Predictions of the impact of COVID-19 on the livelihood of Nigerians and on the economy has been nothing short of catastrophic! Restrictions on movement and association have had severe consequences on business activities and livelihoods of households, resulting in decline in consumer demand and general reduction in economic activity. In April 2020, McKinsey reported that a “contained outbreak” would lead to a 2.5% contraction, while an “uncontained” outbreak could see Nigeria’s economy shrinking 8.8%. Similarly, the International Monetary Fund estimated that the economy is expected to shrink by 3.4% this year and Nigeria could face a recession lasting until 2021.
The dairy industry is arguably the worst hit in the agriculture sector. Decline in household income has crashed consumer spending, necessitating a prioritization of expenditure. Unfortunately, most dairy products are not high on the list of consumer’s essential commodities. Consequently, many dairy businesses are now in jeopardy as their revenue is drying up faster than they can cut costs. Sadly, many will go bankrupt if the situation worsens and if they do not receive help from the government.
Read more: Business Day
