Since August 2020, Nigeria鈥檚 Government Enterprise and Empowerment Program (GEEP) and with the support of the Rockefeller Foundation have been administering a survey to GEEP clients to understand how COVID-10 impacted their personal and economic situation. An interim report has been published, and it shows that the Nigerian informal sector was adversely affected by the outbreak. 9 out of 10 GEEP clients recorded drops in their income levels, businesses struggled to stay afloat due to government-imposed closures, low footfalls and constrained supply chains. To survive, GEEP clients had to rely on their savings, borrowed heavily and reduced percentages set aside for household and business savings or stopped outrightly. The data also showed that 35% of GEEP respondents had to close down their businesses, 66% recorded fewer customers and 84% have been using their savings to cope with current hardships. We decided to examine how everyday Nigerians, particularly small business owners were affected by the pandemic. One story every week for the next six weeks.聽
The subject of this week鈥檚 Coping In A Pandemic is a widow with three children. She talks about starting her businesses, how Covid-19 has affected her income and her current struggles with paying her rent.
Do you remember when you started this business?
15 years ago. I started as a salesgirl for someone at the mammy market in a barrack. My pay was 鈧4k per month. The good thing about the job was that it was a good way to learn the business, and I almost always made more than my salary per month.
How?
My boss had his price, and I had my price. I could add a little to the price of cartons of frozen foods I was given to sell. And we sold hundreds of cartons every month, so it was easy to make my own money. I think I got up to 鈧1k on every carton I sold.
So, you were making up to 鈧100k per month?
On a good month, yes. I鈥檝e always been good at saving, so I was always putting money away. The job was good, and I was learning and understanding how the business worked. We brought the goods in from Seme and sold them here. I was with him for six or seven years. By the time I was leaving, I鈥檇 saved enough to buy a shop in the same market and a car I could use for business 鈥 a Golf 3.
Wow. How much did you buy the shop and the car?
I bought the shop for 鈧200k, and the car was about 鈧700k. Now that I had everything to go out on my own, I left the job and started going to buy the frozen goods, mostly chicken and fish.
That鈥檚 great.
My husband and I would drive to Seme for the products, and because I had a shop, sales were good. I also supplied people. Life was really good. At least, I could conveniently pay my kids鈥 school fees and house rent. No wahala at all.
Then I went to Seme one time, and they seized my car and goods.
Ah, why?
Customs oh. After some back and forth, they released my car, but they held onto my over 鈧200k worth of goods. I had used all the money I had for business on that trip.
Ah.
As if that wasn鈥檛 enough, my husband decided that we had to sell the car.
Why?
He said he wanted to travel to the US. I think he sold it for 鈧450k. I don鈥檛 even know how he got the rest of the money. I guess he travelled to the village and sold a few plots of lands. Do you want to know what happened after?
Tell me.
He came back home after some time. It didn鈥檛 even take long. He said one paper was not correct, so he had to come back. And he came back empty-handed. All that money went down the drain.
I鈥檓 so sorry about that.
It didn鈥檛 end there oh. He started talking about how disrespectful I was to him. He packed and left. I heard he went to Abuja first, then went to the village. He left me with three kids. My last daughter was one year and three months at the time. I couldn鈥檛 reach him 鈥 his number was always switched off.
He didn鈥檛 come back till he died about six years ago. It鈥檚 been me and my kids since that time.
Wow, I鈥檓 so sorry.
Life became harder for me. I was not doing any business, and I had no money to do it. Since my husband died, his family has never checked up on me or offered to give me 鈧5. They made it clear that my girls and I don鈥檛 matter to them, and we would have to figure our lives without them.
I didn鈥檛 have money to go back to the business until 2016.
How did you pick it up again?
I joined , and they gave me a 鈧100k interest-free loan to start my business again. I went back to my shop and picked up where I left off. Whatever I made from it, I put it back in the business. And I was there until I had to sell the shop in 2018.
What happened?
I was going through another rough patch and couldn鈥檛 make rent. The pressure the landlady put on me was a lot, and I couldn鈥檛 let her kick us out. I had to put my children first. Rent was 鈧200k, so I sold my shop to get the money. With the shop gone, I moved my freezer home and continued my business from there.
How much did you get for the shop?
鈧300k. What remained after I paid rent went to their school fees. Two of them were in secondary school already at the time, and their tuition was 鈧37k each.
