Twenty percent of the full-time workforce in Nigeria lost employment during the COVID-19 pandemic in 2020, a new report jointly released on Tuesday by the United Nations Development Programme (UNDP) and the National Bureau of Statistics (NBS), has revealed.
The report tagged ‘The Impact of COVID-19 on Business Enterprises in Nigeria’, said the report assesses the impact of COVID-19 on business enterprises in the country, adding that the report was based on interviews with almost 3,000 businesses from both formal and informal sectors across major industries of the economy.
The report revealed that one in three business enterprises surveyed indicated that some businesses have permanently closed due to operational challenges resulting from the pandemic.
“While there have been promising signs of recovery this year, COVID-19 has had an outsized socio-economic impact on Nigeria,” the report said.
“From disruptions in supply chains to ongoing supply and demand shocks and a drop in consumer confidence, these challenges are expected to leave a lasting impact on the businesses and enterprises that make up the backbone of the economy.”
The report also highlighted the significant decline in revenue faced by enterprises and establishments across the country due to the pandemic.
It indicated that 81 percent of enterprises interviewed, experienced a decline in revenue and 73 percent stated that they faced liquidity challenges due to secondary impacts of the pandemic in 2020.
Data from the report showed that the median loss in revenue remained at 44 percent, in comparison to 2019 revenues while about 60 percent of enterprises surveyed experienced an increase in operational costs, with the price of raw materials and logistics being the top two contributors to the increase.
Other operational challenges included access to credit and capital, high expenditure on utilities, and inadequate social safety net, especially for informal enterprises.
The Statistician-General of the Federation, Dr Simon Harry, highlighted the importance of the survey results.
“As the economy begins to show signs of gradual growth, this report contains important information that can guide policymakers in their interventions to mitigate the negative socioeconomic impacts of
COVID-19 in the country,” he said.
