Impact of Covid-19 pandemic on micro, small & medium enterprises in Nigeria (MSME)

Abstract

The coronavirus pandemic has significantly impacted the operations of MSMEs as it affects both the demand and supply of products and services provided by these MSMEs. Apart from its effect on the demand and supply, it also presents a significant challenge in the way MSMEs are being managed as well as to employees. This study was aimed at investigating the impact of COVID-19 pandemic on MSMEs in Nigeria. The study adopted the cross-sectional survey research design in which data were collected from 499 MSMEs in Lagos State Nigeria using the Cluster Sampling Technique. Structured was used for data collection and it was administered to the MSMEs. The data collected were analysed using descriptive statistics of frequency, mean and standard deviation and also inferential statistics of regression. The results from the analysis revealed that the declaration of the emergency state and the business suspension request negatively impacted the performance of the MSMEs sector; subsidy schemes have positive impact on MSMES survival and there is medium-run economic impacts of successfully controlling COVID-19 infection on MSMEs performance. The study conclude that COVID-19 pandemic has negative impact on business performance and there is need for more subsidy schemes and strict adherence to COVID-19 guidelines in order for MSMES to improve in their performance.