Assessment of the Impact of CBN Post COVID-19 Stimulus Packages on the Economic Sustainability of SMEs in the COVID-19 Epic Centres of Nigeria

Authors

  • Johnson Ifeanyi Okoh
  • Ada Mac-Ozigbo
  • Oparaduru John Onyemauche
  • Timothy Ayomitunde Aderemi Bells University of Technology, Ota

Keywords:

CBN; Stimulus Packages; Economic Sustainability; SMEs; COVID-19

Abstract

In this study, efforts have been made to investigate the economic impact of CBN Post COVID-19 stimulus packages on the sustainability of SMEs in Nigeria with focus on three epic centres, Lagos state, Ogun state and FCT. Consequently, 600 SMEs were selected for the survey, in which sufficient information was eventually gathered and utilized from 568 respondents. The economic sustainability of SMEs was measured by SMEs profitability and SMEs stock of goods, in which the impact of CBN Post COVID-19 stimulus packages on these variables were assessed using statistical and econometric techniques respectively. It is instructive to state that the findings in this study are summarized as follows; CBN Post COVID-19 stimulus packages and economic sustainability of SMEs in the three epic centres, Lagos state, Ogun state and FCT have a positive and significant relationship. This implies that economic sustainability of SMEs was significantly enhanced by CBN Post COVID-19 stimulus packages in the selected COVID-19 epic centres in Nigeria. In the light of the above, this study makes the following recommendations for the policymakers in Nigeria.The CBN post COVID-19 stimulus packages targeted at SMEs in COVID-19 epic centres should be sustained, and extended to all parts the federation.  Also, due to the significant volume of profitability recorded by the selected SMEs, the current interest rate and the moratorium on the on CBN intervention should be sustained by the policymakers.

References

Abosede, A.J. & Onakoya, A.B. (2013). Intellectual Entrepreneurship: Theories, Purpose and Challenges. International Journal of Business Administration, Vol. 4, No. 5, PP. 30-37.

Aderemi, T.A., Tolulope, A. C., Adedayo, A. & Arinola, B. L. (2019). Entrepreneurship Financing and Nation Building in Nigeria: Evidence from Agricultural Small and Medium Scale Enterprises. Management Studies and Economic Systems, 4(4), 315-330.

Aderemi, T.A., Adeniran, A. A, Amusa, B.O. & Ebere, C. E. (2020:1). Globalization and Corona Virus (COVID-19) Pandemic; the Vulnerability of Africa is the Opportunity of China. Arabian Journal of Business and Management Review, 9(2), 27-30.

Aderemi, T. A., Lucas, B. O., Okoh, J. I. & Efunbajo, S. A. (2020:2). Impact of Corona Virus (COVID-19) Pandemic on Small and Medium Scale Enterprises (SMEs) in Nigeria: A Critical Case Study. ACTA Universitatis Danubius, 16(4), 251-261.

Akingunola, R. O., Olowofela, E. O., & Yunusa, L. (2018). Impact of Microfinance Banks on Micro and Small Enterprises in Ogun State, Nigeria. Binus Business Review, 9(2), 163- 169.

Ariyo, D. (2005). Small firms are the backbone of the Nigerian economy. Retrieved Bank, pages 1-2; December 2003

Bako, Y. A., Oyegoke, A. A., Idowu, A.F. and Aderemi, T. A. (2021). Microfinance Banks, Small and Medium Scale Enterprises and COVID-19 Pandemic in Nigeria. European Journal of Economics, Law and Politics, 8(2), 1-10.

Bloom, D. E. & Canning, D. (2000). The health and wealth of nations. Science, 287(5456), 1207- 1209.

CBN (2018). SMEs financing in Nigeria. Retrieved on the 27th of January, 2019 from http://www.cenbank.org.

Chen, Jang and Kim (2007). The impact of the SARS outbreak on Taiwanese hotel stock performance: an event-study approach. International Journal of Hospitality Management, 26(1), 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, 31(1), 908-926.

Collins C. N. (2020). Effect of COVID-19 Pandemic on Global Stock Market Values: A Differential Analysis. ACTA Universitatis Danubius. 16(2), 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, 10(1), 23-34,

Meer, J., Miller, D. L. & Rosen, H. S. (2003). Exploring the health–wealth nexus. Journal of health economics, 22(5), 713-730.

NBS (2020). Labour Force Statistics: Unemployment and Underemployment report. Available at www.nigerianstat.gov.ng

Okoh, J. I. (2020). Boosting the Nigerian Economy through Small and Medium Scale Enterprises` Financing. KIU Journal of Social Sciences, 6(3), 343-353.

Olowookere, J. K., Hassan, A. O., Adewole, A. O. and Aderemi, T. A. (2021). Small and Medium Scale Enterprises (SMEs) Financing and Sustainable Economic Growth in Nigeria. The Journal of Accounting and Management, 11(1), 220-228.

Ozili, P & Arun, T. (2020). Spillover of COVID-19: Impact on the global economy. Retrieved from https://mpra.ub.uni-muenchen.de/99850/

Tehseen, S. and Ramayah, T. (2015). Entrepreneurial Competencies and SMEs Business Success: The Contingent Role of External Integration. Mediterranean Journal of Social Sciences, 6(1), 50-61

WHO. (2020). COVID-2019 Situation Reports. Retrieved from https://www.who.int/emergencies/diseases/novel-coronavirus-2019/situation-reports/

Downloads

Published

2022-08-31

Issue

Section

Articles