A Sense of Urgency: How COVID-19 Has Devastated Economic Activities in Nigeria.......CONT'D

 ...........................the continuation of previous post.

The transportation sector

This sector contributes greatly to Nigeria’s GDP and is the lifeblood of all economic operations. The importance of the sector to the economy of nations cannot be overemphasized, most especially because transportation is an essential service. Moving passengers, goods and services with safety and security is a fundamental objective and should be a top priority for the government (the regulators) to ensure everyone working in the sector and using it in Nigeria are secured and safe.

However, the pandemic has led to creating a wide gap in the transportation sector that needs to be closed. The government is investing heavily in infrastructural development. These investments have to be seen to completion and complemented with the nodal security architecture to ensure, not just free passage, but safety of lives and properties.

Labour force (formal and informal)

Most small businesses in the country are ill-equipped to handle a crisis of this sort, especially as they were predominantly previously focused on survival. Teeming job losses have been announced, and many earning significantly low incomes have been subjected to half salaries and such abnormalities.

Active steps need to be taken for tighter labour laws and actionable job creation projects. Ongoing efforts are appreciated, but if they were insufficient prior to the outbreak of the pandemic, they would need further focused strengthening during this challenging period.

Increased Borrowing and Foreign Reserves Challenges

The harsh realities of the times mean that increased borrowing and reserves depletion is inevitable. We are left with the question of what if? What if things get tougher? What would we have as a nation to fall back on? Saddled with debts and depleted reserves, the country is at a precarious stage. We are grossly unprepared for any minor shake in stability; thus, our continued corporate existence is threatened greatly due to cash-flow constraints.

Tax payments

The pandemic has seen small businesses crashing and the unemployment rate increasing. Nigerians, already famously multi-taxed, will find it difficult to meet those fundamental obligations when juxtaposed with personal survival. This will greatly affect the effort to diversify the economy and widen the tax net and brackets. Businesses and individuals have been observing social distancing and self-isolation due to the pandemic; meeting obligations will be extremely hard.

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