Many businesses have felt the effect of coronavirus pandemic from the moment it was first discovered in China last year, which have led to most economies been on stand-still, with the fear of uncertainty and business doors been shut to reduce the spread of the virus.
Nonetheless, countries such as Spain, Italy, the United Kingdom and the United state of America are on lockdown and the numbers of people losing their jobs are nothing to write home about.
Nevertheless, Nigeria is an Oil producing country with her economy and budget depending on the oil price on the global market. Has of the time of this writing the price of Brent crude is 20.37 dollar per barrel against Nigeria budget estimate of 60 dollars per barrel and the Nigerian government has already cut the budget of 2020 of the country due to the downfall on the oil price. Therefore below are few ways How coronavirus will affect businesses in Nigeria
Disruption to supply chains
Coronavirus will surly affect the supply chain in Nigeria which is something we are getting to see since the lockdown. Transportation by road is used by almost 95% between the country for people to move around, with the fall in crude oil price and closure of airports and borders it will take longer for foreign cargos to reach ports and cause delays in the distribution.
Lost Of Jobs
Yes, you read that right majority of the big and small firm could close down if there is no bailout of expenditure to cover staff salary payment during the lockdown period and that will lead to unemployment rate going up which is something currently happening in the united state of America and all around the world.
Travel & Tourism
Has the current state stands nobody could say how long the coronavirus will be with us before a cure is found. While many manufacturing businesses may have the ability to build inventory and catchup on falling, However, for the little time the virus has been evolving around the world its impact has been felt on the financial market, crude oil prices and the hospitality businesses all around the world. Lending to flight and hotel booking cancelled and business owner thinking of strategic ways to save their business during this period.
Pharmaceutical and Healthcare
It may seem the Pharmaceutical companies in Nigeria might be winning right now even after the president of America announced chloroquine could stop the virus and that has lead to pharmacy running out of the essential drugs and restock could be hard or impossible. Although that is not the only drug needed during this pandemic if borders and lockdown go longer pharmaceutical companies could run out of materials to produce more of these drugs as most of the materials are imported from China.
In conclusion, the current lockdown is not helping the government and businesses of any country with Nigeria included, as many businesses are shut there is no way they can pay their taxes nor can the government generate income. This has to lead to low revenue and government looking of innovate way to get business opening as soon as possible.