COVID-19: 82% of Nigerian companies may record poorer revenue –ACCA

There is a massive possibility that 82% of corporate organisations in Nigeria will have their revenues contract in the wake of the coronavirus outbreak.

Data gleaned from a new global study conducted by the Association of Chartered Certified Accountants (ACCA), involving 10,000 finance professionals with the participation of an expert panel of 227 in Nigeria, revealed that 55% of respondents envisage that the COVID-19 pandemic will have worst implications for employee productivity in corporate Nigeria.

Read also: Local airlines extend flight suspension 

“Only 45 per cent of businesses have been able to conduct a financial reforecast, perhaps due to the fast-evolving scale and duration of the COVID-19 pandemic alongside the extent of necessary social distancing controls put in place by governments, which have created vast uncertainties for businesses.

“As a result, 82 per cent suggest their organisations are expecting it is likely they will see negative revenue growth, with 77 per cent saying they are expecting negative profit growth too,” the research report says.

More than one third of the respondents believed that business viability would encounter a major setback of cash-flow problem just as a third of them said they were encountering disruption in the supply chain from preferred suppliers in places affected by the pandemic.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now