Nigerian Economy in Record Fall Due to COVID-19 – Report

A report by the Stanbic IBTC Nigeria Purchasing Managers’ Index (PMI) said that the advent of COVID-19 virus pandemic in Nigeria has led to a record fall in employment generation in the country.

The report also said that the Nigerian private sector had remained in decline at the end of the second quarter of the year as a result of the pandemic and subsequent lockdown in most parts of the country.

It, however, said that a loosening of the lockdown by the Federal Government in May led to softer declines in output and new orders, but regretted that difficulties in paying staff led to a record fall in employment, while business confidence was at the lowest in the survey carried out by the company.

The report hinted further that business organisations had to contend with a substantial increase in purchase costs, which resulted in a near-record rise in selling prices.

It added: “The headline figure derived from the survey is the Purchasing Managers’ Index (PMI), a property of Stanbic IBTC Bank PLC. Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show deterioration.

“The headline PMI rose to 46.4 in June, up from 40.7 in May to signal a softer deterioration in business conditions in the private sector. That said, operating conditions have now worsened in three consecutive months.

“Both output and new orders continued to fall, albeit at reduced rates. Restrictions to prevent the spread of COVID-19, a lack of customers and insufficient funds to commit to new orders were all mentioned by respondents. New export orders also fell, and to a greater extent than total new business.”