The impact of the COVID-19 lockdown on many businesses in Nigeria, shows that the country’s businesses environment has become unhealthy, more volatile and highly uncertain, says Dr. Ebhohimen Pascal, an economic consultant.
While appearing on Arise TV at the weekend, Dr. Pascal who is the Director, Claims Resolution department at the Nigeria Deposit Insurance Corporation, explained that the level of environmental turbulence if not properly understood and the businesses fail to respond adequately would affect the stability and growth of the economic system.
He said the overall impact of malfunctioning businesses amidst disruptions occasioned by unresolved Covid-19 pandemic on the national economy is self-evident and unimaginable.
“Many businesses were shut down as a result of the lockdown restrictions. Unexpectedly, the crisis came unprecedented and so they did not plan ahead for business continuity. And had no contingency plan to respond to the crisis.
“So post lockdown, many would be preoccupied developing such plans. Tourism & Aviation, hospitality, entertainment, real estate, etc are worse hit. Staff need not resume yet because of restrictions in respect of interstate travels and international trade and commerce, apart from lockdown in other jurisdictions.”
Dr. Pascal said essential services businesses like telecom, pharmaceuticals, hospitals, banking, electricity generation, distribution and transmission are also affected because of systems interdependencies and supply chain challenges they could face.
“Within this period of lockdown and even now restrictions are relaxed, businesses are beginning to identify and manage the risks they are exposed before they put together a response plan or business continuity plan for a successful turnaround. So businesses would still be operating at a very low ebb as to make significant in on the economy now or short to medium term as long as the war lasts.
Dr. Pascal advised businesses to put together a resilient strategic plan post Covid-19 pandemic, adding that government at all levels must look inward and diversify the economy by focusing national industrial and commercial policies on exportable products and services in line with Nigeria’s development and growth recovery plans.