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Effects Of Covid-19 On Nigerian Businesses Leave a comment
In December 2019, there was a flare-up of the covid-19 in Wuhan, the capital of Hubei area in Central China. Since then, a few production lines in China have stayed shut, while labourers have been compelled to avoid function as a significant aspect of endeavours by specialists to diminish the spread of the infection. Nigeria, like some other African countries, might be free from the virus for now. Still, the impact of the viral outbreak on the nation’s economy and businesses is quite alarming.
Two new cases of #COVID19 have been confirmed in Nigeria: 1 in Lagos and 1 in Osun
— NCDC (@NCDCgov) March 25, 2020
Both cases are returning travellers to Nigeria in the last 7 days
As at 07:00 am 25th March, there are 46 confirmed cases of #COVID19 in Nigeria. 2 have been discharged with 1 death pic.twitter.com/1NLKTFG7LF
China remains Nigeria’s greatest wellspring of imports. About N1.99 trillion worth of merchandise was imported from the Asian nation in the primary portion of 2019, as indicated by the Nigeria Bureau of Statistics (NBS). Nigeria imports various types of products running from belongings to mechanical apparatus and crude materials.
Additionally, Nigeria offers Chinese organizations an assorted scope of rewarding business and exchange openings, as a significant aspect of its alluring respective exchange arrangement between the two countries. As of May 2019, Chinese organizations had put $20 billion in more than 150 firms in Nigeria.
The Image below shows how to stop the spread of Covid-19:
Covid-19 And SMEs In Nigeria
With the reduction in the number of goods in the market, prices are hiked as people struggle to grab what’s left of the products. Many traders and their goods are stuck in china, awaiting a positive outcome from the virus break.
Businesses in Nigeria have reached the point of selling without restocking, and this isn’t very good for business, saving money in the banks won’t guarantee the smooth movement of commerce.
Looking at the rate at which the Covid-19 keeps spreading, one would advise Nigerian business owners and entrepreneurs to focus on homemade goods. Still, the truth is, these homemade goods are made with raw materials imported from China and other countries.
With the current situation of china, we can observe that export trade in the country is hugely affected. Many workers have been quarantined as a result of the outbreak. Small business owners have to brace up for the challenge and seek alternative ways of staying afloat in this time of crisis.
Conclusion
The effect of the covid-19’s pandemic on Nigeria’s economy is increasing day by day. Oil prices have reduced, and the rate of dollar to naira increases slightly. This spells doom for the Nigerian economy if the virus continues in the long run.
Nigerian business owners and entrepreneurs should be proactive in seeking solutions to this menace before our economy crashes to the ground.