Nigerian Businesses record staggering losses due to pandemic

Between March and April of 2020, a shocking 97% of all Nigerian businesses recorded losses due to the outbreak of Covid-19. 87% of businesses surveyed said they had been negatively affected by the virus and lockdown restrictions.

The figures have been taken from the "National survey report on the impact of COVID-19 on Nigerian private sector," which asked businesses how they had been affected between 9 March and 10 April via telephone calls and questionnaires.

A following 13% said they had been positively affected by coronavirus, although these businesses predominately were in the health and pharmaceutical industry.

Three-quarters of businesses said that the internal lockdown restrictions had affected day-to-day business, whilst those exporting goods overseas have been hindered by the border closures. Many companies are recording losses up to $1 million.

The flooring of the price of oil severely affected the value of the Naira earlier in the year, as international lockdowns brought air travel to a halt and fewer cars are on the road.

According to Nigeria's statistics bureau, four in every 10 Nigerians (42%) have lost their jobs due to the impact of coronavirus

The coronavirus outbreak has made Nigeria among other countries on the continent re-examine their dependence on foreign imports of raw materials. 43% of Nigerian business said that they depend on China for products and materials, and have seen their supply chain greatly suffer due to lockdown restrictions.

In opposition, only 19% of businesses source raw materials from within Africa.

These figures can only act as a new incentive for businesses around the continent to redesign their supply chains and business models to become more flexible and self-sufficient post-lockdown.  

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