Assessment of COVID-19 Impact on Small and Medium-Sized Enterprises In Nigeria

Assessment of COVID-19 Impact on Small and Medium-Sized Enterprises In Nigeria

INTRODUCTION

The coronavirus pandemic is corona virus disease which has affected many, leading to deaths and have had great impact on Nigeria stock market, these have attracted a lot of scholars to investigate the pandemic. Ozili and Arun (2020) studied the impact of covid-19 on the global economy reveal that covid-19 have huge negative impact on Nigeria stock market in which the virus encouraged social distancing which led to a close of financial markets, corporate offices, businesses and events. The speed in which the virus spread exponentially can result to damage of safety in consumption and investment among investors, consumers and trade partners. Similarly, Chukwuka and Ekeruche (2020) researched on understanding the impact of the COVID-19 outbreak on the Nigerian economy, the study shows Nigeria economy was estimated GDP in 2020 of 2.5% increase, this have been truncated by the pandemic and lead to high increase of the nation’s debt services and revenue ratio at 60% amid the falling prices of oil has been a great source of concern to policy makers as this will make it stiff for the economy to grow. This study is consistent with Oladeinde (2020) which examined Coronavirus and Nigeria Cuts Oil Benchmark to $30, Slashes Capital Budget By 20% which was discovered that Nigeria will make significant change in its 2020 budget to contain the effect of the outbreak of corona virus pandemic on the nation’s economy. The bench mark for crude was placed at $57 per barrel is set to drop down to $30 per barrel, this shows that Nigeria will experience much reduction in the revenue and projects than what was planned. The report of International Monetary Fund (IMF) also show global

growth will fall by 0.5% in 2020 due to the covid-19 pandemic, the effects shows that there will be Stiffness of Demand and supply, sharp decrease in commodity and tourism arrivals. it was predicted that by the first half of the year, the global economy might enter into recessionn, as the result of huge inability to process raw material and respond to high demand of goods and services. Also, Akanni and Gabriel (2020) investigated The Implication of COVID-19 on the Nigerian Economy, it was discovered covid-19 pandemic lead to disruption of activities and economy instability like the united trade and development agency has cost the outbreak of the pandemic to be at about $2trillion. It was seen that factors like social distancing, stay at home, limitation in spending and supply factor which include; cutting or stopping production and output have negative impact on economy growth. These have led to increasing poverty and unemployment rate, the National Bureau of Statistics (NBS) report 2020 placed Nigeria 21 among 181 counties with high unemployment rate of 23.1%, it is estimated that about 87million surviving with less than $2 a day benchmark.

Olufemi and Bolanle (2018) examined the International portfolio diversification in the Nigerian stock market, the study was concluded using vector autoregressive granger causality test for relationship shows there is no relationship between Nigeria stock market and the five other developed countries. But applying the Generalized Method of Moments regression, the result shows during crisis and pre crisis period that developed stock markets have impact on the Nigeria stock market during crisis period. This was further concluded that Nigeria stock market is safe for investors before the covid-19

crisis but this looming pandemic that shock the world economy has made it difficult to invest. Also, Alex et al (2020) used Microscopic Markov chain approach to investigate a mathematical model for the spatiotemporal epidemic spreading of COVID19. It was concluded that at the first half of April 2020, the pandemic will be at its peak, and incubation period of 5.2days in which the condition is still asymptomatic, the beat fit is 2.86days as asymptomatic infection period which later is 3.2days except its mild symptoms in young people, The fatality rate was fixes at 42% of ICU patient, which from ICU to death is estimated to 7 days and those recovering from ICU spend 10days. Ndedi (2020) studied the aftermath of the Coronavirus in Selected African Economies. The study concludes that countries like Nigeria and Angola are going to feel the pain as they majorly depend on crude oil to have a stable economy and manufacturers of good and services, importation of foods have been tightened. It will further lead to African strong economic countries like Nigeria, South Africa, Angola, Egypt and Algeria will experience fiscal pressure due to sharp drop of commodity price. Lastly, John (2020) examined COVID-19 Pandemic, a War to be won and understanding its Economic Implications for Africa. The study concludes that the International Monetary Fund has called on creditors of all official bilateral to suspend all debt payment as forbearance is requested by International Development Association Countries to savage the economy instability, and further added that there will be substantial cost on the economy as the pandemic continue to spread which require strong will and action by the people and government to continue a war against it. The full impact of covid-19 on the African economy cannot be determined now, but there will be more insight into it as situation unfolds.

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