Nigerian Journal of Banking and Financial Issues (NJBFI)

Effect Of Covid-19 Pandemic On The Performance Of Small And Medium Scale Enterprises In Nigeria

Abstract

This study examined the effect of Covid-19 pandemic on small and medium scale enterprises in Nigeria. The specific objectives were to determine the effect of Covid-19 pandemic on small and medium scale enterprises performance in Nigeria; examine the effect of lockdown, movement restriction, market closure, and social distancing due to Covid-19 pandemic on small and medium scale enterprises in Nigeria and evaluate the possible strategies for effective small and medium scale enterprises management amidst Covid- 19 in Nigeria. Data collected were analysed using descriptive statistics and inferential statistics. The descriptive statistics include logistics (Logit) regression, frequencies, tables, mean and percentages while inferential statistics include regression, Pearson product moment correlation analysis and variance analysis. The results revealed that Covid-19 pandemic has significantly and indirectly influence the performance of the SMEs in Nigeria. Therefore as long as the Covid-19 pandemic exists, the lesser the ability of SMEs to maximise profit in Ado-Ekiti. The study concluded that SMEs are indispensable to the attainment of sustainable development of any country and as such their survival is of paramount importance to government. More so, as they generate employment and income, thereby improving the standard of living of the people. It was therefore recommended that government should ensure the prompt and effective disbursement of the Covid-19 relief funds to the SMEs in order for them to be able to cushion the effect of the pandemic on their sales and performance.