Nigeria: Post COVID-19 Unemployment to hit 45% by end of  2020 – LCCI

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By Industrial Digest
“Our findings showed that unemployment rate may surge to 40%- 45% by end-2020 from 23.1% as at Q3-2018,” said Dr. Muda Yusuf,  Director-General , Lagos Chamber of Commerce & Industry (LCCI).
In a report titled ‘LOCKDOWN AND ITS IMPACT ON BUSINESSES: LCCI SURVEY REPORT,’ it 
carried out to determine the impact of the lockdown on businesses, using Lagos State as case study, the Chamber called on the Federal Government to collaborate with the private sector to develop national policy to protect Post- COVID-19 jobs  and income loss. 
 
Said the report: “Unemployment is expected to increase drastically post-lockdown except government takes urgent steps to support business owners towards surviving and ensuring business continuity
 “Additionally, the potential risk of huge job losses will aggravate the magnitude of stagflation (high unemployment + high inflation + low growth) in the economy. This has ripple effect on the Gross Domestic Product (GDP) given that private consumption by households accounts for about 60% of national output.”
 “Majority of the respondents (63%) across Industrial,  agriculture and services sector , plans to downsize operations to minimize losses. This is unsurprising as businesses have not generated income over a 5 weeks period and have lost trillions of naira in profit due to lockdown,” said  the DG.
“Most of the respondents (46%) intend to slash salary and reduce workforce as a joint measure, 24% plan to cut personnel cost only.
“Thirteen percent intends to trim staff strength only while 17% are proposed no salary payment.”
Degree of Impact on Businesses 
A significant fraction of sampled businesses, precisely 81%, were ‘severely’ affected by the lockdown with 17% indicated moderate impact on their business.
Additionally, the lockdown had severe impact on over 50% of businesses in the services sector. The profound impact on services sector is as result of lower demand for services by individual and corporate clients.
During the lockdown, clients prioritized food and essential items ahead of ‘relatively less important’ services, and corporate clients ran skeletal operations, which depressed demand for {non-essential} services.
N500 million Daily Loss
“Majority of the respondents (64%), loss of N500, 000 and below daily during the lockdown while 16% indicated a loss of between N 1million – N2million. About 20% of buisnesses indicated a loss of N2 million and above daily day during the lockdown.”

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