local tech start-ups. Indeed, technology is the surest way of overcoming the strains of this outbreak. However, for a long-term solution, a diversified economy is the best bait.

The Global Epidemic of Coronavirus and the Law

According to the historical and sociological schools of thought, the law is a product of the economic, social, cultural, religious, and psychological lives of the people. Because the law is a result of all of these factors, it will have an impact on all aspects of citizens' lives. Right from the beginning, the provisions of Section 14 (2)(b) of the 1999 Constitution of the Federal Republic of Nigeria were invoked. The portion that provides that "the security and welfare of the people shall be the primary purposes of government" confers on the government the responsibility to ensure the welfare of its citizens, which includes safeguarding their health.

Additionally, Sections 17(c) and (d) of the same Constitution put health care among the social objectives of government, with (d) mandating the government to ensure adequate medical and health facilities for all persons. The cumulative effect of these provisions, together with those of the National Health Act, 2004, the African Charter on Human and Peoples' Rights (Ratification and Enforcement) Act, and the Patients’ Bill of Rights (PBoR) 2018, elevates access to health care to a status near that of fundamental human rights like those contained in Chapter IV of the Constitution.11

In the provision and insurance of access to health facilities by the government, the fundamental human rights of Nigerians are put in jeopardy. This is based on the provisions of Section 45(1)(a), which puts limitations on these rights in the interest of public health. It reads: "(1) Nothing in sections 37, 38, 39, 40, and 41 of this Constitution shall invalidate any law that is reasonably justifiable in a democratic society (a) in the interest of defense, public safety, public order, public morality, or public health." Because COVID-19 is a highly contagious disease, one of the measures that could be implemented is a restriction on citizen movement. This power can be exercised either by the President of the Federal Republic of Nigeria or the Governor of a state under the provisions of Sections 2, 3, 4, 6, and 8 of the Quarantine Act of 1926. However, it is pertinent to note that quarantine is an item on the exclusive legislative list as provided in item 54, Part 1, of the Second Schedule of the 1999 Constitution of the Federal Republic of Nigeria. The effect of this is that governors and states within Nigeria cannot legislate on matters relating to quarantine but can make legislation to curb the spread of the disease. Why is this so? Section 8 of the Quarantine Act of 1926 grants governors the same powers as the president, including the authority to declare any place an infected local area; the authority to make regulations prescribing the steps to be taken within Nigeria upon any place, whether within or without Nigeria, being declared an infected local area; and the authority to prescribe the introduction of any dangerous infectious disease into Nigeria or any part thereof from any place outside Nigeria.

The purpose of this act, as stated in the introduction, is to provide for and regulate the imposition of quarantine as well as make other provisions for preventing the introduction and spread of dangerous infectious diseases into Nigeria as well as the transmission of dangerous infectious diseases from Nigeria. However, the Constitution provides in Section 1(3) that "if any other law is inconsistent with the provisions of this Constitution, this Constitution shall prevail, and that other law shall, to the extent of the inconsistency, be void." It is obvious that the powers granted to the Governors to legislate on matters relating to quarantine are inconsistent with the provisions of the Constitution and, as such, are void to this extent.

Beyond these, the effects of the coronavirus global epidemic can also be seen in the contractual relationships between people. This spans several industries and the laws regulating them. They include the oil and gas industry, the aviation industry, the maritime industry, the labour industry, etc. In all these cases, the major question is what the law says concerning breach of contract occasioned by the coronavirus outbreak. Can it serve as an excuse?

It is important then to note that if a provision of a "force majeure" clause (force majeure clauses are contractual clauses that alter parties' obligations and/or liabilities under a contract when an extraordinary event or circumstance beyond their control prevents one or all of them from fulfilling those obligations),12 was made in the contractual agreement, which happens to include a pandemic, an epidemic, or any such thing identifiable with the coronavirus global epidemic, a breach of such a contract which can successfully be proven to have been occasioned by this outbreak is most likely to relieve the party from any contractual liability incurable if it is so worded in the clause because the clause's interpretation is usually literal and under the specifications.

In a situation whereby there is no force majeure clause or the existing one does not provide for this coronavirus global epidemic, under the doctrine of frustration, the offending party may be relieved of the contractual liabilities incurable as a result of a breach of the terms of the contract. However, this is only in a situation where performance is impossible as a result of government policies or acts of God. When performance is difficult or will result in significant charges that render the contract non-profitable, the contract terms remain binding, and any breach by a party will incur contractual liabilities on the latter.

Contracting parties should, however, review their contractual agreements and update the terms of the force majeure clauses to account for this circumstance. Aside from these, the effects of the global coronavirus epidemic on businesses have resulted in layoffs and terminations. However, what does the law say about this?

The Labour Act contains provisions for the termination of an employment contract. Under sections 7, 8, 9, 10, 11, and 12, the provisions are that if the employer seeks to terminate the employment contract, he is to give prior notice to the employee according to a time frame related to the time the contract has been binding. On the deduction of wages, the act is also clear in stipulating under Section 5 the conditions under which deductions may be made from the wages of employees and the extent of such deductions. It includes seeking the written consent of an authorised labour officer, seeking the written consent of the employee, and other certain conditions to be met.

Conclusion

The coronavirus global epidemic outbreak had a wide-ranging impact on Nigerians' and the world's lives. Its effects on the economy are perhaps the most obvious and have been repealed with negative consequences. Beyond the economy, it brought to light some lacunae in our laws. However, our response to this is the most important.

References

1 Shereen, M. A., Khan, S., Kazmi, A., Bashir, N. and Siddique, R., (2020). COVID-19 infection: Origin, transmission, and characteristics of human coronaviruses. Journal of Advanced Research [online]. 24, 91–98. [Viewed 25 April 2020]. Available from: doi: 10.1016/j.jare.2020.03.005

2 Ibid.

3 Coronavirus disease 2019 (COVID-19) Situation Report No. 38. World Health Organization (WHO)

4 Al Jazeera, (2020). Coronavirus: All you need to know about symptoms and risks [online]. Breaking News, World News and Video from Al Jazeera. [Viewed 25 April 2020]. Available from: https://www.aljazeera.com/amp/news/2020/9/20/coronavirus-all-you-need-to-know-about-symptoms-and-risks

5 Ross, J., (2020). COVID-19 Crash: How China’s Economy May Offer a Glimpse of the Future [online]. Visual Capitalist. [Viewed 25 April 2020]. Available from: http://www.visualcapitalist.com/covid-19-economic-impact/. Onyekwena, C. and Ekeruche, M. A., (2020). Understanding the impact of the COVID-19 outbreak on the Nigerian economy |

6 CSEA AFRICA - Centre for the Study of the Economies of Africa | Non-profit think tank that conducts independent research. [Viewed 25 April 2020]. Available from: https://cseaafrica.org/understanding-the-impact-of-the-covid-19-outbreak-on-the-nigerian-economy/

7 Ibid.

8 Ibid.

9 Ibid.

10 Ibid.

11 Ibid.

12 Jones, E., (2020). Will Covid-19 trigger a force majeure clause? [online]. Pinsent Masons. [Viewed 25 April 2020] Available from: https://www.pinsentmasons.com/out-law/guides/COVID-19-force-majeure-clause