Photograph — WHO

Manufacturers and startups in Nigeria have joined the private sector in calling for government support as the country records more cases in the coronavirus outbreak. This has led to the closure of businesses and lockdown of entire states in some parts of the country.

The Manufacturers Association of Nigeria in a statement released Thursday asked the government for waivers on import duties and unfettered access to industrial inputs such as gas, electricity, fuel and other essential infrastructure. A move to ensure manufacturing operations continue without difficulty, especially in making essential commodities such as pharmaceuticals and consumables.

“In the case of an eventual lockdown, the government should consider the introduction of fiscal measures such as waivers on import duties on active pharmaceutical ingredients and other essential products,” MAN said in the statement signed by its President, Mansur Ahmed.

The association also wants the central bank to extend the supply of foreign currency to the sector at pre-COVID-19 rates while additional fiscal demands include tax holiday to companies on corporate tax, a waiver on Value Added Tax and reduction of personal income tax to increase the “disposable income of an average Nigerian worker,” it read.

Data from the Purchasing Managers Index released by the Central bank of Nigeria for March shows a 34-month low slump in activity level with both manufacturing and non-manufacturing PMIs dropping 51.1 and 49.2 points from their respective levels of 58.3 and 58.6 last month.

“We believe the sharp decline witnessed in the sectors is due to the disruption of economic activities brought about by the outbreak of COVID-19,” Lagos-based CSL Stockbrokers said in a note. “The virus has affected global supply chains as countries across the globe have implemented a total lockdown… This has resulted in the shut down of factories as manufacturers can no longer import raw materials required for production even as demand from customers remains constrained by the “stay at home” policy amidst (the) loss of jobs.”

Startups are also starting to experience losses from the pandemic with an increasing number of confirmed COVID-19 cases in Nigeria and many of the country’s small businesses are at risk of collapsing in months without adequate support. For instance, the commercial capital Lagos on Thursday began a seven-day partial lockdown that involves the suspension of court sittings, and closure of markets and stores, except for essential services. “With the epicenter of economic activities (Lagos) in the country on the verge of a complete lockdown, we expect activities to remain downbeat in both sectors in the short term,” the stockbroker said.

Founders and managers have voiced concerns about the effects of the virus on their businesses with the loss of customers, dwindling revenue and increasing financial obligations. “Well, the effect of this virus has been a colossal fall from progress for our business,” Drivers.ng co-founder Daniel Esthekpaobo told Nairametrics while calling on the government for assistance to avoid a collapse of their business.

“COVID-19 is not just coming to disrupt our health or daily activities, it has also come to disrupt businesses,” said Victor Ejechi, partner at Statisense, a data consulting firm. “Many startup companies after the pandemic will face difficulties in operating due to huge losses and may eventually shut down jacking up the number of unemployed people in the country.”

Meanwhile, the CBN has a ₦50 billion credit facility to cushion the effects of the pandemic on affected households and small businesses for which it released a set of implementation guidelines this week. The regulator and the Banker’s Committee are also forming a coalition against COVID-19 in partnership with the private sector, led by Aliko Dangote Foundation and Access Bank, CBN Governor Godwin Emefiele said Thursday.

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