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Coronavirus

Businesses most affected by COVID-19 outbreak

COVID-19 pandemic is biting hard on businesses like Aviation, Hospitality, Cinema among others

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The COVID-19 outbreak, which has been spreading rapidly, has come with a devastating global impact. This coronavirus pandemic has become a global threat, increasing from 197,590 infections and 7,954 deaths in March 17, 2020, to 2,350,075 infections and 161,270 deaths as at April 19, 2020—barely a month.

The bid to contain the spread of the coronavirus disease has led to lockdowns and travel restrictions across countries globally, with Nigeria also being affected.

The lockdown directives have led to the shutdown of many businesses, especially those that cannot be performed from homes. Only businesses proffering essential services have been exempted from the lockdown directive; hence, the nation’s economy is adversely affected.

While speaking yesterday during a live webinar presentation organized by FCMB Plc on the topic, “COVID-19 and Economic Downturn Response,” Nairametrics’ Founder, Ugochukwu Obi-Chukwu, listed a couple of sectors that will be negatively impacted by the outbreak.

READ MORE: COVID-19: Total lockdown imminent as Lagos fears confirmed cases could hit 39,000

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Some of those listed sectors, which are very critical to the economy, include:

Tourism and Aviation: This has been one of the hardest-hit sectors, as the lockdown and travel restrictions have caused a huge slump in demand among travellers. Most of the local and foreign airlines have suspended operations, with all the airports under a shutdown order by the Federal Government. As of March, the International Air Transport Association (IATA) had reported an estimated revenue loss of $252 billion in the sector globally.

Hospitality Industry: It is no secret that the hospitality industry is one of the sectors that have been hit the hardest by the COVID-19 pandemic, with many of the employees either out of work or losing hours due to travel restrictions, the shutdown of businesses, and social distancing. The hotels have been experiencing very low patronage.

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Cinemas and Entertainment: The film and entertainment industry, in general, has experienced substantial negative impact; movie theatres have been shut down, art exhibitions, movie premiers and musical concerts have either been cancelled or postponed. In fact, multi-billion naira worth of deals has been lost in the sector.

READ MORE: Nigerian cinemas count loses in Q1 2020, amid COVID-19 lockdown

Oil and Gas Industry: The sector has been badly hit by the pandemic, since the lockdown and travel restrictions have led to a huge drop in oil demand and crash in crude oil prices globally. Even the intervention of OPEC+ and top oil-producing countries through output cut has still not impacted on oil prices or stabilized the market.

Real Estate and Construction: With the drop in income and loss of jobs, very little interest in acquiring houses will be shown by property buyers. Also, the movement restrictions and social distancing will adversely affect construction activities nationwide with organizations and individuals trying to apply safety measures.

Trade: This will be negatively impacted, owing to the shutdown of factories, reduced access to raw materials and commodities due to supply chain challenges. Trillions of naira worth of trade for both imports and exports will be lost due to the lockdowns, seaports and border closure. As China, is crucial to global trade with its current integration in the global value chain and main supplier and buyers of intermediate inputs, the disruptions it is dealing with due to the disease will affect trade.

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Manufacturing: The disease will impact negatively on the manufacturing sector, as production lines and factories will be shut down due to the lockdown and low consumer purchases.

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Start-ups and Small businesses: entrepreneurs are forced to take drastic steps in order to remain in business. The preventive measures taken by the government have left startups as one of the most vulnerable.

Consultants and Services: Consultants and service providers will be negatively affected, as the drop in revenue by companies and even government institutions due to the economic meltdown will lead to tightening of budgets which will negatively affect the consultants.

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

3 Comments

3 Comments

  1. Enaholo Okoboh

    April 20, 2020 at 6:50 am

    Now that we have seen business affected adversely, can you give us some kind of insights for businesses/industries experiencing positive effects if there are? and a bit of prognosis on business after COVID-19

  2. Iniobong

    April 20, 2020 at 7:56 pm

    I think that tech-enabled companies are likely to witness increased demand from individuals, businesses and even governments to bridge existing gaps. For sectors like education, having online educational institutions where one can get the require educational services online . Fintech is also another sector that is flourishing and will do great after this. Drone delivery another area to look at.

  3. Adebesin adedamola

    May 25, 2020 at 9:32 am

    Visual art has experience negative impact on this covid 19.most art galleries are not fully operating due to low turn on art lover and exhibitions. I appeal to Government and Organizations to help with grants or load to ease the creativity industry to keep alive still the storm is over.

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Coronavirus

Covid-19: WHO, partners to provide access to 15-minute tests in 133 countries

Some nonprofit organizations in collaboration with WHO are set to make 120 million antigen tests accessible to low and middle-income countries.

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Dr Tedros Adhanom, Head of the World health organization (WHO), COVID-19

The World Health Organization (WHO) and some nonprofit organizations have agreed to help provide access to 120 million antigen tests to 133 low and middle-income countries that can provide results in 15-30 minutes rather than hours or days.

This will enable expansion of testing, particularly in countries that do not have extensive laboratory facilities or trained health workers to implement molecular polymerase chain reactions (PCR) tests.

