Within the space of two months, fuel prices have tripled, the naira has fallen to record lows and inflation has gone through the roof.
Now more than ever, doing business profitably in Nigeria has become even more difficult. How has this affected small business owners? I spoke to a number of them about how they鈥檙e staying afloat during this period.
Some have had to increase retail charges
鈥淚 sell decorative flowers, and my business depends on foreign exchange because many of my suppliers have to import the products. Since June [2023], prices from my suppliers have doubled, and I鈥檝e had to do the same for retail. For example, a small flower vase that I used to sell for 鈧9k just two months ago is now 鈧17 – 18k. My customers are angry, and sales have reduced drastically, but I can鈥檛 afford to charge lower. If I sell everything at a loss, how would I restock?鈥 鈥 Glory, Flower shop owner
鈥淚 deal with electronics, which means I need constant electricity so prospective buyers can test the products. Before now, I spent around 鈧7 – 10k weekly on fuel. Now, I ration my fuel usage but still spend close to 鈧21k weekly. I鈥檝e had to increase my prices by 30% to meet up with the operational costs. I may even have to increase it again because supply has also become more expensive. I have to transport my products from Lagos to Ekiti, and shop rent is still there o.鈥 鈥 Nedu, Electronics dealer聽
鈥淭he difference hasn鈥檛 been that much because my only started operating in April [2023], but delivery costs have risen. When we started, we could do Uber delivery from our location at Surulere to Lekki at 鈧3k, but now, drivers don鈥檛 accept anything less than 鈧4,500. The cost of decorative items like plant pots and white stones have also increased, which of course, increases the selling price. We informed our customers of the price change and increased delivery fees; they鈥檝e been good sports about it. We also try to give a subsidy of sorts on delivery by paying a percentage of the cost so it鈥檚 not too costly for our customers.鈥 鈥 Tobi, Plant and furniture business owner
Others have had to take a break
鈥淚nflation is dealing with me, not the other way around. I market bags on WhatsApp for a commission fee from a wholesaler, but sales have been really bad for about two months. The prices have doubled, and people are looking for what to eat, not fashion. In a good month, I used to make around 鈧40k in commissions, but I鈥檝e not sold anything since July. I just want to take a break and re-strategise.鈥 鈥 Becca, Fashion entrepreneur
鈥淚 sell food, and I normally cook twice a day to meet up with demand. But I鈥檝e had to limit my cooking to only mornings because of the high cost of food and items like plastic spoons, nylon and 鈥渢akeaway鈥 plates. Customers complain about the reduced food quantity, and some even eat on credit. I鈥檝e moved from making around 鈧6k in daily profit to about 鈧2k. It鈥檚 hard.鈥 鈥 Iyabo, Roadside food seller
Others just closed down
鈥淚鈥檝e had my provision store for about three years but closed it down last month. Sales have been challenging since last year, but 2023 has been something else.
I used to get items from my wholesaler on credit with the agreement to pay back when I need to buy more, but she鈥檚 now refusing to sell on credit. And it鈥檚 not her fault; the economy isn鈥檛 smiling at all. I still have drinks in my freezer that I haven鈥檛 been able to sell because the limited power supply means they can鈥檛 get cold, and I don鈥檛 have money to fuel my generator regularly. I鈥檒l find a way to sell them off later. For now, I鈥檓 just tired of selling at a loss.鈥 鈥 Gold, Provision store owner
鈥淚 started making natural hair care products in January, but I鈥檓 stopping this month because it鈥檚 too expensive to keep up. I was still struggling to build my client base when the cost of production went up. For example, a cream I sell for 鈧4k used to cost 鈧3,200 to produce. Now, it costs 鈧4,100 to produce. How do I tell the customers I鈥檓 still trying to keep that I鈥檓 increasing prices just seven months after I started selling?鈥 鈥 Moji, Haircare entrepreneur
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