Power Sector Crisis Has Increased Our Operating Cost, Slashed Profit Margin By Over 50%, Business Operators Lament

Operators of businesses in the Federal Capital Territory have said that they are struggling to survive due to the electricity crisis which started in February this year.

Small businesses are the worst hit as they can barely afford the cost of switching to alternative energy source like solar power.

Nigerians are also facing high diesel prices used to power their generators amid the worsening power crisis.

The national grid collapsed twice in two days between March 14 and 15 which led to total blackout in the affected areas.

Diesel is trading at N725 per litre as a result of the Russia- Ukraine war, while the government has banned selling of fuel in gallons to check black market activities.

Business operators that buy fuel in gallons to run their generators can no longer buy from filling stations due to the ban.

The government has enforced the retail price of N165 at the filling stations, but Small and Medium Enterprises who have no diesel or PMS supply contract with filling stations are relying heavily on the illegal black market.

Popular Abuja Suya and beverages spot has also seen its profits eroded due to the power crisis.

The Gwarinpa branch manager of Yahuza Suya Spot, Adamu Muhammed told THE WHISTLER that, “Almost all of our operations are done with light. We freeze our meat, run an automated payment system.

“We spend almost N15,000 every day on 30 litres of fuel from the black market. We run our operations from 8AM to 3AM on daily basis and we use two generators- one as a substitute.”

Muhammed said the firm has spent about N450,000 in the last one month to run generators. He said before the crisis, the amount spent was about N150,000.

The Gwarinpa branch have seven fridges and the activities at the locations usually get to their peak at night.

He said, “Our profit has been cut by around N450,000 monthly. Before the crisis, we spent around N5,000 for the same 30 litres.

“They brought chicken for suya and we only bought 20 bags because of the light issue. Before, we used to buy between 30 to 50 bags.

Hair and beauty salons also rely on electricity and some operators have either reduced their operating hours or increased their prices.

Some saloons have reduced their working hours, according to Victor, a barber who spoke with THE WHISTLER.

He said, “I don’t work during the day time because of the light issue. I cant afford to power my generator set. Life has been difficult for me since the crisis started. I no longer work during the day.”

A supermarket operator in Gwarinpa, Abuja said she spent over N60,000 to buy fuel to power her power generating set in a month.

“We have never spent half of that amount since we started operation,” said Rita.

Rita said in some days, she gets less than two hours of electricity and have to run her generators to freeze ice-creams and beverages.