SMEs, private-sector workers bemoan COVID-19 lockdown

Afusat Adeoye and News Agency

Some small businesses and workers in the private sector on Friday expressed concern over the negative impacts of the COVID-19 lockdown which had disrupted socio-economic activities across the country.

A business owner and a major distributor of plastic chairs, Mr Ayooluwa Shoga, in Lagos said that the COVID-19 pandemic had created an unprecedented situation for most businesses.

He said many businesses had been caught unawares, noting that this was so, especially in Nigeria where initial plans and strategies made at the beginning of the year could no longer be followed through.

“The pandemic has caused major disruption of the normal flow of business processes in view of the need for social distancing in order to curb the spread of the virus.

“Regardless of the fact that the lockdown is intended to curb the spread of the virus, miscellaneous expenses are still been incurred, wages still have to be paid, rent has not stopped, interest on a bank loan is still being charged.

“However, little or no revenue is been made at this time. So this is a particularly challenging period for businesses.

“If the virus-induced lockdown tarries further, owners of businesses will be forced to make hard decisions like laying off staff, rolling back on expansion and renegotiating contracts or existing loans,” Shoga said.

Also, Mr Opeyemi Oretuyi, a Media Strategist, said that this was a challenging period for the country, noting that the outbreak was crippling the Nigerian economy as most companies could no longer operate at full capacity.

He said by asking people to stay at home, the government hoped to slow and reverse the rate at which the COVID-19 virus was spreading.

Oretuyi, however, said that the outbreak had not only affected big companies and businesses but also petty traders who hawked on a daily basis to put food on the table for their families.

He urged the Federal Government to provide appropriate support and relief packages for citizens who depended on daily sales to feed their families.

Oretuyi added that aside from the federal government supporting its citizens with palliatives, the Bank of Industry and Central Bank could also assist by reducing interest rates for those that had existing loans.

“It is really a scary situation that no country planned for and as much as the Coronavirus induced lockdown is affecting businesses, I think it is safe to adhere to the directives given by the government so that we can curb the spread of the virus, “he said.

Mrs Aramide Adeshuyan, who works with a private firm, noted that the situation on the ground might make it difficult for companies to pay salaries, noting that no form of profit was being generated due to the virus outbreak and lockdown directives.

She noted that the lockdown directive had made a lot of people resort to panic buying, hence leaving them with little savings in their accounts.

“Most people have spent their money to shop for essential things needed in the house with no hope of getting paid at the end of the month.

“I know the government is trying its best to handle the situation on the ground but at the same time, I think some palliatives should be put in place for citizens.

“Loss of income will be the immediate concern for individuals who have been contributing to household consumption through their entrepreneurial activities,” Adeshuyan said.

Mr Goriola Sodipo, who works with a telecommunication company, said that although the virus outbreak had affected so many businesses, the reverse was the case for cable television stations and tech companies.

“From my own perspective, the lockdown directive has boosted revenue for cable television and providers of online streaming service as more people now rely on electronics for entertainment and church services,” Sodipo said.