The World Bank (WB) has said that half of those employed have lost their jobs due to Coronavirus (COVID-19) pandemic. According to the bank, the percentage of individuals who were working before March, but now out of employment at 42 per cent.
The bank’s Senior Financial Sector Specialist, Ahmed Rostom, shared the information in a data during a Development Bank of Nigeria (DBN) virtual conference on risk sharing. The panelists agreed that credit risk guarantee will provide a safety net for Micro Small and Medium Enterprises (MSMEs) to access credit post COVID-19.
Speaking on the impact of the pandemic on the local economy, Rostom stated: “42% of individuals who were working before March 2020, especially those working in hospitality and service industry are no longer working.” The panelists agreed that MSME’s are the largest employers of labour as they account for about 84 per cent of jobs in the country.
“They are important industrialisation agents, and a driving force in the attainment of industrial growth because of their value chain diversification and expansion of industrial production. They contribute nearly half of the country’s GDP at 48 per cent yet less than five per cent of MSME’s have access to finance,” they said.
