Our Businesses May Shut Down, Small Business Owners Lament Fuel, Electricity Tariff Hike

Small Business owners have lamented the impact of the increase in fuel price and electricity tariff, saying that they are struggling to keep up with their cost of operation.

The fuel price increase was announced following the Federal government’s removal of fuel subsidy.

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The new electricity tariff which commenced on September 1, according to Nigerian Electricity Regulatory Commission, was based on the hours of electricity supply available to customers. Based on the new electricity tariff regime, those receiving more than 12 hours of supply are expected to pay more for electricity.

Findings by THE WHISTLER showed that operators of small businesses appeared to be the worst hit, as they lament the impact of the price increase on their activities.

James Tayo, of TY Barbers’ Shop in Durumi, Abuja, said in a chat that the hike in electricity tariff and the rise in fuel price have increased the cost of daily operation in his shop.

He explained that his daily cost no longer matches up with his revenue compared to how it was previously.

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He said, “This increase is hard on small shop owners like us, you know we use both fuel and electricity. Before now, I can use N2,000 worth of electricity and N2,500 fuel for an entire week, but it’s no longer possible.

“Even if we reflect the cost on the amount we charge customers, it will still not go far, I can’t even pay those working for me the way I used to do. This is bad.”

Speaking further, Tayo called on the government to come to his aid, by intervening to reduce the costs.

Suleiman Idris, also expressed his dissatisfaction to THE WHISTLER, saying that the cost of running his business has skyrocketed with the cost of electricity tariff.

Idris who is the Chief Executive Officer of ID Cyber Cafe, Garki, Abuja, said that he has been counting losses in the past two weeks, due to the fuel price and electricity tariff increases.

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He said, “Business has not been the same since this Covid-19 pandemic. We do not expect our government to allow this kind of policy at this particular time when we are struggling to come out from the Covid-19 crisis.

“If I had my way, I would have closed the shop for a while because there is no profit in this business anymore.

“We pay transportation cost. Before now, if I pay N2,000 for power, I get more than 50 units but now, that amount cannot even give me 20 units, coupled with the current cost of fuel.

“I hope I’m not the only one seeing this thing, with the way things are going in this country, many businesses would be forced to shut down.”

Speaking on the development, a former Director-General, Abuja Chamber of Commerce and Industry, Dr Chijioke Okechukwu, explained that while the government through its monetary policy is making efforts to see that small businesses thrive and recover from the impact of the COVID-19 pandemic, the increase in fuel price is hitting hard on their operating cost.

“The impact of the increased fuel price on small businesses cannot be overemphasized, many of them may be forced to shut down, because the increase will push up their cost of operation.”

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He however said that with 60 per cent reduction in revenue, the Nigerian government will continue to do everything possible to reduce its burden, adding that bringing back subsidy may not be an option for the government as the economy has remained unstable.

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