1.1 Introduction
Pandemics have happened in the past and will continue to happen in the future, as the COVID-19 outbreak serves as a stark reminder. Nigeria's manufacturing sector has made significant contributions to the country's development through creating jobs, marketing products and services, and fostering the expansion of rural areas. Any type of business, whether large or small, straightforward or intricate, private or public, is founded on offering competitive prices. According to PwC (2020), Nigerian Manufacturing Industries contribute significantly to the Nation's GDP and over 80% of the workforce. Yet enormous challenges hampering growth exist and COVID-19 heightens these. It is difficult for Manufacturing Industries identify inherent growth opportunities in the aftermath of the pandemic or build lasting businesses for generations. With COVID-19, the challenges hampering the attainment of food security in Nigeria could deepen (PwC, 2020).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of Study
Manufacturing industries has been a focal point of the various governments of the world, because the industries have flexible configurations and immensely contributed to nation building respectively (Aderemi et al. 2019). Manufacturing industries were defined by the World Bank as companies employing no more than 300 people. In Nigeria, small and medium-sized businesses are defined as those with fewer than fifty employees. These are essentially independently owned businesses that have invested less than or equal to 600,000 naira in machinery and equipment in order to meet sales targets and create jobs (CBN, 2018).
According to the National Bureau of Statistics (NBS), there are 41.4 million SMEs in Nigeria. The use of locally sourced raw materials, the generation of jobs, the encouragement of rural development and entrepreneurship, the mobilization of local savings, and the provision of a platform for self-employment is what make SMEs distinctive. But it would be impossible to quickly forget the catastrophic effects of the COVID-19 pandemic on human and material resources in the early months of 2020. Similar to how Ebola spread throughout West Africa in 2014, the Wuhan-COVID-19 first appeared in China in 2019. However, COVID-19 led to a worldwide pandemic that spread unhindered throughout the world (WHO, 2020).
Numerous limitations on the flow of people, products, and services were brought about by this new virus. The stay-indoor orders caused factories to close, which in turn reduced production of goods and services. These effects were felt globally by small and medium-sized enterprises (SMEs). The challenge that arose after the lockdown, with some SMEs still operating, was how to ensure that the rate of Covid-19 spread is significantly reduced. Only when SME owners and customers follow the established safety protocols will this be possible.
According to data from Worldometre 2020, COVID-19 infection and transmission may occur without symptoms. If someone is infected but shows no symptoms, this is known as an asymptomatic infection; conversely, if someone is infected but shows no symptoms, this is known as an asymptomatic transmission. These data suggest that asymptomatic and pre-symptomatic cases act as silent spreaders in nations like Nigeria, where contact tracing is ineffective and mass testing is not feasible. This emphasizes the need for social distancing, frequent hand washing, good hygiene, and mask wearing to be practiced primarily among the general public, especially among Manufacturing Industries owners and patrons.
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Effect of Covid-19 on Domestic Traders in the Manufacturing Industries.
1.3 Statement of Problems
Investigation revealed that Manufacturing Industries are as highly susceptible to COVID-19 as other public establishments visited by large numbers of people who interact among themselves and with employees. They are places where guests stay temporarily in close cohabitation and where there is a high degree of interaction customers and workers. These critical issues are not only related to supermarket, restaurants, and cafeterias. In fact, enterprises that are into production of goods and services whereby their client and customers require specific attention, every staff member and customer must strictly comply with the basic protective measures against COVID-19 recommended by the WHO.
Manufacturing Industries are required to strictly follow their staff health, sanitary measures, and correct use of personnel protective equipment during work, applying rigorous visitor/customer policies. Cleaning and disinfection of frequent and high touch points with approved chemicals and sanitizers with defined frequencies and practicing social distancing and employee optimization during shifts can be helpful in preventing the spread of Coronavirus. Thus, this study sought to investigate the Effect of Covid-19 on Domestic Traders in the Manufacturing Industries.
1.4 Aim and Objectives of Study
The aim of the study is to investigate the Effect of Covid-19 on Domestic Traders in the Manufacturing Industries. In achieving this aim, the following specific objectives were laid out as follows:
- To assess the different established covid-19 safety measures that domestic traders in Manufacturing Industries comply on in the area under review;
- To investigate the effect of manufacturing industries safety regulations on domestic traders during Covid-19 Era;
- To determine the impact of COVID-19 pandemic on trade costs in Manufacturing Industries; and
- To find out whether the owners of the manufacturing industries are strict about domestic traders complying with the COVID-19 safety precautions.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Are the owners of the manufacturing industries strict about domestic traders complying with the COVID-19 safety precautions?
- What is the effect of manufacturing industries safety regulations on domestic traders during Covid-19 Era?
- What is the impact of COVID-19 pandemic on trade costs in Manufacturing Industries?
- What are the different established covid-19 safety measures that domestic traders in Manufacturing Industries comply on in the area under review?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There is no significant effect of manufacturing industries safety regulations on domestic traders during Covid-19 Era
- H1: There is significant effect of manufacturing industries safety regulations on domestic traders during Covid-19 Era
Hypothesis Two
- H0: The owners of manufacturing industries are not strict towards domestic traders in adhering to the covid-19 safety measures in Nigeria
- H1: The owners of manufacturing industries are strict towards domestic traders in adhering to the covid-19 safety measures in Nigeria
1.7 Significance of Study
This study would heighten the level of awareness of manufacturing industries owners and employees on the need to comply with the covid-19 safety measures as they are at a high risk exposure to the diseases while rendering commercial services and product.
It will compel chief executive officers, managing director, and business owners on the need to ensure they put up facilities and equipment that will enable the effective compliance to this Covid-19 safety measures within their business premises or factories.
Furthermore, this research will enable government to ensure that authorities involved like Covid-19 task force to do a regular check on Small and Medium Enterprises to ensure that high compliance level is maintained which will reduce the spread of this novel disease.
1.8 Scope of Study
The scope of the research is focused on Effect of COVID-19 on Domestic Traders in the Manufacturing Industries using Nestle Nigeria PLC in Lagos State as a case study.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this research work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Lack of Initial Cooperation from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.10 Definition of Terms
COVID-19:
Corona virus disease 2019 (COVID-19) is defined as illness caused by a novel corona virus called severe acute respiratory syndrome corona virus 2.
Safety:
It is the condition of being free and protected from risk or anything that is harmful
Compliance:
It means adhering to stipulated rules, specifications, procedures, policies and laws
