POST COVID-19: ECONOMIC EFFECTS ON SMALL BUSINESSES IN NIGERIA
Abstract
The COVID-19 pandemic, which originated in Wuhan, China, has emerged as a defining global crisis. As governments worldwide strive to combat this deadly virus, uncertainty persists regarding when or how the battle will be won. The pandemic has exposed deficiencies in Nigeria’s adoption of the Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis framework as a nation. While some countries face economic recession, others are rebounding with resilience. In Nigeria, small and medium enterprises (SMEs) face significant challenges, particularly in achieving sustainability and perseverance. These businesses, often operating at subsistence levels with limited capital, are highly vulnerable to disruptions. Crises such as COVID-19, alongside natural disasters, illiquidity, theft, or fire, pose existential threats to SMEs due to their fragile financial structures. The pandemic represents the most significant global calamity to date, profoundly impacting the world economy. While much research has focused on COVID-19’s effects across various sectors, the post-COVID-19 economic impact on SMEs key contributors to Nigeria’s economy remains underexplored. This study aims to assess the current state of SMEs following the pandemic and lockdown, analyze the economic consequences of COVID-19 on these enterprises, and propose strategic recovery measures to foster economic resilience in Nigeria. This paper emphasizes the need for government-led business recovery schemes to support SMEs in expanding and strengthening both existing and new business opportunities as a response to the post-COVID-19 economic recovery. Drawing from a review of relevant literature, this study offers recommendations, including the provision of soft loans and digitalization platforms by the government to drive economic recovery and enhance SME sustainability.
Keywords: SMEs, Economy, SMEDAN, Coronavirus (COVID-19)
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