A new report by the United Nations Development Programme (UNDP) and the National Bureau of Statistics (NBS) removes speculations on the impact of the covid-19 outbreak on employment in Nigeria. It shows that 20 percent of Nigeria’s full-time workforce lost their jobs during the COVID-19 pandemic in 2020.
The research, which evaluates the impact of COVID-19 on Nigerian companies, is based on in-depth interviews with over 3,000 firms from both the formal and informal sectors throughout the economy’s key industries. While there have been some hopeful indications of recovery this year, COVID-19 has had a large socioeconomic impact on Nigeria.
These challenges are likely to have a long-term impact on the firms and organisations that make up the economy’s backbone, from supply chain disruptions to continuing supply and demand shocks and a decline in consumer confidence.
The report themed The Impact of COVID-19 on Business Enterprises in Nigeria, also highlights the considerable income loss experienced by businesses and institutions across the country as a result of the epidemic.
Due to the ripple effects of COVID-19 in 2020, 81 percent of businesses surveyed reported a decrease in income and 73 percent indicated they encountered liquidity problems.
In contrast to 2019 revenues, the median revenue loss recorded remained at 44%.
The price of raw materials and logistics were the top two drivers to the increase in operational expenses for over 60% of the businesses polled.
Other operational problems were a lack of access to finance and capital, high utility costs, and a lack of a sufficient social safety net, particularly for informal businesses.
Furthermore, the report states that one out of every three firms polled can recall a business that has permanently shut down due to pandemic-induced operational challenges.
The Dust is Yet to Clear
According to the report, businesses are expected to continue to feel the effects of the epidemic long after public health precautions are eased. Despite the fact that there were fewer limitations in place at the time of the interviews, 74 percent of businesses reported lower output levels compared to the same period in 2019.