BUSINESS
Small Business Owners Lament High Cost of Doing Business
Some business owners in the Federal capital Territory (FCT), have expressed concern over the high cost of doing business presently.
According to them, they are also experiencing low patronage as many residents can no longer pay for goods and services like before.
The business owners said on Wednesday in Abuja, that the cost of doing business was making life extremely difficult for them.
They said increased transportation, cost of living, inflation, and weakened purchasing power were some of the challenges affecting their businesses.
At the Apo Fish Market, Agnes Nwafor, a foodstuff dealer, said the current economic situation had dampened the usual weekend buzz.
“People who usually come to my shop to do bulk purchases no longer do that anymore. People now buy goods per time depending on their needs.
”So many others who come around enquire about the prices of the items and end up not picking anything,” she said.
Sani Abdul, a vegetable seller at the Apo market said he had cultivated the attitude of selling almost below his cost price just to turn-over and attract more customers.
He lamented that most of his customers now purchased things on credit paying up in two or three installments depending on the amount.
”With the low influx of customers to the market today, one will think that this is not even weekend.
“Some of my co-traders in the market sell a dust bin basket of tomatoes for between N10,000 and N12,000 but I sell for N9,500, just to attract customers.
“Most customers who come to the shop either want the price of the items slashed or want to buy the product on credit and I do not blame them,” he said.
He urged the government to come to the aid of citizens and find a lasting solution to the increasing cost of doing business in the country.
Ekaite Obong, who runs a restaurant at the Gudu market area, also decried high cost of doing business and poor sales.
Obong said:” it seems like the sales keep dropping every day, every week and every month. We are not making sales anymore due to high cost of products.
”Purchasing some food items now is like acquiring gold. Even items which the price ordinarily is supposed to decrease due to its season of cultivation have not declined.
“Thus, making the cost of food high, because we have infused a little profit to our sales. So I do not blame the customers who don’t turn out in mass at all.”
Obong urged the government to tackle inflation and strengthen the naira to reduce the cost of imported goods.
“We also need policies that help local farmers and producers too. If food items are affordable, cost of food will reduce and I am sure we will get more patronage,” she said.
Similarly, Chinedu Umeh, who runs a fabric store said the situation in the country had affected both his wholesale and retail business.
“The economy is biting hard, cost of transportation is killing our businesses. The government really needs to look into this area and find a lasting solution,” he said.
Umeh suggested tax relief for small businesses and better access to credit financing to help cushion the impact of reduced sales.
“Small businesses are the engine of the economy, but we are sinking. Government must listen to us, and come to our aid,” he said.
Owoicho Ameh, who owns a farm along airport road, also decried the high cost of doing business and low sales.
Ameh said: “it is no longer business as usual for us these days as the cost of chicken feed, electricity and even transport is challenging our business.
“We struggle with these factors even with our little resources, yet, at the point of sale, customers are either not willing or able to buy.
“This is because, when we factor in our cost of production, it leads to increased cost of the birds, making many customers not able to afford it.”
Ameh said on several occasions, he sold his birds at giveaway prices, just to make sales and get funds to take care of family responsibilities.
He lamented that if he continued in that manner, he may likely go out of business in the nearest future and become jobless.
“The government sincerely needs to take urgent steps to improve the economic climate, improve infrastructure and boost the people’s confidence.
“If this is not given immediate attention, the rate of suicides is bound to increase in the country and the number of jobless citizens will increase,” Ameh said.
The Transmission Company of Nigeria (TCN) has announced the tripping of the 100 Mega Volt Ampère (MVA) TR4 transformer at the 132/33 Kilo Volt (KV) Apo Transmission Substation.
The management of the company announced this in a statement on its X handle in Abuja on Wednesday.
According to TCN, preliminary findings indicate oil spillage on the Red Phase HV bushing of the transformer.
“Four 33kV feeders, including feeders H31, H33, H35, and H37 are currently out of supply.
“Our maintenance crew are already carrying out a detailed investigation on the transformer, to ascertain the exact cause of the tripping to enable TCN effect repairs and restore back the transformer.
“We regret the inconvenience this may cause Abuja Electricity Distribution Company (AEDC)’s customers supplied from the affected feeders,” it said.
The company also assured the affected customers that its engineers were doing everything possible to ensure a quick restoration of bulk power supply through the affected transformer.(NAN)
The Executive Secretary of the Economic Commission for Africa (ECA) said productive capacity, AfCFTA and investment are key to accelerating sustainable graduation of African Least Developed Countries (LDCs).
The ECA Executive Secretary, Claver Gatete, said this in a statement on Wednesday in Abuja.
