A research conducted by the Association of Chartered Certified Accountants research shows that about 82 per cent of firms expect to record negative revenue growth as a result of the adverse effects of COVID-19 on the economy.
The ACCA stated this in a report, ‘Covid-19: Finance professionals in Nigeria share concerns about the impact of the global pandemic on businesses.’
Part of the report read, “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.”
According to ACCA’s new global research among 10,000 finance professionals, including an expert panel of 227 in Nigeria, large and small organisations in the public and private sectors expressed deep concerns about the impact of COVID-19 on their people, productivity and cash flow.
It stated that respondents in Nigeria said the most severe impact was from employee productivity being negatively affected, with 55 per cent saying this was the case, followed by cash flow problems hitting business viability, with 33 per cent stating this as an impact.
Just under a third of respondents explained they were unable to obtain supplies from preferred suppliers in regions affected by the outbreak.
— Punch