Article 11 10 3 955-971
Article 11 10 3 955-971
ISSN: 2223-814X
*Corresponding Author
How to cite this article: Eneyo, V.B., Oba, D.O., Ochiche, C.A., Essien, D.A. & Antai, A.S. (2021). Economic
Impacts of Curfew Imposition on the Nightclub Industry in Calabar Metropolis, Nigeria. African Journal of
Hospitality, Tourism and Leisure, 10(3):955-971. DOI: https://doi.org/10.46222/ajhtl.19770720-142
Abstract
The nightclub industry in Nigeria is a lucrative part (subset) of the larger music, drinks and entertainment industry
that operates from dusk to dawn. The nightclub industry is an economy that is growing, robust and competitive in
comparison to other economies. Conversely, the imposition of a dusk to dawn curfew in Calabar as a proactive
strategy to curb security challenges in Calabar Metropolis affects the nightclub economy. The study investigates
the economic impact of curfew imposition on the nightclub industry in Calabar. The research employed the
qualitative approach and adopted a purposive sampling technique for data collection, targeting nightclub operators
of Fifteen (15) nightclubs. The study revealed that the curfew imposition resulted in the decline of business
patronage, job and income losses to nightclubs due to the curfew imposition amongst other contending factors.
The study concludes with recommendations on ways to salvage the negative impact of curfew imposition on the
industry and return nightclubs in Calabar to business growth, profitability and resurgence.
Keywords: Economic impact; Curfew imposition; Nightclub; Calabar Metropolis; Economic growth; Security
challenges
Introduction
Across the globe, many nations of the world have been tackling inevitable security challenges.
Some countries have adopted several strategies to fight crime within their territory (Bottom &
Kostanoski, 1983; Green, 1981). These established agencies enforced several laws to control
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the escalating cases of crimes and other forms of insecurity (Bell, Dean & Gottschalk, 2010;
Bottom & Kostanoski, 1983; McCaney, 2010). In situations where they are constant and rising
cases of security challenges, most countries often adopt the imposition of curfew as one of their
strategies to reverse the trend. In Nigeria, the imposition of curfew by the government has been
an alternative way to fight the rising security challenge in the country that hampers the
economic activities of several hitherto vibrant sectors, specifically nightclubs. Of particular
interest is the Calabar Metropolis that the state government has since October 2020 imposed
an indefinite curfew to curb the several cases of crime and insecurity in the city (Vanguard,
2020). As part of the requirements of the state curfew: businesses are required to shut their
doors throughout curfew hour, mass gathering prohibited, loitering, and freedom of movement
banned or highly restricted except for those on essential duties or emergency cases.
Undoubtedly, the imposition of a dusk to dawn curfew in Calabar now hampers the economic
activities of all sectors, specific, nightclubs whose operations thrive during most of the curfew-
imposed hours.
Numerous researches have focused on the issue of juvenile curfew, nightclubs,
bouncers, income, flood, and violence (Adams, 2003; Akintoye, Inah, & Odunsin, 2017;
Demant, 2013; Digha & Akintoye, 2017; Effiom, 2012; Eja & Eneyo, 2018; Eneyo, 2018;
Eneyo & Edward, 2018; Marketos, 1995; Abua, Afangideh, Ochiche & Ashua, 2014).
However, very few of these studies, if any, have adequately addressed the economic impact of
curfew imposition on the nightclub industry. As impactful as the nightclub industry is to the
economic growth of many cities globally, the extent and actual nature of these impacts has not
been documented. This study, therefore, will seek to determine the economic loss(es)
experienced by the nightclub industry in the Calabar metropolis, Nigeria and in the
circumstances of the continuous implementation of the curfew regulation by the state
government without any specific date which it will be relaxed.
