How COVID-19 is Affecting Business Owners in Nigeria

Ever since the outbreak of the pandemic COVID-19 in Central China last year December, several factories have been shut down in the country of China. The effect of this is that many workers have been forced to remain in their various homes against their wish. This is all in a bid to limit the spread of the virus.

The COVID-19 virus is one which can be easily transmitted from one person to another; what makes it even more dangerous is the fact that contact with an affected person does not need a long period of time for transmission to occur. 

One would have thought ‘what happens in China remains in China,’ but that is not the case as several countries in the world have become victims of this pandemic.

The massive disruption in the economy of China as a result of this pandemic has extended to that of other countries as well, our beloved Nation Nigeria not being an exception. Several Nigerian businesses that have thrived so far on the importation of goods and products from China are suffering greatly as borders are being shut down. 

Ever since the news of the unidentified Italian man who tested positive to the virus hit our screens in Nigeria, the Nation has been affected adversely. No one is left out, and our Nigerian business owners are not exempted.

IMPACT OF COVID-19 ON NIGERIAN BUSINESS OWNERS

Nigeria is one Nation where diverse forms of businesses are being run by several business owners. Below is a list of businesses in Nigeria and how each is being affected by the outbreak.

• Importers

These are Nigerian business owners who import goods in bulk from China or any other country and sell to their Nigerian consumers.

So far, Nigeria’s biggest source when it has to do with importation of goods and products is China. According to records by the National Bureau of Statistics, the number of goods imported into Nigeria from China in the first half of the year 2019 stood at about N1.99 trillion.

These products range from personal household goods to heavy-duty products. Ever since the COVID_19 pandemic, however, there has been a drastic reduction in the supply of goods and products as the Asian country is now on lockdown.

This leaves Nigerian business owners whose major source of importation is China at a great loss as such businesses have to either wrap up temporarily or find other means of survival.

• Street Hawkers/Market Sellers

While compiling a list of business owners in Nigeria, even the street hawkers and market sellers cannot be left out. This is because their major/only source of livelihood is on the streets and market places. 

As a result of the COVID-19 outbreak, the Nigerian government has restricted movement of people so as curb further spread of the pandemic. What this means for the street and highway hawkers is a shutdown of their businesses.

In addition, several public markets have also been locked up so as to prevent the gathering of too many people. For these markets sellers, this could bring about a temporary end to their businesses for as long as it takes the Nigerian government to rid the nation of the pandemic.

• The Nigerian Film Making Industry

Movies cannot be produced if they don’t get shot. And shooting a movie means bringing people together on a set to make filming possible. 

For Nigerian producers, actors and everyone whose source of livelihood is in the film making industry, COVID-19 outbreak means all film productions have to be on hold. This in return means very little or no income turn in for business owners in this field.

• Sports Betting Companies

One of the major events that have been cancelled as a result of the COVID-19 outbreak is the sporting event. Football leagues such as the Italian Serie A, English Premier League, amongst others have been suspended until further notice.

This development will greatly affect sports betting companies in Nigeria. According to estimates, such companies gain millions of naira every week from the stakes placed by sports lovers who bet on games.

Not only will the betting companies be affected in this case, the suspension of football games by the COVID-19 outbreak will also have an effect on individuals who place bets on games as a side hustle and use the money they win from betting to foot their bills.

• Music Industry

The Nigerian music industry over the past few years has witnessed great turnarounds as artists now perform both within and outside the shores of the country.

For Nigerian music artists who already had international and national concerts fixed, the outbreak will bring about a drop in their earnings as such concerts and performances have to be suspended indefinitely as a result of the pandemic.

• Entrepreneurs

One might think having a business that is being managed from the comfort of your home will bring about some form of immunity where the adverse effects of the COVID-19 outbreak is concerned. However, this might not be the case for most entrepreneurs.

Being an entrepreneur means you have clients/customers who consume your products. For entrepreneurs who make use of various delivery services in delivering goods to their clients, the ‘no movement’ ban placed on citizens will make it quite difficult to meet up with clients’ needs and expectations.

• Manufacturers

The outbreak of the COVID-19 virus has resulted to a disruption in the economy’s supply chain. For Nigerian business owners who are manufacturers, this is a huge challenge as the raw materials needed for production are being affected. 

What this means for Nigerian manufacturers is that access to necessary raw materials will be tampered with which in return will lead to a disruption in the sustenance of production.

The effect of the COVID-19 pandemic is one that will be felt by all Nigerian business owners across the globe in one way or the other. While it might be mild for some, there are others who will find it really devastating.