By Umar Ismaeel
There is no doubt that the pandemic, which is the biggest security threat the world has faced since the turn of the millennium, is hitting the global community so hard and our dear nation is not left out. The virus that broke out in China as far back as 17th November, 2019 and declared pandemic by WHO on the 11th March, 2020 has affected over 205 countries of the world, dealing with each nation in their particular ways. There have been over 5.4 million confirmed cases across the globe leaving over 346,000 to the cold hands of death. So I wonder if a virus could make human beings and developed nations run around, what do you think it will do to businesses, especially in our sick economy here at home. You can sit back and enjoy as we peruse its effects on Nigerian businesses.
The pandemic has affected economies of countries globally not leaving the world giants like America, China, UK and the rest out. It has also made most nations to draft economic recovery plans, including Nigeria. As everyone is particular about securing lives, we should also be in securing the hope and fate of businesses.
Since the record of the index case here in Nigeria, many businesses have suffered in so many ways. The new government policies in combatting the virus has also not been favourable to both small scale and large scale businesses, such as restriction of buying and selling to only foods and essentials –though the word essential is vague. The curfews by some states and lockdowns have crippled many businesses from South to North and from East to the Western part of the nation.
Businesses are affected in so many ways. One, the border closure ordered by the government has affected many businesses that rely solely on importation. They could not bring in new products from abroad and this has created scarcity in the market with the return result of inflation and hike in price. So a lot of people could not afford the goods and services as they also make less during this trying time, which has automatically affected their spending power.
Two, the curfews, like we have in Oyo and the lockdowns in states like Lagos and Ogun has affected many businesses negatively, even private schools are not left out of the rippled effect. Potential buyer of goods and services have been sealed up in their houses. In states that they could come out, people could not afford them as they also make less from staying home, which leaves perishable goods perished and automatically leaves business owners in debt and deficit –especially those that are not selling foods and essentials.
What should now be the solution and way-out to all these mess, so that businesses could thrive again? At least if profits are not made, losses should not be incurred.
One, business owners should take their businesses online and also incorporate delivery package. The world has been blessed with technology and many business moguls and tycoons make most of their dealings online –Ali Baba is a good example. Any business in this current world order which lacks digital marketing will suffer a lot, especially during this trying time. This is the period for business owners to take advantage of digital marketing and creativity as many people this time are living online. People coming online to consume contents have quadrupled. So this is the time for business owners to force what they do and sell on people’s screens. Most people could not go out to get what they need due to lack of preventive materials and out of fear of exposure to the virus, but they are willing to buy if it can be brought to their door steps. All businesses have to do is just to equip their post men and leverage on digital platforms.
Two, the government should improve their stimulus package. Recently the federal government initiated a fiscal stimulus package to improve the economy and our financial dealings. We should follow the steps of countries like America, who recently proposed $2 trillion as stimulus package, which includes loans for all scales of business. This will go a long way in reducing the negative effects Covid-19 has on businesses. Also on the part of the government, tax should be reduced to the bearable minimum, so as to prevent businesses from shutting down.
Furthermore, businesses that rely on sourcing for raw materials abroad can turn their searchlight to local markets so as to keep their businesses running. Often times, local sourcing is cheaper.
The epidemic is just here for a while, the world has seen worse than these and we will all overcome it together. It is a fact that businesses cannot run as they do pre-Covid-19 but if these little pieces of advice are taken, the effects can be ameliorated.