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Nigeria Loses One-Fifth Of It’s Work Force In 2020 To COVID-19

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The United Nations Development Programme (UNDP) and National Bureau of Statistics, (NBS) have issued a report which stated that nothing less than 20% of the workforce in Nigeria lost their employment during the COVID-19 pandemic in 2020.

The report, “The Impact of COVID-19 on Business Enterprises in Nigeria”,  was based on interviews conducted with almost 3,000 businesses from all sectors across major industries of the economy.

According to Vanguard, it evaluated the problem caused by the COVID-19 virus on business enterprises in the country.

The report partly read, “While there have been promising signs of recovery this year, COVID-19 has had an outsized socio-economic impact on Nigeria.

“From disruptions in supply chains to ongoing supply and demand shocks and a drop in consumer confidence, these challenges are expected to leave a lasting impact on the businesses and enterprises that make up the backbone of the economy.”

The pandemic has caused a significant drop in revenue for businesses and establishments.

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According to the report, 81% of businesses surveyed reported a drop in revenue, with 73% reporting liquidity issues as a result of the pandemic.

The median revenue loss remained unchanged at 44% in comparison to 2019 revenues, while about 60% of the businesses studied saw an increase in operational costs.

The cost of raw materials and logistics are the two biggest contributors to the increase.

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According to the report, one out of every three businesses surveyed indicated that some had permanently closed due to pandemic-related operational challenges.

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