Merit Ibe
With the Coronavirus (Covid -19) outbreak in China, there are indications that the country’s agro-allied, manufacturing sectors and dealers on various products have put on hold the importation of several production raw materials, consumable items coming from China.
The outbreak has reportedly had adverse effects on a number of businesses, especially those who majorly import from China.
Consequently, Nigeria’s Organised Private Sector (OPS), is apprehensive the development could have severe implications for the country’s economy and volume of trade between Nigeria and China this year.
In addition, it was also learnt that China will lose its first position as Nigeria’s biggest import destination amid the outbreak.
As a major buyer of natural resources from the continent, the impact of China’s economic engine raving downward due to the coronavirus could have a deep impact on quite a number of African economies too.
As China struggles with dealing with the virus, the result will not only affect the Chinese economy, the world’s second-largest and main manufacturing hub, but also its trading partners.
The extent to which the outbreak will affect the global economy is still unknown but investors in various markets are beginning to realise that the outbreak has become a global crisis.
This has reduced the country’s manufacturing revenue, which has not just affected China alone, but other countries of the world and has stalled operations due to shortage of raw materials and parts.
It was gathered that the private sector operators are holding strategic trade meetings with the Federal Government, especially with the Minister of Industry, Trade and Investment on imposition of embargo on importation of consumable items from China as part of prevention against the virus outbreak.
In the same vein, OPS is also pressurising the Federal Government to restrict the movement of Nigerians around China Town in Lagos or to temporarily close down the market for the sake of safety of many Nigerians, who always patronise the market to buy goods or consumable items on daily basis.
In separate interviews in Lagos, the former chairman, Lagos Chamber of Commerce and Industry Small and Medium scale Enterprise Group ((LCCI SMEG), Jon Kachikwu, and Nigeria Association of Small and Medium Enterprises (NASME) Executive Secretary, Eke Ubiji, explained that it was time for Nigerians to stop patronising goods or consumable items from China.
Kachikwu said some local manufacturers have put on hold their raw materials import orders from China because of the outbreak, saying this will definitely have adverse effects on consumable items’ manufacturing in the country.
Kachikwu explained that it was time for Nigerian importers to soften their raw materials importation from China.
“Yes, the Covid-19 will definitely affect our agro-allied and manufacturing sectors, especially all those Chinese products coming into Nigeria now, obviously, one has to be careful. In fact, one should even desist from patronising them for now. Consumable items will be affected. Because if a carrier of the virus is in the factory, he’s among the people that produce the products, obviously, it might be contaminated. So, there is need for Nigerians to soften the importation of raw materials and consumable goods from China by putting a hold for now.”
Ubiji said: “As it is now, agro-allied and local manufacturers don’t have choice than to put embargo on their raw materials’ imports, though it could be injurious to their businesses. It will affect employment, revenue, so it’s something we have to look for alternatives. A lot of Nigerians are living in China now.”
Also, some auto spare parts, battery and telecoms parts dealers have confirmed that the prices of their products have gone up. The reason is that these products are scarce in the market. The dealers are scared to visit China out of fear of contracting the virus.
Consequently, the outbreak would stifle economic growth as importation has slowed down and hoarding of materials already in the country has increased. Prices of goods have skyrocketed, non- availability of some products in the market has increased also.
Importers are hoarding, because no one wants to travel or order parts for now from China. And some explained that the epidemic took them by surprise, as most of them had almost sold all their goods before the outbreak. Some complained of running out of stock.
Emma Ojalete, a spare parts dealer at Ladipo Automobile Market said his warehouse is empty now; as he has been unable to travel to China since October to restock his shop. He lamented that the outbreak has distorted his programme as an importer.
Ojalete added that if the problem persists, Nigeria will be in trouble because most of the raw materials, spare parts and some telecom equipment come from China.