I鈥檓 curious, how much did you make in sales every month at the time?
At least 鈧50k. It never went below that.
Did you have enough to save after meeting your basic needs?
I鈥檝e always been very particular about saving. You know what I used to do? Ajo. I put 鈧500 in every day and 鈧100 for each of my kids. I don鈥檛 touch that until the end of the year, and that鈥檚 what I used to settle rent. But it didn鈥檛 work out in 2018. That鈥檚 why I had to sell my shop.
What about loans? Did you have access to those?
Ah, I fear loans a lot. The mere mention of loans with interest gives me a panic attack. I鈥檇 rather borrow money from people and agree to a payment plan. Those kinds of loans where you will pay excess money in interest put people in trouble. I can鈥檛 touch it.
Anyway, I didn’t need to take those kinds of loans. I was managing just fine with my savings until Covid came.
2020.
Covid did a lot. Sales declined rapidly during the lockdown. I couldn鈥檛 go out to supply and the light wasn鈥檛 good, so most of the goods I had in my freezer spoiled. Thank God for Mamamoni; they took care of food and supplied foodstuff for me and my girls. They also gave me another 鈧50k interest-free loan to start another business. This was lifesaving. I travelled to Ogun state to buy cassava, and I also bought a gas cooker. That鈥檚 how I started selling fufu. And I鈥檓 still doing it now.
How much has this been bringing in?
I have small small customers I supply to, but It depends on the market and the number of people I can supply in a month. But on average, I鈥檝e been making about 鈧20k per month since I started last year.
That鈥檚 different from what you used to make every month. How has this affected things?
I couldn鈥檛 continue my Ajo last year. What this means now is that I may not meet this year鈥檚 rent. And the landlady has increased it to 鈧250k. I told her that I cannot afford that, and she was like, 鈥淚f you cannot pay, move out.鈥 I don鈥檛 know how it will work out because I have only 鈧50k. I鈥檝e asked her for more time to do what I can do to find the 鈧200k. I believe in miracles. One of my daughters is writing an exam this year, and I had to pay school fees 鈥 about 鈧50k. When finding the money to pay for school fees was becoming a problem, God sent someone to give me 鈧70k. I don鈥檛 know the lady. Someone just told her about me, and she decided to help.
That must have been a huge relief. Do you ever want to go back to selling frozen food items?
Yes, I was making more money from that. Also, the stress of selling fufu is too much. It takes a lot of strength to turn the cassava, and the pain that comes with it is too much. I got sick one time, but I couldn鈥檛 stop because I needed all the money I could get.
How much do you think you need to go back to it?
Everything is expensive now. A carton of chicken used to be as low as 鈧8k, but it鈥檚 almost 鈧18k now. A carton of fish is even more expensive. And also, I can鈥檛 go on that Seme road again because of Customs. They treat you like you鈥檙e carrying cocaine and seize your goods. I can鈥檛 deal with that stress. Although things are cheaper there, I鈥檇 have to buy locally. I also need a generator 鈥 Nepa has shown me a lot. I鈥檇 need at least 鈧200k to return to the business.
As it is now, won鈥檛 a bank or microfinance bank loan be helpful for you?
As I said earlier, these loans that come with interest are not for me. Some people will add interest so high that the thought of paying it back will give you high blood pressure. I don鈥檛 want to be one of those people who take a microfinance bank loan and start hiding when the collectors come. I cannot do it. It will kill me.
It鈥檚 not like I don鈥檛 have the power to collect a loan, I just don鈥檛 want to. If I had a shop now, I might consider it. I鈥檒l just concentrate on this fufu thing I do for now and hope things open up soon. I know how to do business very well and make the best use of money, so my children and I will be fine.
What aspect of your finances do you think you could be better at?
Savings, maybe. I couldn鈥檛 save last year, and that鈥檚 affecting a lot of things now. If I can save more, that can help prepare me for something like Covid. That being said, It鈥檚 hard raising a family alone. I don鈥檛 know how I鈥檓 taking care of these responsibilities. But God has been helping me through a lot of people.
With everything that has happened in the past year, would you say you鈥檙e happy?
Why wouldn鈥檛 I be? There鈥檚 life, and there鈥檚 always hope. Also, I鈥檓 watching my kids grow, and that means everything to me. My house rent is the only problem now. When I settle that, I鈥檒l be happier.