tourists, fun-loving youths residing in the city as well as couples, who go to the club for
relaxation, drinking, eating, singing (karaoke), dancing and to have a good time after a hectic
day (Malbon, 1999; Northcote, 2006; Thornton, 1995). These actions ultimately lead to an
increase in the profits from sales of drinks and other nightclub activities. Interestingly,
nightclub customers pay a cover charge, buy drinks in the club, and patronize other support
services in the city (Eja & Eneyo, 2018; Eneyo, 2018; Eneyo & Edward, 2018). Nightclubs pay
the DJ to play live and recorded music, spend a large sum on rents, taxes and utilities in a given
location. Increasingly, nightclubs in the Calabar metropolis face competition from other
hospitality ventures, such as lounges, hotels and guesthouses, who offer nightclub services to
their customers and other patrons of the service (Eja & Eneyo, 2018; Eneyo, 2018). The
development has led to enterprises exclusively offering nightclub services to innovate and
become creative in their business approaches to ensure profitability and resurgence.
Analysis, 2004:4). The survey revealed that nightclubs pay $531 million to 19,400 (direct) staff
(ARA, 2004:15). In addition, the research also revealed that nightclubs generated
approximately $8.5 billion additional revenue, $2 additional earnings, while 76,000 additional
jobs in New York City (ARA, 2004:15-16). In the UK, nightclubs had sales of over £2 billion
in 1997, and admitted around 185 million customers (Mintel, 1998:15); employs 830,000
people as managers, DJs, bar staff, promoters, and cleaners (Brewers and Licensed Retailers
Association (BLRA, 1999).
The nightclub industry is the primary sector in Nigeria that sustains several direct and
indirect jobs (Eneyo & Edward 2018). By implication, where the nightclub industry thrives,
the economy of the host community will undoubtedly improve. Hence, the sector assumes a
significant role in the economic growth of many countries throughout the globe. Nightclubs
attract customers within the catchment areas and contribute to the patronage of the business
and other support services within and around the host community (Chatterton & Hollands,
2003; Edward & Eneyo, 2018; Eneyo, 2018; Northcote, 2006). The industry is a leading
element in drawing conventional businesses globally. According to Berkley (1999), nightclubs
usually draw the same customers back to a given country many times because they emphasise
regularly improving attractions. The nightclub industry plays a catalytic role in job creation
and income creation globally (Eja & Eneyo, 2018; Ekong, 2021; Itu, 2021). Given Nigeria's
decreasing income derived from the oil sector and its alarming unemployment rate before the
COVID-19 pandemic lockdown period, and the unpopular imposition of curfew across many
cities in the country, the sector contributes to the country’s economy is alarming. The study
directly shows the importance of the nightclub industry to Nigeria’s economy.
2013; McCartney, 2020, He, Liu, Wang & Yu, 2020; Şenol & Zeren, 2020; Vanguard, 2020).
Many sectors like the tourism and hospitality sectors have introduced some mitigation
strategies and innovations (as hybrid events, virtual events, and the upskilling of staff) to
continue their operators (Bartis, Hufkie & Moraladi, 2021). Notably, the emerging paradigm
poses a challenge to the economic growth and development of nightclubs in Calabar. Therefore,
the hypothesis stated below will statistically examine the economic impact of curfew
imposition before the curfew and curfew era in the study area. The following hypotheses were
formulated in the null form:
Methodology
The study focused on examining the economic impact of curfew imposition on the nightclub
industry in Calabar Metropolis, Nigeria. Astronomically, Calabar Metropolis lies between
longitudes 80181 and 80241 East of the Greenwich Meridian and latitudes 40401 and 40541
North of the Equator (Figure 1). The city covers 406 square kilometres and an altitude of 15m
above sea level on average (Akintoye, Inah & Odunsin, 2017). It is an inter-fluvial settlement
built between two main Rivers viz; the Calabar River and the Great Qua River. The population
of Calabar Metropolis stands at 191,630 (National Population Commission (NPC), 2006).
