Effect of Covid-19 Pandemic on Nigerian Small and Medium Scale Enterprises

Abstract

Covid-19 that emerged from a Wuhan city in China, have gradually developed to pandemic proportion that keeps ravaging national and global economies. No nation is insulated from its devastating impact that compelled national governments to come up with recovering packages to salvage businesses from total collapse. Small and Medium Scale Enterprises (SMSEs) are largest employers of labour in developing economies like Nigeria. Therefore, this study attempted to assess effects of the COVID-19 pandemic on SMSES in Nigeria. The research used secondary qualitative methods of data collection - published articles in reputable journals (online and offline), government gazettes, data from non-governmental and inter-governmental bodies. Content analysis was adopted. The study discovered that Covid-19 has severely impacted on SMSEs with consequent job loss, declining income, impoverishment of the working class, low production and sales as well as increased rates of unemployment and poverty.  Based on the research findings, the researchers recommended adoption of E-Business model that would eliminate the barriers created by Covid-19 lockdown/social distances. Government should also design deliberate policies to monitor and evaluate the implementation of all social investment funds targeted at cushioning the effects of the covid-19 pandemic in Nigeria. It is necessary that government makes sure that targeted groups get access to these loans; removal of all form of taxes to SMEs, this could be in form of tax rebates, tax holidays or tax exemptions for these SMEs.

Keywords: Covid-19, Pandemic, Small and Medium Scale, Enterprises