Economy & Politics
Covid-19: SBM Intel lists out industries that may be out of business post Coronavirus
Businesses have been classified into low risk, medium risk, and high risk. Those with high risk could be out of business.
Nigerian Based market research organisation, SBM Intelligence published a list of industries that will be positively and negatively impacted by the Covid-19 pandemic. This is part of the risk-based firm’s series of discussions on the impact of Covid-19 on the Nigerian Economy.
In a published report seen by Nairametrics, the company takes a look at Nigeria in the age of the coronavirus. The pandemic which broke out in Wuhan China in December 2019 has killed over a hundred thousand people across the world, with over three million people infected as well as about a million recoveries.
With its attendant devastating effects, it has impacted the global oil economy which makes up 7% percent of Nigeria’s GDP, and with the recent price war between Saudi Arabia and Russia, it has sent shocks to the Nigerian economy as oil sold below the $30 mark. held a Seminar during the week on the theme.
READ MORE: SBM Jollof Index reveals how Covid-19 has forced food items to skyrocket
Industry Impact
In a look at how the various sectors of the economy will fare, the report noted that bakery, beverages, chemicals, healthcare products, pharmaceuticals, telecommunications sectors face low exposure, compared with restaurant, clothing and textile, education, electricity, agriculture, real estate, hospitality as well as tobacco sectors that it classifies as medium risk.
Automobile, banking and finance, entertainment, leisure oil, and gas as well as trading and transportation were identified as high exposure and are more likely to experience disruption compared with the other sectors.
How the industries were chosen
According to SBM intelligence, between Thursday, 16 April 2020 and Sunday, 19 April, it conducted a series of phone interviews with practitioners in various industries to ascertain how their industries were faring as a result of the lockdowns in federal government imposed lockdowns in Abuja, Lagos State, and Ogun State; as well as the state government lockdowns in various other states. Their questions sought to determine the direction the respondents felt their industries would go after the pandemic was over.
READ ALSO: It costs more to ship through Apapa port than Ghana’s Tema port, others –SBM
A chart of the risks to various industries is presented below:
Nigerian Industries Exposure to Covid-19
What this means: As the Nigerian economy continues to reel from the impact of the economic lockdowns, businesses across the country are jostling to limit their financial and business exposures. Most organisations have rolled out their business continuity plans designed to ensure that their business operations are not severely impacted. Nevertheless, there will still be winners and losers with varying degrees of exposures to the pandemic.
For businesses considered highly exposed they will have to review their business model and deploy painful reorganizations if they are to remain in business post-Covid-19. Thos on medium risk exposures will also have to adapt their models to reduce the impact while those on low-risk exposure need to consolidate on their operations and also taking full advantage of the opportunities being offered.
Economy & Politics
Buhari in crucial meeting with Obasanjo, other former heads of state
President Buhari is presiding over a National Security Council meeting with some former heads of state and some security chiefs.
President Muhammadu Buhari is currently presiding over a National Security Council meeting with some former heads of state and some security chiefs.
READ: Obasanjo opens garment factory, competes with Nike Art Gallery, Sam & Sara
Although the agenda of the meeting is not made public, issues bothering on the current security situation in the country are believed to top the agenda. This follows the outbreak of violence across the country during the protest against police brutality and extra-judicial killings, which has led to the loss of lives and destruction of public assets and private properties.
READ: Update: Buhari seeks power to freeze accounts, clamp down on money launderers
According to media reports, the meeting which is coordinated from the Council Chamber of the Presidential Villa, Abuja, has in virtual attendance General Yakubu Gowon (rtd.), former President Olusegun Obasanjo, Gen Abdulsalami Abubakar (rtd.), former President Goodluck Jonathan and former head of interim national government, Chief Ernest Shonekan.
READ: #EndSARS: Feminist Coalition raise Cryptos worth $126,000
Others who are physically present at the council chambers are Vice President Yemi Osinbajo; National Security Adviser, Major General Babagana Monguno (rtd.); Chief of Defence Staff, General Gabriel Olanisakin; Inspector-General of Police, Mohammed Adamu; Director-General, Department of State Services, Yusuf Bichi; and Director-General, National Intelligence Agency, Ahmed Rufai, among others are attending with the President.
READ: #EndSARS: Buhari holds National Security Council meeting with Osinbajo, IGP, others
This meeting is coming a day after President Buhari’s national broadcast on the security situation in the country calling for an end to the #EndSARS protests as their voices have been loudly heard.
Explore Data on the Nairametrics Research Website
Details later…
Economy & Politics
Senatorial, State House of Assembly bye-elections postponed – INEC
Senatorial and State House of Assembly bye-elections slated to hold on October 31 in 11 states have been postponed by INEC.
The 6 Senatorial and 9 State House of Assembly bye-elections slated to hold on October 31 in 11 states of the Federation has been postponed by the Independent National Electoral Commission (INEC). The vacancies were as a result of death and resignation of previous members.
According to the statement issued by its National Commissioner & Chairman, Information and Voter Education, Festus Okoye Esq., INEC said the decision was taken after meeting with the 37 Resident Electoral Commissioners (RECs) on Thursday.
Breaking News: #INEC Postpones Bye Elections in 6 Senatorial Districts, 9 State Constituencies. pic.twitter.com/RWiUomBsC6
— INEC Nigeria (@inecnigeria) October 22, 2020
Though the commission did not categorically state the reason for the postponement, feelers are that it may not be unconnected with the raging #EndSARS protests across the nation.
Details shortly…
Economy & Politics
Some Nigerians mistook promptness of FG response as sign of weakness – Buhari
President Buhari has said that FG’s promptness to consent to the demands of the protesters was taken as a sign of weakness.
President Muhammadu Buhari has pointed out that the promptness with which the Federal Government acted in meeting the demands of the #EndSARS protesters seemed to have been misconstrued as a sign of weakness and twisted by some for their selfish unpatriotic interests.
This was disclosed by the president in his national broadcast on Thursday, October 22, 2020, on the current widespread violence which has engulfed the country following the protest against police brutality and extrajudicial killings.
The president said that the government listened to the protesters and after evaluating their five-point demands, they were accepted and some of them implemented, which includes the disbandment of SARS.
In his address to Nigerians, President Buhari said, “As a democratic government, we listened to, and carefully evaluated the five-point demands of the protesters. And, having accepted them, we immediately scrapped SARS and put measures in place to address the other demands of our youth.
“On approving the termination of SARS, I already made it clear that it was in line with our commitment to the implementation of extensive Police reforms.
“Sadly, the promptness with which we have acted seemed to have been misconstrued as a sign of weakness and twisted by some for their selfish unpatriotic interests.
The president said the actions of these elements has caused serious violence which has led to the loss of human lives, attack on correctional facilities, destruction and vandalization of public and private properties, attack on the palace of Oba of Lagos, invasion of International Airport and so on.
While acknowledging that the choice to demonstrate peacefully is a fundamental right of every citizen as enshrined in the constitution, the president pointed out that this right to protest also imposes on the demonstrators the responsibility to respect the rights of other citizens and the necessity to operate within the law.
Details later…
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