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Akinnike Michael

The Impact of Covid-19 on Nigerian businesses

Covid19

It has been a long year and we are all in the face of this pandemic called Covid19. We are anxious and obnoxious about the virus. A lot of try and error happening across the world, we are all looking forward to cure and vaccine, in the middle of all the events people are dying, many are losing their jobs and businesses are crashing. This is a quick diagnosis of the impact of Covid19 on Nigerian businesses.

Retrenchment: The pandemic came with a shock for many firm in Nigeria without business continuity plan or contigency plan, we all were forced to stay at home. This has led to a shut down of a few firm and leading to people losing their jobs. According to Xinhua, 40 million Nigerians may lose their jobs at the end of this year. A whooping 40 million uemployed in the Nigerian market means increase in poverty and insecurity. As Kola Aina said, “Every entrepreneur should do long term thinking and short term planning”.

Business closure: Many businesses are closing down, a lot of businesses using loan to stay in business got shut down because they could not do business for weeks leading to no revenue and they did not have a plan to pivot. The tourism and hospitality cannot operate normally as before, there are no checking in from foreign experts and corporate travellers have reduced, as we all now attend meeting using cloud video conference platforms. The Aviation sector is getting it biggest hit in decades. Only cargo and special flights are in the sky. MSMEs are struggling to keep afloat, over 3 million SMEs in Nigeria according to SMEDAN, many of which cannot access loan or pillative to stay in business. The base of our economy are shaking and government must now pay attention to them else there is a fire on the mountain.

Economy: The Nigerian economy has enjoyed and lavish the days of oil plenty and boom. We are now in the middle of a pandemic which has hit the oil industry to its lowest, the naira currrency is confused as we speak and cost of governance remain high. The effect of this is making DSTV drop right of televising premier league and champions league. The premier league right will continue to increase at a steady 8% yet DSTV cannot increase subscription by 8% coupled with naira dropping value continuously. Many tech startup that buy lot of online services in dollars and charge customers in Naira now know that there is a cut in profit or even may be loss. Recently @oluyomiojo tweeted this ” Just a reminder that $50k Harvard online classes tuition ——> N22,500,000 (in today’s money) N18,000,000 (2019) N7,500,000 (2014) Yeah. That the tweet”

The reality of the poverty of Nigeria is reflected in the value of Naira.

At the base of these as we open our economy and begin to live with the pandemic is the question will the government save businesses or their pocket? Will the government revive the economy or their greed? Will government put people or themselves first? This is the time to think and act. The rich is getting poorer only that it may not be visible.

Update:

COVID-19 Case Updates- 6thJuly 2020

  • Total Number of Cases – 29,286
  • Total Number Discharged – 11,828
  • Total Deaths – 654
  • Total Tests Carried out – 152,952

According to the NCDC, the 575 new cases were reported from 20 states- Lagos (123), FCT (100), Delta (58), Edo (52), Ogun (42), Katsina (24), Bayelsa (23), Rivers (22), Borno (19), Plateau (18), Ondo (18), Oyo (17), Kwara (15), Osun (13), Enugu (9), Nasarawa  (7), Abia (6), Cross River (5), Kaduna (3), Ekiti (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 11,367, followed by Abuja (2,281), Oyo (1,530), Edo (1,435), Delta (1,285), Kano (1,268), Rivers (1,205), Ogun (1,047),  Kaduna (868), Katsina (628), Borno (547), Gombe (520), Bauchi (516), Ebonyi (503), Ondo (474), Plateau (454), Abia (391), Enugu (381), Imo (352), Jigawa (318).

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