THESE are not the best of times for businesses and brands all over the globe. After months of lockdown, induced by the COVID-19 pandemic, public and private sector institutions are beginning to grapple with harsh economic conditions that could lead to business shutdown, as predicted by the World Bank, World Economic Forum and the International Monetary Fund (IMF).
More worrisome is the fact that a sizable number of countries, including developed and leading economies, are beginning to experience economic recession as a direct result of the Covid-19 pandemic.
For instance, while the GDP in France has contracted by13.8%, those of Italy and Canada have suffered the same fate by 12.4% and 12%, respectively.
Nigeria is not immune, either. Not a few economists and business analysts believe it’s a matter of time before her economy begins to experience such fate.
According to Tunji Andrews, an economist and business analyst shares this sentiment.
“Nigeria will join soon, as will most countries of the world. Recessions hardly ever happen in a vacuum. One event may be the catalyst, but there are usually events unfolding up to it. For the UK, it was BREXIT then Covid-19. For Nigeria, it was the madness in the oil market and then Covid-19,” he added.
Interestingly, the unfavourable economic climate seems to be compelling many of the nation’s businesses to come up with various survival strategies. And, one of such is the tinkering with the prices of their goods and services.
Just recently, Pay TV company, StarTimes, announced an increase in the price of its subscription packages, citing devaluation of the Naira, increase in Value Added Tax (VAT) and fluctuating exchange rates, among other economic factors, as posing a huge threat to the survival of businesses in the country.
According to the Brand and Marketing Manager of the company, Viki Liu, the company, like other businesses, was not immune to the vagaries of the nation’s economic weather. She however assured that the pay tv service provider would enhance its flexible payment options as a way of making it up for its subscribers.
Another pay tv operator, MultiChoice Nigeria, also announced an adjustment of prices on some of its DStv packages from September 1, 2020, noting that prices of subscription plans in the lower cadre will be unchanged.
“We periodically review our pricing, taking into consideration factors such as inflation and operational costs,” the company stated.
The company however assured its subscribers of its commitment to delivering the best video entertainment experience, telling the best local and international stories.
In the public sector, the Lagos Bus Service Limited (LBSL) and the Bus Rapid Transit (BRT) have also increased bus fares by 46% and 50% respectively citing high operating costs.
Unfortunately, experts believe this could be the trend for sometime to come. For instance, data provided by the National Bureau of Statistics (NBS), in its latest Consumer Price Index (CPI) report, revealed that the nation’s inflation has consistently increased for 11 months, rising from 11.02% in August 2019 to 12.82% in July 2020.
Perhaps some palliatives, as being advocated in some quarters, in form of corporate income tax rebates, deferral of government payments, and reductions in tax rates, will help corporations retain more immediate cash and put them under less pressure.
For instance, Jonathan Lavender, KPMG’s Global Head of Private Enterprise and Head of Markets believes some of the incentives have become imperative to save businesses from collapse.
“It has become necessary for governments to introduce incentives and economic relief programs that help alleviate business stress and bolster economies,” he stated.
Such palliatives may also save the buying public the burden of having to pay more; since the covid-19 induced stress, a challenge that has occasioned a price review, in the first place, will be eased, giving businesses other options of enhancing their bottom-lines, besides price review.
YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
North May Back Atiku In 2023 — Yakassai •Says APC should pick Southerner as presidential candidate •‘Tinubu better than Buhari who has no plan’
IF former vice president, Atiku Abubakar, contests for the presidency in the next general election in 2023, the majority of the votes from the North will go to him, elder statesman and politician, Alhaji Tanko Yakassai, has said. Yakassai, a former Liaison Officer to former President Shehu Shagari, described both Abubakar and former Lagos State governor, Senator Bola Tinubu, as potential 2023 presidential contenders…
Buhari Suspends Babalakin As UNILAG Pro-Chancellor, Sacks Acting Vice-Chancellor
President Muhammadu Buhari has suspended the Pro-Chancellor and Chairman of Governing Council of University of Lagos (UNILAG), Dr Wale Babalakin, SAN and the Vice-Chancellor, Professor Oluwatoyin Ogundipe, over the lingering crisis…
‘I Lived As A Beggar. I Begged To Eat, I Begged To Wear Clothes, I Even Begged To Put My Head Under A Roof’
EMMANUELLA Udeh had just finished peeling melon inside the one-storey building she lives in when Saturday Tribune called. Surrounded by a calm environment in Emene, Enugu East Local Government Area of Enugu State, the 39-year-old paraplegic recounted her experience since she was disengaged as a beneficiary of N-Power, a scheme set up by the Federal Government to address the issues of youth unemployment and…
We Pay N250,000 Bribe Per Trip, Lagos Truck Owners Cry Out
On Monday last week, the Lagos State government staved off a planned strike by the Petroleum Tanker Drivers Association (PTDA) in the state over alleged extortion of its members by security operatives and hoodlums in the course of conducting their lawful business…
It’s Sad That Public Servants Depreciate Immediately After Retirement —Osun Ex-HoS, Akinwusi
I must tell you that I am one of the saddest people around because having served the government for a good part of one’s life, 35 years, and retiring with nothing to take home is disheartening. Even when such people were still in the active service, their monthly earnings were not sufficient for them. Before I became the HoS, I was always challenged when I saw people retire and discovered that the quality of their lives depreciated…
El-Rufai’s Humiliation And Mamman Daura’s Curious London Trip
The rescission of the invitation extended to Governor Nasir El-Rufai to speak at the annual conference of the Nigerian Bar Association (NBA) as a consequence of sustained social media pressures from people who are discomfited by his history of intolerance and verbal terrorism against his own people will inflict tremendous violence on the governor’s psychic wellbeing…
The Indigenous People of Biafra (IPOB) has declared a total sit-at-home lockdown across the South-East…
"It also does not request payment of fees in exchange for contracts, grants, or financial…
Residents of the Agbarho community in Ughelli North Local Government Area, Delta State, woke up…
He said the country’s “failed experiment in open borders” had led to net migration hitting…
Nigerian rapper and actor Folarin Falana, popularly known as Falz, has sparked controversy after publicly…
She said, "Keir Starmer once called all immigration laws racist. So why would anyone believe…
This website uses cookies.