From Isaac Anumihe, Abuja
The United Nations Development Programme (UNDP) said that 82 per cent of enterprises in Nigeria reported losses in revenue in 2019 during the period of coronavirus pandemic, while the figure for informal enterprises was lower at 79 per cent.
In a survey conducted by UNDP and National Bureau of Statistics (NBS), a slightly higher proportion of enterprises with annual revenues of over N1 million in 2019 reported a decline in revenues compared to those with less than N1 million in revenue.
Similarly, the report said the utilities, financial, insurance, human and health services sectors reported higher proportions of enterprises registering revenue gains since the pandemic, compared to the year before.
‘At the same time, enterprises in the transportation, construction, arts, entertainment, recreation and education sectors reported significantly higher proportions facing a decline in revenues,’ the document revealed.
While there have been promising signs of recovery this year (2021), COVID-19 has had an outsized socio-economic impact on Nigeria.
From disruptions in supply chains, to ongoing supply and demand shocks and a drop in consumer confidence, these challenges are expected to leave lasting impact on the businesses and enterprises that make up the backbone of the economy.
The report entitled “The Impact of COVID-19 on Business Enterprises in Nigeria” also highlights the significant decline in revenue faced by enterprises and establishments across the country as a result of the pandemic.
Close to 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 this increase. Other operational challenges included access to credit and capital, high expenditure on utilities and the lack of an adequate social safetynet, especially for informal enterprises.
‘In addition, the report shows that one in three business enterprises surveyed indicated that they know of businesses that have permanently closed due to operational challenges resulting from the pandemic,’ the report, explained.