The Corona Virus pandemic hit the world, even though it hit some more severe than others. There’s no consensus on whether it hit Nigeria mildly or severely, but it has affected both large and small scale businesses here in Nigeria.
Nigeria is the most populated country in Africa with a population of about 200 million people according to the last population census. Nigeria is currently the poverty capital of the world and It is estimated that over 69 million people out of this 200 million people don’t have access to clean water.
Notwithstanding these bad reviews, Nigeria is still and will always remain the giant of Africa. It has the largest economy in Africa, and if Lagos State, Nigeria’s commercial capital were to be country, it would still be the fifth largest economy in Africa according to a Wikipedia article.
Just like other nations of the world, corona virus has affected business all over. From travel, to health care, to entertainment, the whole world has literally come to a stop.
Here are a few ways the Corona Virus Pandemic has affected Small- and Large-Scale Businesses In Nigeria
1. Shares are down:
Global shares are down, so are shares listed in the Nigerian Stock exchange. While a good number of Nigerians have full fate in the government to turn things around, a lot of investors believe the government isn’t doing enough to nip this spread in the butt. As a result, this uncertainty has caused a downward spiral in the value of stocks held at the Nigerian stock exchange.
In response, the Nigerian central bank slashed interest rates to encourage more people to borrow and increase spending in the economy. Whether this is working or not, the jury is still out.
2. Flights are grounded:
One of the worst hit industries are airlines. Airlines and Flight booking websites have reported a 100% loss in revenue from flight bookings. After all, the whole world was told to stay at home so no one is traveling. No business trips or holiday vacation trips are being planned.
3. Oil prices have plummeted:
This is the most worrying for Nigeria as a country. Being that over 60% of Nigeria’s government revenue comes from oil sales, government revenue has drastically dropped. Also considering that other sources of revenue such as tax has also dropped, it’s a miracle that Nigeria is still afloat.
Most of the countries who buy oil from Nigeria are on lockdown, energy consumption in most countries are at an all-time low, consequently making the sale and price of crude oil low. Add this to the Russia Saudi price war that saw oil prices get to an all time low in a century, the corona virus has really dealt with the Federal government.
4. Imposed lockdown beginning to take its toll
The imposed lockdown has made it impossible for people to go to work and earn a living. Everybody who depends on day to day work, like plumbers, electricians and traders have effectively been grounded. The only set of people who are having a positive effect from the corona virus are online stores like Amazon, freelance websites like SevenFinder, Upwork and Fiverr who depend on digital skills and products delivered over the internet.
5. Transportation has become impossible
Moving from one place to another within the country has become extremely difficult. The hike in transportation prices, the imposed curfews and every other thing in-between has further worsened the already poor transport system in Nigeria. This has also taken food out of the mouth of transport workers.
6. Business meetings cancelled
Because all forms of transportation are grounded, or heavily restricted, business deals have been canceled or postponed till further notice. A deal thought to have been closed now need to be re-evaluated taking into consideration the new realities of today.
Indeed, the corona virus has brought a lot of hurt to many nations like Nigeria. But its not all gloomy. Did you know that this virus has caused an all-time low in greenhouse gas emission in three decades? The oceans are cleaner, the air is cleaner and most people have had time to take a break from work and be with their family.
Moreover, this pandemic will come to an end soon. Probably sooner than we expect.
Let’s Remain Positive.