SPECIAL REPORT… Without palliatives, small businesses, families suffer amid COVID-19 lockdown in Enugu

With the growing cases of the Coronavirus in Nigeria after the first case was reported on February 27, the government started taking measures to combat the virus and prevent the spread. Schools and markets were closed, large gatherings were banned, inter-state transportation was suspended and then a lockdown was put in place with security personnel deployed to enforce the directives. In Enugu state, Southeast Nigeria where these measures were also announced, no palliatives were put in place to cushion the effect on small businesses and thousands of families who depend on daily income for survival. Patrick Egwu and Jude Chinedu report.

Obinna Kalu runs a laundry business with two apprentices in a spaced make-shift container at Coal Camp, Enugu. After his father died some five years ago, Kalu took over and has been making his daily living from the laundry business. At the end of each day, Kalu makes about N5,000 — N10, 000 depending largely on how many customers that come to patronize him  — sometimes it is less. 

At 6 p.m., on March 31, the closure of all borders, markets, small businesses, inter-state transportation and other activities in the state “no matter the size, until further notice” which was announced by the government in a statement started as part of a wide range of measures to combat the growing cases of Coronavirus in the country and prevent a spread in the state. The state has only recorded two cases of the disease. Exception on the lockdown was however, given to “those dealing on food items, water, pharmaceuticals, medical equipment and other basic items of daily domestic need who must comply with the standard hygiene protocols.”

Nigeria recorded the first case of the Coronavirus in the country on February 27 when an Italian who flew into the country from Milan, tested positive to the virus. A week later, another case was recorded and since then, the cases have been increasing with the Nigeria Centre for Disease Control [NCDC] reporting a total  number of 343 cases with 10deaths and 91 recoveries as at April 13.

Kalu, 39, is not among those in the category exempted from the lockdown and his source of living has been largely affected. He is presently at the receiving end of the lockdown in a one-room apartment where he lives with his wife and three children as no plans were put in place to provide relief during the partial lockdown. Two hours before the lockdown enforcement started, he locked up his shop and asked his apprentices to go home. 

“We have just been  at home for more than a week now and I know what I am facing at the moment as a family man,” he says. “I must feed my family, you know, and I will pay some bills including my shop and house rent which are all due at the end of this month.”

Other small businesses suffer

Kalu is not alone. Small businesses who run 24-hours services and have staff in their payroll in the state would be mostly affected during the lockdown without financial aid from the government. In Nigeria, Small and Medium Enterprises [SMEs] contribute 48 percent of the GDP, 96 percent of businesses and 84 percent of employment. According to the Nigeria Bureau of Statistics, there are about 17.4 million SMEs accounting for about 50 percent industrial jobs and nearly 90 percent of the manufacturing sector in terms of number of enterprises. And closing or suspending these businesses for even a day, has some staggering consequences. 

“The decision to announce these measures is well in place but by not putting some relief packages out there for these traders and small businesses, the effect would be hard for them to recover,” Simon Madu, a financial expert tells Ripples Nigeria. “All these would be greatly affected no matter how we see it.”

Madu continues: “You know what they contribute to the economy but they have been closed for more than a week now and counting. And there is every possibility that it might be extended with new cases recorded each day. The long-term effect would be enormous.”

The days leading to the announcement of the lockdown was the hardest, Kalu says. At the market, prices of food stock and other supplies were hiked by more than 50 percent as residents in the state made a last minute rush to purchase all the supplies they would be needing. 

“A paint of garri which was formerly sold for N500 went up to N1500 and we were all surprised,” he says. “I and my wife couldn’t buy much with the little money we had.”

On March 24, the chairman of Enugu North local government council released an announcement closing Akwata market — one of the busiest and popular commercial food markets in the Southeast region. 

Eunice Okeke sells tomatoes and pepper at the market. On March 22 before the lockdown began, ten baskets of tomatoes worth about N100, 000 which she had ordered from her suppliers in Kano, northern Nigeria arrived at the market. She was yet to finish selling them before the market was closed.

“I didn’t know it would be so soon,” Okeke who is the breadwinner of her family said while reacting to the lockdown. “I wouldn’t have placed an order for the goods. They have been locked up inside my shop and I know they would have been damaged by now.”

While announcing the closure of the market, the council authority said “While Council meets with sellers of this item to find an alternative location to transact their businesses, we implore both the sellers and buyers to comply with this directive which was reached after due consultation with our environmental and community health workers.”

But Eunice says no alternative arrangements were made for the traders at the market. On April 7, traders at the food market which was shut down — about 20 of them, embarked on a peaceful protest to the government house, pleading with the governor to reopen their section of the market with perishable goods.

Hoisting placards and putting on face masks, the traders pleaded with the state government to reopen the food section of the market which was included in the list of exempted items, to save their perishable products which have been locked-up. 

At Ogige market which is located at the University town of Nsukka, padlocks were fastened to shops as the entrance gate to the market was shut down. The market attracts traders from Kogi, Benue and other neighbouring states. But with the closure in enforcement of the lockdown, trading activities were stopped abruptly. 

“I didn’t have money to buy food stock for my family,” says Emma Ukeje, one of the traders at the market. “For the past one week, we didn’t make sales here and suddenly they asked us to close our shops and go.”

‘No palliatives’

While the government’s move to put a lockdown in place  was commended, economic experts disagreed with the approach, arguing that some form of palliative programmes would have also been announced by the government to help small businesses and families who are largely affected by the global pandemic. 

Many Nigerians like Kalu rely on daily income from their businesses and other trading ventures to make a living and provide for their families. In 2018, despite being the largest producer of oil in Africa, Nigeria displaced India as the country with the largest number of people living in extreme poverty with an estimated 87 million people living on less than $1.90 per day, according to a report by the World Poverty Clock in partnership with the Brookings Institute. The lockdown is a hard time especially for poor households. 

“Without making sales for a day, some families cannot eat and this is a fact we all know,” Madu says. “Many people can afford to be in their homes during the lockdown because they can afford it but what of those who cannot afford it and who depend on daily hustling to provide for their families?” Madu queried. 

While the government paid the March salaries to civil servants, no palliatives or relief packages were provided for residents like Kalu who closed their businesses and don’t have government-related jobs.

As residents of the state are groaning due to their losses as a result of the lockdown, some in other states are benefitting from stimulus packages offered by their governments. For instance, in Anambra state, the government announced a welfare package for the residents of the state whose sources of earning have been negatively impacted by the pandemic. In a state broadcast on April 2, the governor, Willie Obiano announced the distribution of 200 bags of rice to each of the 181 communities in the state to be shared among senior citizens from 70 years and above. In Ebonyi state, the government earmarked N200 million to provide relief packages for residents of the state. 

“This is a difficult period for these people especially with the economy which is presently at a free fall as a result of this pandemic,” Madu says. “And the consequences before this ends will be more considering that the lockdown might be extended.”

It’s just about two weeks since the lockdown in Enugu started and it seems like forever for Kalu and others who run small businesses like him to survive. He however, hopes that a decision or policy from the government would bring relief to him and his family in any little possible way.

“They should always consider people like us whenever they are taking such actions,” he says. “My works are stalled in my shop and customers have not paid me before this started.”

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