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, 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, 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.
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.
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. Those 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.
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