Calabar is the most peaceful city in Nigeria. The city has various support services such as
hotels, restaurants, communication facilities like internet services, fast food joints, beverages
services, art and craft/woodworks, drinking spots, swimming pool, car hire services, laundry
services, financial institutions, travel agencies, traditional markets, cultural centre,
entertainment centres like nightclubs, and sporting activities.
For the study to achieve its aim, the causal research method was employed to identify
the cause and effect of the curfew on the nightclub. We used indicators like patronage, income,
and employment to study the economic impacts of curfew imposition in the nightclubs. The
types of data used for the study include data on patronage level, income generation, and the
number of staff employed by the nightclubs during the pre-curfew and curfew era: We also
conducted interviews with experts who are proven human resources on the management of the
nightclub industry in Calabar. We agreed that the most suitable approach to conduct the
interview was to have direct contact (face-to-face interview) with the nightclub operators of
each nightclub before the curfew time in Calabar. In this instance, we conducted an oral
interview using the key informant interview with the operators of each nightclub. The nightclub
operators were the selected representatives of the business in Calabar.
We also used data from authoritative sources such as government reports, nightclub
records and documented literature to investigate the economic impact of curfew imposition on
nightclubs in the city of Calabar. For this significant research, non-probability sampling,
especially purposive sampling was employed. The fifteen (15) nightclubs existing in the
Calabar metropolis were selected purposively for the study. They were also explored to know
the particular issues related to them. Purposively sampling was adopted to select the
representative of each of the nightclubs based on their knowledge, experience, understanding,
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All fifteen (15) nightclub operators were interviewed. The nightclub operators provided useful
insight concerning the industry in its entirety and how the curfew imposition has affected their
business. Their involvement in the research was voluntary, and no nightclub operator was
forced into participating. The oral interviews were conducted face to face with the interviewees.
In other words, the researchers and nightclub operators were able to meet at an agreed time.
Consequently, a range of questions formulated based on the study was put across to the
nightclub operators and they answered accordingly. The information received from the
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interview was later transcribed. The thematic analysis method was used based on the answers
derived from the interview (Fischer & Parmentier, 2010).
Additionally, the descriptive statistical analysis (Mann, 2006) and the tabular methods
such as frequencies, percentages and mean values were used to describe the economic impact
of curfew on the nightclub industry during the pre-curfew era (January 2020 to September
2020) and curfew era (October 2020 to June 2021). In addition, the economic impact analysis
of the Curfew imposition in the study area on the nightclub industry employed a secondary
database sourced from the existing records of the fifteen (15) functional nightclubs in the study
area. This database is the most objective, authentic, and current at this time. The data gathered
were analyzed using suitable techniques and presented in tables using simple percentage. More
so, the inferential statistics (paired sample t-test) was employed to investigate the differences
in the level of patronage, income and employment during the pre-curfew era and curfew era.
Results
In recent times, the imposition of indefinite dusk to dawn curfew in Calabar Metropolis by the
state government has caused the nightclub industry to experience abrupt and unprecedented
damage to the nightclub’s economy. This section presents the data for the study.
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that a total of ₦160, 050, 000.00 (78.9%) was generated by all the nightclubs understudy before
curfew era, which translates to ₦10,670,000.00 annual average income generated by each
nightclub and ₦13, 337500.00 generated per month. This amount depreciated drastically
during curfew era where a total of ₦42,800,000 (21.2%), was generated with the depreciation
of ₦117,250,000.00 (73.0%). This data shows that all the nightclubs in Calabar metropolis
faced the challenge of depreciation in their income by 73.0% (Table 3).
Paired
Differences
Mean Std. Std. Error 95% confidence Upper T df Sig. (2-
Deviation Mean interval of the tailed)
difference
lower
Pai Before 7816666.66 3074298.21 793780.38 6114177.06 95191 9.84 14 .000
r1 curfew & 56.27
curfew
era
Impact on employment
The study also examined the impact of the curfew on the level of employment. The data in
Table 5 indicates that 263 staff were employed in the 15 nightclubs existing in the study area
with an average of 18 employees during the curfew era. This translates to 74.3% of the staff.
