Fuel costs have tripled, the naira has hit record lows, and inflation has skyrocketed in the last two months.
Profitable business operations in Nigeria are more challenging than ever. We spoke to several small business owners on the streets of Lagos on Wednesday to learn how they are coping with the situation.
This has had a significant impact on them. The majority had to raise retail prices, some had to take a break, and some simply stopped business.
“I sell materials for interior design, and since a lot of my suppliers have to import their products, my business depends on foreign exchange. Since June, the expenses of my suppliers have increased fourfold, requiring a corresponding increase in my retail prices. Just two months ago, I used to sell a tiny flower vase for N6,000. Today, it’s worth N18000–N20000. I cannot afford to change my prices, despite the dissatisfaction of my clients and the sharp decline in my sales, stated interior designer Blessing.
The difference hasn’t been that significant because my plant business only began running in April, but delivery prices have increased, according to Ezekiel, the owner of a plant store.
“When we first started, we could carry packages through Uber from our workplace in Ikeja to island for N3,000, but drivers no longer accept payments of less than N5,000. He said.
“The price of decorative products like white stones and plant pots has also gone up, which naturally raises the selling price. We told our consumers about the price rise and higher delivery expenses, and happily, they were able to comprehend. He added.
“I owned a supply store for almost four years before closing it last month. Since last year, sales have been difficult, but this year has been extremely difficult, said Mrs. Akinola.
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“My distributor used to let me purchase goods from her on credit with the understanding that I would pay her back when I needed to make additional purchases, but now she won’t do it. Additionally, the economy isn’t pleasant at all, so it’s not her fault. Due to the intermittent power, I am still unable to sell the drinks I have in my freezer, and I lack the funds to constantly refuel my generator. Later, I’ll figure out how to dispose of them. I’m just sick and tired of selling at a loss right now. She lamented.
“I sell food, and to keep up with demand, I typically cook twice a day. However, due to the high expense of food as well as supplies like plastic spoons, nylon, and “takeaway” plates, I’ve had to restrict my cooking to just the mornings. Customers grumble about the smaller portions of food, and some even eat for free. Mama Sukura, a roadside food vendor, lamented, “I’ve gone from making about N20,000 in daily profit to about N10,000, and it’s hard to keep up.”