Apart from the WHO, other organizations involved in this milestone agreement announced by the Access to Covid-19 Tools (ACT) Accelerator include the Bills & Melinda Foundation, the African Centres for Disease Control and Prevention, the Clinton Health Access Initiative (CHAI), the Foundation for Innovative New Diagnostics (FIND) and the Global Fund, Unitaid.

READ: GTBank Releases Q1 2020 Unaudited Results, Reports Profit Before Tax of ₦58.2 Billion

The tests which are developed by Abbott Laboratories and SD Biosensor are highly portable, reliable, and easy to administer, making testing possible in near-person, decentralized healthcare settings.

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Both companies’ tests are faster and cheaper than laboratory-based tests, enabling countries to increase the pace of testing, tracing and treating people for COVID-19 at the point of care particularly in areas with under-resourced health systems. The 2 firms are reserving a fifth of their production to countries most in need. The distribution will begin in October.

The agreements between the Bill & Melinda Gates Foundation and the test manufacturers, Abbott and SD Biosensor, make available innovative tests that will cost $5 each or less.

READ: Sim Shagaya’s Edtech startup secures $3.1 million Seed Funding

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The Global Fund is also participating; though further funding is needed. They are committing an initial $50 million to enable countries to purchase the new tests, with the first orders expected to be placed this week.

The WHO Director-General, Dr Tedros Adhanom Ghebreyesus, said, “High-quality rapid tests show us where the virus is hiding, which is key to quickly tracing and isolating contacts and breaking the chains of transmission. The tests are a critical tool for governments as they look to reopen economies and ultimately save both lives and livelihoods.’’

Explore the Nairametrics Research Website for Economic and Financial Data 

He said the quicker the coronavirus disease is diagnosed, the faster action can be taken to isolate and treat those with the virus and trace their contacts. The tests are a critical tool for governments as they look to reopen economies and ultimately save both lives and livelihoods.

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Coronavirus

COVID-19 Update in Nigeria

On the 28th of September 2020, 136 new confirmed cases and 3 deaths were recorded in Nigeria

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The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 58,460 confirmed cases.

On the 28th of September 2020, 136 new confirmed cases and 3 deaths were recorded in Nigeria, having carried out a total daily test of 1,450 samples across the country.

To date, 58,460 cases have been confirmed, 49,895 cases have been discharged and 1,111 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 507,006  tests have been carried out as of September 28th, 2020 compared to 505,556 tests a day earlier.

COVID-19 Case Updates- 28th September 2020,

  • Total Number of Cases – 58,460
  • Total Number Discharged – 49,895
  • Total Deaths – 1,111
  • Total Tests Carried out – 507,006

According to the NCDC, the 136 new cases were reported from 13 states- Lagos (71), Rivers (23), Plateau (12), Adamawa (6), Oyo (6), Kaduna (5), Abia (3), FCT (3), Katsina (2), Kwara (2), Bauchi (1), Borno (1), Edo (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 19,310, followed by Abuja (5,677), Plateau (3,400), Oyo (3,260), Edo (2,625), Kaduna (2,402), Rivers (2,370), Ogun (1,836), Delta (1,802), Kano (1,737), Ondo (1,631), Enugu (1,289), Ebonyi (1,040), Kwara (1,034), Abia (894), Gombe (864). Katsina (859), Osun (827),  Borno (742), and Bauchi (699).

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Imo State has recorded 568 cases, Benue (481), Nasarawa (449), Bayelsa (398),  Jigawa (325), Ekiti (321), Akwa Ibom (288), Niger (259), Adamawa (240), Anambra (237), Sokoto (162), Taraba (95), Kebbi (93), Cross River (87), Zamfara (78), Yobe (76), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

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The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

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Coronavirus

Lagos launches N5 billion support fund for 2,000 low-cost private schools

The Governor said the facility will benefit low-cost schools with amounts ranging from N500,000 to N5 million.

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Lagos State government has launched a N5billion support fund to help reduce the impact of Coronavirus pandemic on low-cost private schools in the state.

This was disclosed by the Governor of the state, Babajide Sanwo-Olu via his Twitter handle on Friday.

READ: N4.16 billion unpaid lottery revenue recovered by EFCC

According to him, the educational sector is one of those severely impacted by the pandemic, with schools and vocational learning-centres shut since March.

He said, “With access to funding for privately owned schools and vocational training centres in the state, we are confident that this programme, under the partnership between First Bank Nigeria and Lagos State Education Trust Fund (LSETF) will help accelerate a sustainable return to learning and skills acquisition.”

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READ: FG releases new details on MSMEs support scheme, budgets N200 billion for loans

He explained that the facility will benefit 2,000 low-cost schools with amounts ranging from N500,000 to N5 million.

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“As a responsible Government, we are obligated to provide interventions that would enable learners in schools study in line with the new normal,” the Governor Sanwo-Olu added.

The Chief Executive Officer, First Bank Nigeria, Dr Adesola Adeduntan, said “With this partnership, we are sure that registered educational institutions in Lagos State will have access to funds at subsidised interest rates to meet their needs as they reopen at this auspicious time.”

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