By Industrial Digest
DESPITE the provision of N1.1 trillion interventions fund by Central Bank of Nigeria (CBN) for local manufacturers including pharmaceutical firms to cushion the effects of COVID-19 lockdowns and an addition N50 billion credit facility for SMEs severely affected by the pandemic, 83 percent of business owners plan to cut down salaries and downsize workforce.
Survey on the covid-19 crisis impact on the Lagos business community, conducted by Lagos Chamber of Commerce and Industry (LCCI), has revealed.
Mrs. Toki Mabogunje, LCCI President, presented the result of the survey today at a press briefing on the State of the Economy.
“The lockdown has significantly destabilized business and economic activities especially in the informal and MSMEs space given their lack of adequate cash buffers to withstand the shock.
♦ Niyi Adebayo, Minister of Industry, Trade and Investment
“Findings from our survey on the covid-19 crisis impact on the Lagos business community revealed that 81 percent of our respondents were ‘severely’ affected by the pandemic with the median daily revenue loss of N500, 000.
“Businesses therefore request adequate stimulus and intervention to preserve investments and save jobs.
“More than half (54%) of business owners want banks to reduce interest rate and give moratorium on loans, 29 percent want reduction in tax liabilities, while 17 percent want waivers on import duties and demurrages,” she said.
She noted that although government have rolled out raft of relief measures to support businesses, “we observe that these packages are tilted more towards formal establishments while micro and small-scale enterprises as well as informal businesses have been largely left out.”
“The outlook for the business environment is bleak. We believe that businesses will continue to grapple with devastating shock of the pandemic amid weak macro fundamentals for some time to come,” she said.