Conversely, during curfew era, the number reduced significantly to 93staff with an average of
6 staff which translates to 25.7%. It can be deduced that 170 employees were laid off (an
average of 11 per nightclub) translating to 48.6% retrenchment (Table 5).
a T-value of 10.85 obtained. This t-value is significant at < 0.05 (2tailed). Hence, the null
hypothesis was not supported. The result therefore gives credence to the alternative hypothesis
that there is a significant effect of the imposition of curfew on employment rate by each
nightclub in the study area.
Discussion
The imposition of curfew in Calabar Metropolis continues to have a significant adverse impact
on the business survival and growth of nightclubs directly and the economy of the metropolis
indirectly. This impact is felt in different ways by the nightclubs leading to a sharp decline in
the economic activities of the industry such as patronage decline, revenue and job losses. The
result in Table 1 indicates that the number of customers declined sharply during the curfew era
which by implication has adversely affected the turnover (income and profit maximization) of
the nightclubs (Table 3) thereby threatening their ability to survive as a business and to perform
their legal and social responsibility as the case may be. This result buttresses Harvey (2000)
assertion that the nightlife sector depends on profit generated from the patronage of nightlife
activities. Similarly, the result showed that income before the curfew era was 78.9% and
declined to 21.1% during the curfew era. The hypothesis supports this analysis that income
received before the curfew was significantly more than the one during the curfew era. The
study affirmed that nightclubs have been subjected to legal regulations by the government and
indirectly the regulations affect their outputs (income) and productivities (Dorn, 1983;
Hollands, 2002),
Furthermore, during the curfew era nightclubs had lost up to 272,943 customers for the
past nine (9) months and approximately N11million in revenue. The severity of the impact
continues to be witnessed even as 170 residents out of the 263 employed during the pre-curfew
era become jobless. The result further illustrates that the regulations on restriction of non-
essential movement during the night hours which are essential in curtailing insecurity has
continued to acutely impede the nightclub industry and other entertainment sub-sector
enterprises growth and profitability with a significant proportion of the metropolis’ population
already affected by the policy for example operators of mainly night based Small and Medium
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Scale Enterprises (SMEs). It has also hampered or restricted many residents and visitors to the
metropolis from going to nightclubs and patronizing the products and services of the industry.
The halt or near halt in economic activities due to the curfew also affects the expected income
of the nightclubs resulting in uncertainty and re-adjustment on the part of the operators. In the
light of the above observation, we could state that the growth and profitability of the industry
in the metropolis diminished rapidly as regular customers of the nightclubs find it difficult to
assess nightclub locations after 10 p.m. due to movement restrictions occasioned by the curfew.
In this regard, one notable challenge of nightclubs in the study area is that the drastic
decrease in the economic status and viability of the industry in an environment already
impacted by economic misfortune caused the global pandemic of COVID-19; thereby
contradicting the concept of “urban playscapes” which shows activities of the young people in
nightclubs, bars, and music spots within the nightlife entertainment economy is achievable
(Caldwell, 2005; Chatterton & Hollands, 2002). The theory also contradicts the assumption
that the three interrelated factors of the “Urban playscapes” such as production, regulation and
consumption cannot combine to form a dominant mode of mainstream urban life since the
business and its customers are under threat by the government regulatory policy. The theory of
“Urban playscapes” by implication illustrated that the government has not played a catalytic
role in the development of the night-time economy especially by seeking to strike a balance
between a curfew time and of the activities of nightlife businesses. An example of this is the
imposition of a dusk to dawn curfew by the government which hinders many nightclubbers
from patronising nightclubs in the Metropolis to unwind and recuperate from work and societal
stresses. It further argues the opinion of scholars in a related field that the youths play a peculiar
function in the consumption sphere (Dalyop, 2019; Miles, 2000) and nightlife culture in
particular (Gershuny &Fisher, 2000; Malbon, 1999; Mintel, 2000, 1998). The observation in
the study did not corroborate with the view of Hennessy (2009) that Leisure Time, Community
Attributes, closeness to recreation areas, security and social settings is one of the factors
affecting involvement in nightclubs.
