Impact of Corona Virus (COVID-19) Pandemic on Small and Medium Scale Enterprises (SMEs) in Nigeria: A Critical Case Study
The aim of this study is to investigate the impact of COVID-19 pandemic on selected small and medium enterprises in Nigeria, with a view to ascertaining the impact of lockdown on SMEs engaging in three essentials- food and consumables, pharmaceuticals, oil and gas in Sango-Ota industrial area of Ogun state, Nigeria. Data were collected with the administration of structured set of questionnaire on 100 SMEs which were selected purposively. Findings from the analysis showed that the enterprises experienced moderate reduction in production and sales during the lockdown. However, the surveyed enterprises experienced a spike in reduction of contracts and deliveries. In view of the above, the study makes the following recommendations for the policy makers and all stakeholders in SMEs in Nigeria that: pandemic is still ongoing, a spike reduction in operations and sales of SMEs will metamorphose into cash-trap. This would increase the vulnerability of SMEs in Nigeria to other external shocks. Therefore, the government should set aside emergency fund targeting SMEs in the country. Deferment of taxes or waiver of taxes, lower of interest rate could also be embarked on by the appropriate policy makers to make SMEs remain afloat during and after COVID-19 pandemic.
Ariyo, D. (2005). Small firms are the backbone of the Nigerian economy. Retrieved Bank, pages 1-2; December 2003
Bloom, D. E. & Canning, D. (2000). The health and wealth of nations. Science, 287(5456), pp. oo12071209.
CBN (2018). SMEs financing in Nigeria. Retrieved on the 27th of January, 2019 from http://www.cenbank.org.
Chen, M. H.; Jang, S. S. & Kim, W. G. (2007). The impact of the SARS outbreak on Taiwanese hotel stock performance: an event-study approach. International Journal of Hospitality Management, Vol. 26, No. 1, PP. 200-212.
Chen, M. P.; Lee, C. C.; Lin, Y. H. & Chen, W. Y. (2018). Did the SARS epidemic weaken the integration of Asian stock markets? Evidence from smooth time-varying cointegration analysis. Economic research-Ekonomska istraživanja, Vol. 31, No. 1, PP. 908-926.
Collins C. N. (2020). Effect of COVID-19 Pandemic on Global Stock Market Values: A Differential Analysis. ACTA Universitatis Danubius. Vol. 16, No. 2, PP. 261-275
Ganale, M. A. & Zafar, F. (2020). Impact of COVID-19 (Coronavirus) on Small and Medium Enterprises (SMEs) in Pakistan. Small and Medium Enterprises Development Authority (SMEDA). SMEDA Research Journal View project
Gbandi, E. C. and Amissah, G. (2014) Financing Options for Small and Medium Enterprises (SMEs) in Nigeria European Scientific Journal, Vol. 10, No. 1, PP. 23-34.
Kayadibi, S., Polat, R., &Fidan, Y. (2013). Small and Medium-Sized Business in Malaysian Economy: Case of Turkish Entrepreneurs in Kuala Lumpur. Business Economy, Vol. 31, PP. 265-281.
Khalique, M., Isa, A. H. B. M., Shaari, N., Abdul, J., & Ageel, A. (2011). Challenges Faced by the Small and Medium Enterprises (SMEs) in Malaysia: An Intellectual Capital Perspective. International Journal of Current Research, Vol. 3, No. 6, PP. 398-401.
Meer, J.; Miller, D. L. & Rosen, H. S. (2003). Exploring the health–wealth nexus. Journal of health economics, Vol. 22, No. 5, PP. 713-730.
Dang, T. L. & Nguyen, T. M. H. (2020). Liquidity risk and stock performance during the financial crisis. Research in International Business and Finance, Vol. 52, PP. 101-165, retrieved from https://doi.org/10.1016/j.ribaf.2019.101165, date: 01.20.2020.
Tehseen, S. and Ramayah, T. (2015). Entrepreneurial Competencies and SMEs Business Success: The Contingent Role of External Integration. Mediterranean Journal of Social Sciences, Vol. 6, No.1, PP. 50-61
WHO. (2020). COVID-2019 Situation Reports. Retrieved from https://www.who.int/emergencies/diseases/novel-coronavirus-2019/situation-reports/
Copyright (c) 2020 Timothy Ayomitunde Aderemi
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.