Businesses in Nigeria are grappling with severe challenges as inflation and economic difficulties take a toll on their operations, according to Daily Trust.
Abubakar Adamu, a fruit seller in Abuja, highlighted the impact of inflation on his business, noting a significant drop in customers and reduced demand for fruits.
“Inflation has affected my business. Businesses are not moving, including this one.
“Demand is low now. In the past, N20,000 could buy 20 pieces of medium-sized watermelons. But now, even N35,000 cannot buy that. Very few customers can afford fruits. They are after food.
“Now I am only in this business to get something to buy food. We are just managing. For almost three weeks, I have not sent even a dime to my family,” lamented Adamu.
His struggles mirror the broader economic challenges faced by businesses across Nigeria.
In 2023, the country experienced soaring inflation rates, averaging 24.52%, reaching the highest point of 28.92% in December.
Muhammad Hasnul-Basriyyu, a tailor and clothing materials dealer, is struggling to pay his workers, who are mostly students in higher educational institutions.
He said that he had been counting losses since the exchange rate went berserk.
Hasnul-Basriyyu said, “The prices of most of the materials we use have increased by more than 50% because of naira devaluation and oil subsidy removal.
“I have stopped buying some materials because of the increase, and we buy some materials in pieces. I don’t stock up any more. I can’t afford this.
“In fact, in many aspects of this business I have recorded losses. This is the reason I don’t buy plenty of materials now. Things we used to buy at N200,000 have now increased to N400,000.
“You know there is no way we can increase the price of our services when people are struggling for food. Of course there are still people that can afford to sew new clothes. Nothing will affect this category of people.”
He noted that a reduction in his income is one of the main challenges facing his business.
“Now we are not talking of saving, but what to eat. I struggle to pay most of my workers now,” he added.
He called on the government to consult economic experts who genuinely want to see the economy grow.
He said, “The government should come up with interventions which would reach the common man. People are suffering.”
Abubakar Nafiu DanMashi, another tailor, has lost many customers to the galloping inflation that erodes their incomes and prevents them from prioritising clothing.
“Inflation has largely affected me. Before, the type of thread we used to buy at N800 is now more than N1000. Customers would not add even a penny. This is the main problem. The price of every material we buy has increased.
“I had about 100 customers before the subsidy removal and naira devaluation. Some of them no longer even care to sew new clothes. Their attention is now totally on food,” he said.
Sagiru Ibrahim, a Kano-based grocer, said that inflation would force many grocers to close shops in the state.
According to him, prices rise on a daily basis and he is facing inadequate cash flow.
“For example, there is an increase of N1,000 on every box of Cherie Instant Noodles Chicken Pepper. The price keeps on increasing.
“Sometimes we get an increase of N3,000 on a 50kg bag of sugar in a day. Sometimes the profit is not more than N1,500 on every bag, and you have to add N5,000 to get a new one the following day.
“If you used N150,000 to stock up in the last few months, now N300,000 cannot do that,” he lamented.
Hudu Sani who sells Jallabiyas, caps and praying mats said that he sometimes spends the whole day without selling an item.
Sani said, “We are facing serious challenges. Dealers raise prices every day. They justify it with the volatile exchange rate, even though the goods may be an old supply. They hoard them.
“We have been counting losses. A N7,000 worth jallabiya now costs N8,000 and when we sell at N9,000 we get N500 or N700 profit.”
Hudu said that the number of his customers has dropped drastically.
