At least 20 per cent of the full-time workforce in Nigeria lost their jobs during the COVID-19 pandemic in 2020.
This was revealed in a new report released on Tuesday tagged ‘The Impact of COVID-19 on Business Enterprises in Nigeria’, jointly released by the United Nations Development Programme (UNDP) and the National Bureau of Statistics (NBS).
Based on in-depth interviews with almost 3,000 businesses from both formal and informal sectors across major industries of the economy, the report assesses the impact of COVID-19 on business enterprises in the country.
“While there have been promising signs of recovery this year, COVID-19 has had an outsized socio-economic impact on Nigeria,” it 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 per cent of enterprises interviewed, experienced a decline in revenue and 73 per cent 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 per cent, in comparison to 2019 revenues while about 60 per cent 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.
In addition, 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.