The threat to the industry emanated from the severity of restriction of movement at
night that directly or indirectly affected business activities at nighttime, including the freedom
to the club, have fun, among other factors, after a hectic day. Nightclubs in Calabar Metropolis
like those in other major cities of the world already have to battle with the impact of the adverse
consequences of the global pandemic that resulted in curfew imposition. We opined that the
curfew regulation has had dramatic impacts on the economy in Cross River State, Nigeria and
that of the City of Calabar with some of the outfits considering closure or relocation thereby
further reducing the revenue available to the government of the state. The retrenched workforce
and the reduction in income have created a society with social inequality and a deficit in
nightclub growth and development, a situation that could lead to further social unrest if not
curtailed immediately.
Conclusion
This paper gives a background of the economic impacts of Curfew Imposition on the nightclub
industry in Calabar metropolis, Nigeria. It showed that the business of nightclub in Calabar
metropolis from January 2020 to September 2020 has received high patronage from customers,
generated income, and created employment opportunities for the teeming population. On the
contrary, the industry has experienced a sharp decline in patronage and revenue (about an
N11million) from October 2020 to June 2021, as it is strongly affected by curfew imposition
regulations. Again, the decline in revenue has led to job losses in the industry and a reduction
in the salary of staff, as the business can no longer pay them. Undoubtedly, the decline in
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patronage, income and job losses in the nightclub industry will contribute to an increase in
poverty levels, crime rate and criminality, and a decline in the economy’s GDP.
Having reflected on the past 18 months of pre curfew era and curfew era and taking
into account the challenges experienced by the nightclub industry we wish to state that the
industry is expected to experience a decrease in the number of nightclubs in Calabar due to the
reduction in patronage and income of the industry arising from the imposition of an indefinite
curfew in the city. Again, due to the curfew imposition regulations, customers will likely prefer
to drink alcoholic beverages at home rather than at the club level. Therefore, the following
recommendations ought to be considered with the indefinite curfew still enforced by the Cross
River State government.
Firstly, given the importance of nightclubs to the state’s economy, we think it is very
important that the relevant agencies within the state and government find ways to review the
long imposed curfew with a new time frame from 12midnight to 5 am so that they can achieve
their economic growth. Secondly, they should also consider a periodic review of the curfew
regulation on the metropolis to prevent the dearth or relocation of nightclubs from the state
capital, which will invariably lead to a poor image of the city. Thirdly, the government,
financial institutions and organizations should provide interventions, bailout funds such as
grants and a low-interest loan to distressed nightclubs to revamp their businesses. These could
include tax waivers or rebates to nightclubs for a determined period as well as to other nighttime
sectors, to boost their income. Fourthly, stakeholders should urgently establish a roadmap for
training and capacity building for the different categories of personnel of nightclubs to equip
them with innovative and creative skills for running a viable business of that nature during
curfew regulation and public health crises to ensure the business remains economically viable
and relevant to the economic development of the metropolis and Cross River State in general.
The study concludes with more limitations than the other studies because of the paucity
of literatures and data on curfew imposition in Calabar Metropolis. Besides, the city is still
experiencing an indefinite imposition of dusk to dawn curfew, which is creating severe
economic challenges across the state and the country at large. This study is to be continued in
the future with the availability of statistical data to the researcher. Again, more targeted
research ought to be conducted in the nightclub industry to determine the mitigations strategies
and innovation measures adopted by the nightclub industry to survive during the curfew era.
The present study concludes with the currently available data as it faces difficulty in gathering
adequate data for the analysis.
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