Analysts have asked Nigeria’s federal and state governments to save millions of small businesses in their domains from crumpling after the coronavirus pandemic.
“The Federal Government must do something immediately because a lot of MSMEs will inevitably collapse and die after the coronavirus pandemic,” Ike Ibeabuchi, CEO of MD Services Limited, said.
“If you do not want uncontrollable job losses, then give MSMEs low-cost, long-term funds. This is something other countries have seen doing,” he warned.
Coronavirus, also known as Covid-19, has killed tens of thousands of people across the world and disrupted social and economic lives of the people.
The United States has sought additional $250 billion to complement $350 billion earlier budgeted as relief fund for small businesses in the country.
The Nigerian government has got a loan approval from the International Monetary Fund for $3.4 billion.
Analysts are asking the government to ensure that part of the funds go to the MSMEs who have created more than half of jobs in the economy.
A national survey of conducted by NBS and Small and SMEDAN in 2017 said the number of MSMEs has risen from 37 million to 41.5 million MSMEs. They contribute 50 percent to the GDP and 83 percent of jobs in the economy, the survey said.
Femi Egbesola, national president, Association of Small Business Owners of Nigeria (ASBON), said coronavirus was having a negative impact on the operations of SMEs in the country as some were cutting down production.
“I have had several calls from our members that are into the manufacturing of pure water,” he said.
“They can no longer get enough supply of polyethylene for making sachet water and bottles because they are imported from China,” he said, while urging the government to marshal out a plan for MSMEs within the pandemic period.
He predicted that lots of SMEs would close shop if the spread of the outbreak was not controlled within the shortest possible time.
Segun Agboade, president and chairman of council, Nigerian Association of Small and Medium Enterprises (NASME), said the situation was becoming unbearable and government must immediately step in.