Beyond tragic health hazards and consequences, the COVID-19 pandemic has caused growing economic uncertainties and disruptions to the global economy. As COVID-19 cases gradually increase across major cities and states in Nigeria, many sectors have begun to adjust to new realities by providing new services/products or overhauling their operations. Below is a list of some of the severely affected sectors.
Nigerian MSMEs account for over 95% of business activities and contribute more than 50% of GDP; providing 59.6 million jobs. Due to the COVID-19 pandemic, the survival of millions of businesses is threatened with the lockdown measures and the closure of physical locations. Nigeria’s biggest economic sub-sector has taken a huge blow and has become vulnerable; with many MSMEs having to lay off workers and in severe cases shut down their businesses entirely putting pressure on the already rising national unemployment rate of 23.1%.
The COVID-19 pandemic is having a major impact on the aviation industry and has affected passenger traffic, cargo operations, and a halt in operations of major airports around the globe. Given the current situation, the International Air Transport Association (IATA) has projected that Nigeria’s aviation industry would lose at least US$760 million to COVID-19 pandemic. IATA has also stated that the aviation sector in the country risks 91,380 job losses and US$650 million in contribution to Nigeria’s economy, while no fewer than 3.5 million passengers would be lost to the pandemic.
The hospitality and leisure industry has greatly suffered from many of its employees either being laid off or had their hours significantly reduced. The World Travel and Tourism Council has projected a global loss of 75 million jobs and US$2.1 trillion in revenue if the pandemic continues. On the positive side, there is hope that activities will pick up as soon as numbers go down.
The effect of the COVID-19 on the sports and entertainment industry has led to the cancellation and postponement of major sports and entertainment events across the globe. But with the effect of social distance precautionary measures, the event industry will witness a deep decline in revenue generation. This will reduce consumers spending on outside the home but will increase the demand for online media consumption on platforms on digital and streaming platforms such as Netflix and YouTube.
Nigerian cinema's sales have suffered greatly since the onset of the virus outbreak. According to the Cinema Exhibitors Association of Nigeria (CEAN), revenues dropped by 30.65% in the third week of March 2020 and has further declined due to the closure of public spaces. Cancellation of sporting events has put a toll on online betting companies and their customers. This sector worth US$2 billion has suffered an estimated loss of N800 million monthly in revenue.
International Trade and manufacturing activities have greatly been impeded by the COVID-19 pandemic. The movement of goods through importation and exportation across major land, sea, and air borders has been halted; as many countries have issued compulsory lockdowns. This has ultimately led to decreased consumption of manufactured goods with many consumers opting for only necessities. Also, access to raw materials and manufactured goods in Nigeria has been greatly hampered during this period. It is estimated that Nigeria could be losing N2.27 trillion worth of exports during this period.
Conclusion
While we are hopeful for a positive economic outlook and a decrease in the number of cases, individuals and organisations need to consider safe hygiene practices to combat the COVID-19 pandemic.
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