COVID-19: Effects, Way Forward

Today, we are looking at the effects of the Coronavirus pandemic, otherwise known as COVID-19, on Small and Medium Enterprises (SMEs) in the country. Although the COVID-19 lockdown has since ended in Nigeria, many small and medium entrepreneurs are still counting their losses.
Our correspondent went out to interact with different entrepreneurs in Port Harcourt about the ravaging effects of the pandemic on businesses and the way forward for SMEs and the economy at large. Below are the excerpts of their views and suggestions.
To Mrs Chinanu  ldong-Esit Umanna, the Manager of Health Care Equipment Limited, in Port Harcourt, the SMEs “faced and are still facing challenges”, even after the lockdown.
Umanna said the issue of expired hospital materials, drugs and foodstuffs in the market deserved government’s urgent attention to safeguard the health and lives of the masses.
“Government needs to retrieve expired dugs, hospital equipment/consumables, foodstuffs and cosmetics from the SMEs and exchange them with new ones for the sake of the masses who are on the receiving end.
“The business men and women have lost so much that only the God-fearing ones would want to throw away the expired goods, when they have little or no business capitals.
“Selling expired drugs and equipment causes loss of lives and general damage to the society. So, government should act fast. Some go as far as changing the date of the goods”, she alleged.
Umanna stated the need for multinational companies to also help in retrieving and replacing expired drugs to help the SMEs which are battling to survive.
She also noted the need for credit facilities and sponsorship by mega companies to grow small and medium enterprises.
Mrs Umanna, however, reiterated the need for owners of businesses to be faithful in paying back money for credit supplies and loans to encourage government and mega companies that had made moves in this direction, adding that failure of one SME can affect other genuine ones.
Mrs Joy Nwakanma, Manager, Farijoy Technical Enterprises, Trans Amadi
The Manager of Farijoy Technical Enterprises, Trans Amadi, Port Harcourt, Mrs Joy Nwakanma, who deals on building materials and safety tools, said the re-opening of closed borders would go a long way in revamping SMEs.
Mrs Nwakanma, who is the Financial Secretary of Elekahia Pillars Association, noted that most building materials and technical tools came from outside the country.
According to her, the SMEs are suffering untold hardship due to unavailability of materials and business capital to start with again after the lockdown.
“SMEs paid for both house and shop rents during the lockdown without running their businesses for over five months. These payments were made from business capitals; this is why many shops are closed.
“There is need for the government to give entrepreneurs loans to enable people bounce back and be productive which will have outstanding effect on the economy of the country”, she said.
She also stressed the need for the government to establish factories that would produce local building materials, if the borders must remained closed, to promote SMEs in the country.
“We heard of loans, we filled forms and provided all the necessary documents but up till now, nothing has been done, but people are accessing the loans without stress especially in the northern part of this country.
“What we lost in five months cannot be recovered easily but a step in the right direction can go a long way in helping us and the society at large”, she added.
Mrs Nwakanma said that there was also the need for the government, associations, cooperatives and regulatory agencies to organise regular reorientation seminars for small and medium entrepreneurs in order to better the economy of the nation.
She advised business men and women not to give up in the face of the present challenges but to buckle up and continue to make efforts towards revamping their businesses.

Mr Simeon Ndubuisi, Sales Manager, S-Mone Global Company
To the Sales Manager of SI-MONE Global Company, Port Harcourt, Mr Simeon Ndubuisi, the pandemic resulted in increasing the cost of the goods, especially the technical and welding tools.
Ndubuisi said that the pandemic slowed down businesses and increased the rate of unemployment which was already a problem in the country.
“Technical equipment we bought at N100,000 now cost N180,000, while those we bought at N800 now go for N1.8 million turning the customers and SMEs to complainants.
“The youths are angry because things are very expensive and many shops are closed down because they used their business capital to survive during the COVID-19 lockdown”, he said.
The way forward, according to him, is for the government to assist small and medium entrepreneurs with grants and low interest loans to boost businesses.
He said, “I have applied for the Federal Government youth loan but have not been given anyone.
“Another way for SMEs to recover from the present economic situation is for the government to re-strategise and fund the system which will in turn restore the economic situation of the country to normal”.
Ndubuisi also noted the problem of high exchange rate on businesses, adding that the financial situation has sent many to early graves, while some shops are closed down.
“I planned to have branches in Abuja, Uyo and Lagos which will result in employing more workers but I am handicapped due to lack of funds.
“If I employ people in the three branches, it will also help to reduce unemployment in the society. If government helps the SMEs, the society will be a better place and crime would definitely reduce,” he stated.