A new report has revealed that 20% of the full-time workforce in Nigeria lost employment during the 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, Simon Harry, said the report, which assessed the impact of COVID-19 on business enterprises in Nigeria, was based on interviews with about 3,000 businesses from both the formal and informal sectors across major industries of the economy.
According to the report, 81% of enterprises interviewed experienced a decline in revenue and 73% stated that they encountered liquidity challenges due to secondary impacts of COVID-19 in 2020. The median loss in revenue reported was 44 % in comparison to 2019 revenues.
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 include access to credit and capital, high expenditure on utilities, and the lack of an adequate social safety net, especially for informal enterprises, the report has shown.
“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,” Harry said.