A report has revealed that twenty percent of the full-time workforce in Nigeria lost employment during the effect COVID-19 pandemic in 2020.
This was revealed in a report titled: “The Impact of COVID-19 on Business Enterprises in Nigeria”, released on Tuesday by the United Nations Development Programme (UNDP) and the National Bureau of Statistics (NBS).
The Statistician-General of the Federation, Dr Simon Harry, said the report assessed the impact of COVID-19 on business enterprises in Nigeria.
He added that it was based on interviews with about 3,000 businesses from both the formal and informal sectors across major industries of the economy.
The report showed that 81 % of enterprises interviewed experienced a decline in revenue and 73 per cent stated that they faced liquidity challenges due to secondary impacts of COVID-19 in 2020. The median loss in revenue reported was 44 % in comparison to 2019 revenues.
The report also showed that close to 60 % of enterprises surveyed experienced an increase in operational costs with the price of raw materials and logistics being the top two contributors to this increase.
Other operational challenges included access to credit and capital, high expenditure on utilities, and the lack of an adequate social safety net, especially for informal enterprises.
“As the economy begins to show signs of gradual growth, this report contains important information that can guide policymakers in their interventions to mitigate the negative socioeconomic impacts of COVID-19 in the country,” Dr Harry said.
He further said although the report findings highlighted the complex challenges the economy continued to face because of COVID-19, it also told a powerful story of innovation, resilience, and strength as Nigerian businesses leveraged their ingenuity to adjust to this new normal.