• Friday, March 29, 2024
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3 survival tips for Nigerian businesses in a corona economy

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As the coronavirus outbreak is gradually bringing economic activities in Nigeria to a standstill, the possibility of companies recording poor revenue is becoming a closer reality.

With the possibility of a lockdown insight, the bottom line of most businesses in Africa’s largest economy is likely to take the most hit from the virus outbreak.

Nigeria recorded the biggest daily surge of coronavirus case on Thursday after its reported 14 positive tests. This brought the total confirmed cases to 65 with just a death compared to three recoveries.

In order to control the increasing number of cases of the outbreak, companies operating in the country have enacted a partial closure of some of their operations, forcing staff to work from home.

Non-food markets in Lagos and Abuja will come under lock and key today as both the federal and state governments sweep into action to keep the virus at bay.

According to market analysts, the move, though commendable to contain the outbreak, could put more stress on sales activities of companies, already struggling with tumbling revenue.

While the Nigeria government like its global counterparts is working in partnership with different stakeholders is to curtail the spread of the virus, there is however no confirmed cure for the Covid-19 disease.

For the meantime, economists have recommended the three following survival tips to help Nigeria businesses to ease the unavoidable impact of the virus outbreak.

Staff safety

In order for companies to ensure their businesses are still in operation while also keeping their employees safe from the virus, industry experts recommended that Nigerian companies should set up a facility that can enable them to work from home.

According to Andrew S. Nevin, Partner and Chief Economist at PwC private sector need to play a major leadership role in combating the crisis like a large number of the country’s corporations are already doing.

“With the unprecedented challenge presented by COVID19, Nigeria and the Nigerian business community need to be totally focused on the health of Nigeria’s people,” Nevin said.

Other recommendation from industry experts included the fact that businesses need to be focused on their crisis management plans and business continuity management.

Secure business continuity

The ability of companies to maximize efficiency, productivity and remodel their businesses strategy to reflect current realities is one of the survival tips cited by industry experts.

“An option would be for businesses where possible to retool their activities to manufacture essentials that would be in major demand during the virus outbreak,” Ayorinde Akinloye, a research analyst at CSL stockbrokers said.

The governor of the Central Bank of Nigeria while encouraged Nigerian businesses urged them to take “advantage of turning the seeming adversity of COVID-19 into an opportunity”.

“Review terms and conditions on commercial relationships to identify constraints. Develop and test contingency scenarios for the workforce, supply chain and footprint to operate in a restricted capacity,” advisory team of EY said advising that companies should confirm responsibilities and delegate authorities under contingency measures.

Communicate with stakeholders

Considering the virus outbreak came as a surprise to Nigerian consumers and industry stakeholders, companies are advised to create cross-functional response team to address emerging challenges and issues and also track position daily.

“Understand critical stakeholders and their priorities in the short and medium-term, including people, commercial partners, financial stakeholders, shareholders, government and tax authorities, regulators and pensions,” analysts at EY recommended adding that companies would need to prepare engagement plan to address needs and priorities