Many businesses have taken a lot of heat since the index case of the novel coronavirus broke in the country even as the general public including the organised private sector, labour leaders express fears that the raging pandemic may bring the already fragile economy on its knees, report IBRAHIM APEKHADE YUSUF, TONY AKOWE and MEDINAT KANABE.These are certainly uncertain times for businesses nationwide. With partial and total lockdown being enforced in some parts of the country as a result of the rising coronavirus pandemic, for many businesses hitherto struggling to make ends meet as well as individuals barely scrapping by, suffering may become their metaphor of existence, if the rampaging COVID-19 scourge is not reined in on time.Speaking with a cross-section of Nigerians from all walks of life, they recounted tales of woes since the aftermath of the dreaded coronavirus.Tales of woesSpeaking with our correspondent in Lagos, a construction worker, who simply gave his name as Adeosun, said his company, currently doing some road contract assignments for Lagos State government asked all the staff on its employ to sit at home by the end of February and barely managed to pay them for the month and deferred subsequent monthly payments till further notice.Adeosun, who said he doesnt begrudge his employers in anyway, said as much as he is not happy with the development there is absolutely nothing he can do about it.I have resigned to fate and only hope and pray that we get out of this health emergency that is bound to lead to disastrous consequence, economically and otherwise if not contained, he lamented.While sharing her own experience, Mercy Okafor (not real name), who works in one of the old generation banks lamented that few of the staff at her branch office were asked to proceed on forced working leaves with little or no incentives.We received a memo some weeks ago that some of us should proceed on working leaves as directed by the head office with little or no incentives whatsoever. We didnt have any choice in the matter and no second appeal. I had other plans for my annual leave but that has been abruptly aborted now, said the distraught Mercy.In a monitored TV programme in Lagos at the weekend, Tope Kolade Fasua, businessman, economist, while giving fresh insights on the magnitude of the economic crisis that has started to manifest in the wake of the coronavirus pandemic said, some businesses have indeed shutdown.A lot of factories have shutdown, especially those who depend on imports from China and other parts of the world, no thanks to the global lockdown.Sharing his own personal experience, Fasua, the founder and CEO of Global Analytics Consulting Limited, an international consulting firm with its headquarters in Abuja, Nigeria, said he had to ask his staff to go home too in order to cut down on cost and overheads.While acknowledging some of the efforts by government and individuals to mitigate the crisis in some way, he however said it wont be out of place of people receive direct cash assistance similar to what has happened in other climes where the citizenry were given stimulus packages.Also commenting on the economic disruption caused by the outbreak of COVID-19, Prof Ken Ife, Lead Consultant to the ECOWAS Commission, in a monitored radio programme said, livelihoods have been disrupted since the outbreak of the novel coronavirus.There have been a lot of payment challenges as well as exchange of money. People are shutdown. Workers are being laid off. Loans are crashing because of non-payment so you have to make sure that the banks must agree on some moratorium like the CBN had reduced their interest rate on intervention from 9 per cent. Of course, these measures have to be backed by budget.Uncertainty over job securityCertainly the air of uncertainty around job security is a concern across the globe as the International Labour Organisation (ILO) has warned that almost 25 million people could lose their jobs worldwide as a result of coronavirus pandemic.Mr Guy Ryder, ILO Director-General, disclosed this in a statement in Abuja recently after necessary findings.He noted that certain groups will be disproportionately affected especially less protected and low-paid jobs which have high population of, particularly youths and older workers.According to him, the situation is no longer only a global health crisis, but a major labour market and economic crisis that is having a huge impact on people.An initial assessment of the impact of COVID-19 on the global world of work says the effects will be far reaching, pushing millions of people into unemployment, underemployment and working poverty, and proposes measures for a decisive, coordinated and immediate response.The economic and labour crisis created by the COVID-19 pandemic could increase global unemployment by almost 25 million. However, if we see an internationally coordinated policy response, as happened in the global financial crisis of 2008 and 2009, then the impact on global unemployment could be significantly lower, he said.Ryder also said the ILO estimated that between 8.8 and 35 million additional people would be in working poverty worldwide, compared to the original estimate for 2020, which projected a decline of 14 million worldwide.Whither the N3.5trillion stimulus package'Meanwhile, the CBN and the Bankers committee have agreed to back a N3.5 trillion stimulus package for the economy.According to an excerpt from a communiqu, the Bankers Committee also gave its full support to the policy measures amounting to over N3.5trillion earlier announced by the CBN in response to the economic impact of the COVID-19 on Nigeria.The CBN had recently disclosed that it would support critical sectors of the economy with N1.1 trillion intervention funds. This was stated by the Godwin Emefiele-led CBN in a statement.In the statement, Emefiele explained that out of the N1.1trillion, about N1trillion would be used to support the local manufacturing sector as well