The Lagos Chamber of Commerce and Industry (LCCI) and the Nigeria Employers Consultative Association (NECA) have called on businesses that would be exempted under the partial lockdown to review their business models in the light of changes in the economic landscape.
Director General of the Chamber, Dr. Muda Yusuf, in an interview with Daily Trust stressed the need for businesses to review their pricing policy, product portfolio and funding options, amongst others, as President Muhammadu Buhari plans to ease the COVID-19 lockdown by May 4, 2020.
He pointed out that with such fundamental changes in the economy, business strategies had to change.
“Although, many of us were expecting an immediate partial lifting of the lockdown but the President’s position is understandable. One week additional is not much given the increasing cases of COVID-19,” he said.
Analyzing President Buhari’s broadcast, he said, obviously, the lifting of the lockdown will be partial and gradual, which according to him meant that businesses that pose a high risk to the spread of the virus may remain under lockdown.
Such businesses according to him include: businesses around conferences, seminars, weddings, funeral ceremonies, graduation ceremonies, entertainments, exhibitions and trade shows. The aviation sector and markets he said are also likely to be affected.
“There are a whole lot of economic activities built around these events which provide sources of livelihood for millions of Nigerians. Our hope is that the situation will get normalized sooner than later,” he expressed optimism.
Commenting on the government’s latest move, the Director-General of NECA, Mr. Timothy Olawale said: “With the intervention, we believe the presidency intends to find a balance between promoting public health and moving toward sustaining the economy as many businesses are on the brink of collapse and require a return to business quickly to stay afloat.”
Olawale said that for businesses to survive and protect their current employment trend, there was a need for direct intervention such as direct wage or income support, wage subsidies as done in UK, France and Denmark.
According to him, such a step will reduce the negative impact of the lockdown on businesses and slow the rate of job losses.
“Of more importance, the association calls for regular consultation with critical stakeholders and the Organised Private Sector for development of workable modalities in the gradual winding down of the lockdown.
“This is to know the challenges confronting businesses due to the lockdown and come up with friendlier approaches”, the NECA DG added.
