COVID-19: How small businesses in Nigeria can mitigate the impact

With the devastating impact of the COVID-19 induced lockdown on the Nigerian economy, small and medium enterprises (SMEs) are facing unprecedented challenges. Muda Yusuf, the Managing Director of the Lagos Chamber of Commerce and Industry, sheds light on the dire situation and proposes a post-coronavirus rescue plan for economic sustainability. The lockdown measures have brought business activities to a screeching halt, leaving many businesses, especially those in the informal sector, struggling to survive. The information sector, which contributes significantly to Nigeria's economy, has been hit hard with 60% of the economy dependent on it. Many businesses in this sector rely on daily income, making the lockdown particularly harsh on their livelihoods. The impact extends beyond just economic consequences, as there are emerging social implications due to prolonged closure. As the nation grapples with the challenges posed by the pandemic, stakeholders are urged to collaborate and devise strategies to support SMEs and kickstart economic recovery. Yusuf emphasizes the need for government intervention to provide relief to businesses. One key proposal is the provision of moratoriums and interest rate concessions for businesses struggling with debt repayment. The central bank has already initiated some measures to provide support, but more clarity is needed on how commercial banks will assist in implementing these relief measures. Additionally, tax concessions are recommended to alleviate the financial burden on businesses. With sectors like aviation experiencing a complete shutdown, targeted policies and sector-specific support are essential for a sustained recovery post-pandemic. Small businesses, in particular, require significant support to weather the storm and revive their operations. While some banks and tax authorities have offered limited support, a more comprehensive, systemic approach is needed to ensure the survival of businesses across all sectors of the economy. As businesses face an uncertain future and struggle to stay afloat, proactive measures and decisive action from policymakers are crucial to enable a swift recovery once the crisis subsides.