as boost import substitution.He added that the balance of N100 billion would be used to support the health sector to ensure laboratories, researchers and innovators work with global scientists to patent and produce vaccines and test kits in Nigeria.In a related development, indication emerged recently that the economy will receive a boost of about N3.5 trillion by the CBN.However, The CBN did not reveal where it plans to get the N3.5 trillion it plans to inject into the economy as a stimulus. However, it did mention that the N1.1 trillion will be disbursed as intervention funds. Past intervention funds have been issued from the central banks balance sheet as part of its developmental programmes. This could sometimes involve some of quantitative easing, an economic term for printing of money.Reps to the rescueWorried by the likely ravaging effect of the dreaded coronavirus, House of Representatives had recently passed with the speed of light a bill to provide emergency relief measures for Nigerians in terms of tax waiver for companies for them to keep their workers within the period of the disease.The bill which passed through first, second and third reading within one hour on the floor of the house seeks to provide for relief on corporate tax liability, suspension of import duty on selected goods and deferral of residential mortgage obligations to the Federal Mortgage Bank of Nigeria for a fixed term to protect jobs and alleviate the financial burden on citizens in response to the economic downturn occasioned by the outbreak of COVID-19 disease and for related matters.The bill is sponsored by Rep. Femi Gbajabiamila (Speaker), Rep. Ahmed Wase (Deputy Speaker), Rep. Alhassan Ado Garba (House Leader), Rep. Peter Akpatason (Deputy House Leader), Rep. Mohammed Tahir Monguno (Chief Whip), Rep. Nkiruka Onyeajocha (Deputy Chief Whip), Rep. Ndudi Godwin Elumelu (Minority Leader), Rep. Toby Okechukwu (Deputy Minority Leader), Rep. Gideon Gwani Lucas (Minority Whip) and Rep. Adesegun Adekoya Abdul Majid (Deputy Minority Whip).Leading the debate on the general principles of the bill christened emergency stimulus bill 2020, the Speaker said the bill is expected to grant companies a rebate on Companies Income Tax to the value of 50% of PAYE deductions so long as these companies maintain their PAYE rolls from 1st March 2020 to 31st December 2020.It also seeks to suspend import duties on medicines, medical equipment, personal protective equipment and other such medical materials as may become essential to managing and eradicating an outbreak of coronavirus in Nigeria.The Speaker said the COVID-19 disease was a clarion call on Nigerians to begin to think outside the box on how to confront the unusual ailment that has constituted a major threat to the global economy and mankind.He said the bill will protect the jobs of Nigerians by ensuring that employers of labour keep their work force and pay their emoluments as and when due, stressing that when this is done, such employers will be entitled to a refund of 50 percent of the PAYE of workers within the period.FG cushioning effect of COVID-19 on economyExpectedly experts have warned that Nigeria risks slipping into another recession when indeed the economy is yet to fully overcome its shaky exit from the 2016 episode.This is just as Kristalina Georgieva, Managing Director of the International Monetary Fund said at the weekend that the global economy has now entered a recession that could be as bad or worse than the 2009 downturn.She said the IMF was updating its economic outlook now and it would be released in a few weeks, allowing the agency more time to assess the economic impacts of the virus.Georgieva said lower income countries were being hit hard by the spreading coronavirus, with 81 nations now seeking support from an IMF emergency financing program being used to provide aid.She announced that Kyrgyzstan would receive the first IMF support package of $120.9 million to deal with adverse effects of the virus.She repeated a pledge that the IMF stood ready to make all $1 trillion of its lending resources available to countries being hit by the virus.Echoing similar sentiments, the Minister of Finance, Budget and National Planning, Zainab Ahmed said the Nigerian economy may slide into recession if the coronavirus pandemic continues for the next six months.Mrs. Ahmed gave this warning when she appeared on Channels Televisions Politics Today at the weekend.Speaking on steps taken by the government to manage the impact of the pandemic on the nations economy, Ahmed said, We are hopeful that this pandemic will be limited in time.According to her the countrys economy should close on a positive at the end of 2020 if the virus only last for an average of three months.Interestingly, Mrs. Ahmed who heads the presidential committee to review the impact of coronavirus (COVID-19) on the economy, while fielding questions from State House Correspondents, in Abuja at the weekend said the committee briefed the president on current happenings around the world due to COVID-19 and the impact on the nations economy, got assurances that salaries be paid among other measures.Well, he has directed that we should make sure that salaries are paid, make sure that critical infrastructures like roads, rails are protected, and as much as possible use local inputs so that we retain value within our economy.And that we should also make sure that we take measures that protects the poor and the vulnerable.This meeting was just to brief Mr. President as the situation we are in keeps evolving daily.As the health crisis gradually expands, affecting states, and also the lockdown that has been ordered to help curtail expansion of the health crisis.The consequences of the lockdown are the additional slowing down of the economy and we are to consider the measures that we need to take to mitigate the negative consequences of the slow trade and businesses, she said.
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