Night Clubs, Bars Grapple For Survival As COVID-19 Restrictions Cut Revenue

As pressure mounts on bars, recreational centres and night club operators to remain closed down as a result of the Coronavirus pandemic, the Presidential Steering Committee on Covid-19 have fallen under serious criticism by stakeholders who described the directive as paralysing those businesses even when there is no direct intervention  fund for them.

This is against the backdrop that bars, night clubs and recreational centres were not directly captured in the Covid-19 palliative distributed by the Central Bank of Nigeria.

Nigeria’s big cities like Lagos, Abuja, Port Harcourt and Calabar thrive on night clubs,  bars and recreational centres.

But the government expects them to remain closed.

Following the outbreak of the pandemic, the apex bank in late 2020 said it disbursed N3.5trn stimulus package  to strengthen the economy.

In February 2021, the bank said, under the Targeted Credit Facility, the Bank had disbursed N218.16bn.

Also, under the N100bn Health Care Intervention Fund, the Bank had disbursed N94.34bn.

On the N1trn Manufacturing Intervention Stimulus, the sum of N803.36bn had been disbursed, while the Creative Industry Financing Initiatives mainly targeted at youths had seen the disbursement of about N3.19bn.

Meanwhile players in the aviation sector received a N27bn bailout from the Federal Government.

The Director-General of the Lagos Chamber of Commerce and Industry, Muda Yusuf, who is at variance with the PSC decision told THE WHISTLER that shutting down those businesses is a huge problem for the  hospitality sector.

The LCCI boss said, “As a matter of general principle, this thing should be done in a way that will also not disrupt businesses unduly.

“So if there is any sector that requires support, I think the hospitality, tourism and entertainment sector will be one of such sectors.

“The palliatives that were given under the Economic Sustainability Plan, were not very specific to the tourism and the entertainment sector.”

Yusuf said for some of the bars, night clubs and recreational centres, they have not been able to do any serious business in the last two years.

He said, “So, many of them are still grappling with the problem as we speak.

“And in any case even if they give a facility to a business that has been shut down, I mean how will he even pay back? Unless they are giving you a grant.

“So, head or tail, it is still a big problem for that sector.”

Grappling with the impact of the national lockdown in March 2020, bars like Eleven :05 Cafe in Gwarinpa, Abuja opened up for full operations after the government relaxed restrictions on some businesses.

At PW, a bar located at the Third Avenue Cornershop in Gwarinpa, nightclub and bar businesses have been opened despite the restrictions.

Some of the nightclubs have had to renegotiate salaries for old staff or employ fresh workers who are willing to take an amount starting from N15,000, an ex-worker at Laropa Hotel in Gwarinpa (name withheld) told THE WHISTLER said.

Just recently, the Presidential Steering Committee said it had not relaxed restrictions on bars, nightclubs and recreational centres.

The PSC limited gatherings especially in enclosed spaces to a maximum of 50 persons.

It also placed a curfew from 12am to 4am as night club operators see it as a direct attack on their businesses.

The peak of most night club activities last between 12am to 4am.

Based on a visit to some of these bars and nightclubs by THE WHISTLER days after the fresh directive by the PSC, it was seen that it was business as usual.

But some of them have reduced operation time to 1am.

“Generally, the impact has been very tough on them,” said Yusuf.

Being at odds with the PSC, he said the notice was very short, adding that people who had weddings to hold in some of the event centres had already given out cards.

The LCCI boss said, “I think some of these things need to be managed in a way that will also minimise disruption of businesses and of investment.

“Some of them are very structured and they can abide by some of these protocols if they are properly guided.”

Paul Alaje, a Senior Economist at SPM Professionals during a programme on Arise TV also said the decision will erode the night economy.

“The night economy will be eroded away starting with bars and so many other businesses that are certainly giving a lot of jobs to Nigerians,” said Alaje.

According to Alaje, low income earners who dominate the night economy will be badly hit by the restrictions.