Covid-19: Business Implications and Insight

Business Implications across different industries

Covid-19: Business Implications and Insight

The coronavirus pandemic – now referred to as a black swan event – has caused unprecedented devastation and disruption to businesses. Across the globe, Governments have shut down borders, issued anti-crowd gathering orders, restricted interstate movements and enforced lock-down to inhibit the spread of the virus. The slowdown of economic activities has led to a sharp decline in trade and investment and raises the risk of an unprecedented economic recession.

Nigeria’s 2020 revenue budget is based on an estimated oil production volume of 2.18 million barrel per day at a benchmark price of $57, Exchange rate of N305/$, Projected GDP growth rate of over 2%, and inflation rate of 10.81% – which are now improbable and the change in market conditions has resulted in the downsizing of 2020’s expenditure plan.

Nigeria’s economy would be directly impacted by the oil price shock, COVID-19 pandemic and lockdown across the country. There are additional complications due to the country’s relationship with China as infrastructure financier and key trading partner.

With the traditional workplace deserted and businesses forced to work from homes and alternate locations. Business leaders need to be aware of the business implications of the current happenings in order to develop a definite course of action to successfully navigate the uncertainty and disruptions created by the covid-19 pandemic.

The Economy

Business leaders need to understand the direct impact on the Nigerian economy. The COVID-19 pandemic is affecting the economy in two major fronts:

Nigeria's Revenue Projections

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Changes in Consumer Behaviour

 Demand will be negatively impacted as consumers and businesses would be compelled to cut spending due to increasing uncertainty and declining purchasing power. Private consumption growth would weaken until individuals are able to evaluate their job and financial security. The purchasing power of individuals would also be adversely impacted by the significant decrease in remittance from abroad, as a result of the global scale of the pandemic; Financial reports of 2019 show that remittance to Nigeria from diaspora amounted to over $25 billion.

Top performing organisations often employ tech-savvy administratives and operations staff with higher skill sets. But it can be prohibitive to recruit, train and support full-time managers and administrative staff, particularly for small and medium-sized businesses. Instead, it is more strategic to outsource these needs to a staffing solutions provider like Staffing and Co. with the capabilities and extensive network to match our well-assessed and highly skillfull talents to your organization’s changing staffing needs.

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