Nigeria: Sectors To Watch Out For Post COVID-19

The rapid outbreak of the COVID-19 presents an alarming health crisis that the world is grappling with. In addition to the human impact, there is also significant economic, business and commercial impact being felt globally. As viruses know no borders, the impacts will continue to spread. In fact, 94 percent of the Fortune 1000 across the globe, and businesses in Nigeria have been impacted and are already seeing COVID-19 disruptions.

The outbreak of COVID-19, which has become a full-blown pandemic, is restructuring the world economic order, disrupting traditional business models and testing the strength of even the most stable economies around the world.

As a result, organizations are modifying their business continuity plans (BCPs) to contain the effect of the crisis, while, some are at the thinking phase, others are positioning to ahead of the post-crisis era. The above notwithstanding, COVID-19 outbreak has certainly created a silver lining for some sectors going forward.

The public health care sector will witness renewed focus amid efforts to beat the coronavirus and avert future recurrence. Already, the CBN has introduced an N100bn credit support facility for the sector with operational life spanning till 2030.

Similarly, the FG is borrowings from multilateral organizations to improve healthcare. Beyond infrastructure, medical supplies and personal protective equipment, face masks & shield, gloves, gowns, hand washers, soap hand sanitizers, and other medical kits are sub-sectors to watch within the healthcare value chain.

Furthermore, cleaning services, shopping delivery services, (including the use of drones), video conferencing, digital solutions and telecom services are expected to boom.

Meanwhile, Commercial Real Estate (CRE) may suffer as the organizations examine the pros & cons of working from home (WFH). Nonetheless, the Housing sector in Nigeria rebound bolstered by the CBN’s plan to intervene via mortgage financing and institutional capacity.

United Capital Research

April 22, 2020