Because of the COVID-19 problem, which has resulted in travel restrictions and border closures, all components of aggregate demand are declining. Customers spend mostly on basic products and services as a result of movement restrictions, as well as low expectations of future income and a decline in wealth and expected wealth in Nigeria.
Movement limitations have had an impact on the population’s income-generating capacity, limiting their own consumer expenditure.
Nigeria has a huge informal sector that provides around 65 percent of its economic production, and a large proportion of the population lives near the poverty line, leaving them extremely vulnerable to shocks. One of the Federal Government’s economic assistance programs for micro and small companies affected by the epidemic is the MSME Revolving Guaranteed Off-take Scheme.
The Payroll Support Scheme is designed to help MSMEs who have been negatively impacted by the epidemic. Payroll Support will be provided to up to ten employees per eligible MSME under the scheme.