Gatete spoke at the Africa Regional Ministerial Mid-Term Review of the Doha Programme of Action (DPoA) 2022–2031 in Addis Ababa.
He said 32 of the world’s 44 LDCs were in Africa, making the continent’s progress critical to the success of the DPoA.
Gatete acknowledged progress in women’s parliamentary representation, child survival, water and sanitation, electricity access and internet usage since 2021.
He, however, said progress remained uneven, with social protection coverage declining from 9.4 per cent in 2021 to 8.6 per cent.
He said that food insecurity had worsened, while African LDCs continued to account for less than one per cent of global merchandise trade.
According to him, value added manufacturing accounts for only about nine per cent of GDP, while infrastructure and digital gaps constrain productivity.
Gatete said limited productive capacity was restricting industrialisation, job creation and economic resilience across African LDCs.
He stressed the need to invest in reliable energy, transport infrastructure, skills, digital connectivity and technology to strengthen productive capacity.
The ECA chief also called for accelerated industrialisation and diversification to reduce dependence on commodities and low-value economic activities.
He said productive capacity must be matched with access to larger markets, stressing that African LDCs could not transform within domestic markets alone.
Gatete identified the African Continental Free Trade Area (AfCFTA) as an opportunity to create regional value chains and expand markets for African businesses.
He said regional integration would help African LDCs diversify, become more competitive and strengthen their participation in the global economy.
On financing, Gatete said domestic resource mobilisation remained important but could not on its own meet the investment needs of African LDCs.
He called for greater access to affordable, predictable development finance and increased private investment in productive sectors.
Gatete urged international financial institutions and development partners to respond to the specific circumstances and financing challenges facing LDCs.
He said graduation should not merely involve crossing a statistical threshold but should deliver stronger economies, greater resilience and sustainable development gains.
According to him, the ministerial review should identify concrete measures for accelerating DPoA implementation during its remaining years.
He said the outcome would contribute to Africa’s position at the global mid-term review of the DPoA scheduled for Doha next March.
He urged participants to present evidence of progress, identify challenges and develop practical solutions aligned with the ambitions of Agenda 2063.
“Building productive capacity, expanding markets through AfCFTA and mobilising investment remain critical to accelerating sustainable graduation.
“The measures will help deliver lasting development gains for Africa’s Least Developed Countries,” he said.(NAN)
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) said its proposed oil and gas investment summit in China will showcase Nigeria’s investment opportunities and promote partnerships to boost revenue and economic growth.
The Chairman of RMAFC, Dr Mohammed Shehu, disclosed this at a Stakeholders’ Breakfast Meeting with the Oil and Gas sector, ahead of the proposed summit to China, in Abuja on Wednesday.
Shehu said the summit would showcase investment opportunities across Nigeria’s upstream, midstream and downstream petroleum sectors, adding that it would attract investments into the petroleum sector.
According to him, the summit will provide investors with information on ongoing reforms, technological innovations, financing options and policies aimed at improving the ease of doing business.
“The initiative is part of the commission’s constitutional responsibility to advise governments on fiscal efficiency and ways to increase revenue.
“The commission will work with relevant government agencies and stakeholders to ensure the success of the proposed summit,” he said.
Shehu said that Nigeria’s abundant hydrocarbon resources, strategic location and vibrant population presented significant opportunities for investment in the oil and gas industry.
He, however, emphasised the need for deliberate collaboration among government institutions, investors, industry operators, financial institutions, host communities and development partners.
The RMAFC chairman said the commission had visited China in preparation for the summit and held meetings with Nigerian diplomatic officials, trade representatives and event consultants.
He said the commission was encouraged by ongoing Federal Government reforms aimed at strengthening investor confidence and creating a predictable regulatory environment.
“The summit will facilitate business-to-business engagements, policy dialogues, investment matchmaking, technical exhibitions and networking opportunities,” he said.
Shehu said the engagements would help foster long-term partnerships, increase local content participation and create employment opportunities.
He urged stakeholders to contribute ideas and recommendations that would help the commission organise a summit capable of attracting quality investments to Nigeria.
He expressed confidence that the collaboration among stakeholders would help project Nigeria’s investment potential and contribute to the country’s economic transformation.
The Executive Commissioner, Development and Production, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Enorense Amadasu, said Nigeria’s upstream oil and gas sector offered significant investment opportunities following reforms and interventions by President Bola Tinubu’s administration.
Amadasu said the petroleum Industry Act and recent presidential executive orders had created opportunities for investors, adding that the commission was working to increase reserves, production and investment in the sector.
Mallam Rabiu Umar, Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the Petroleum Industry Act was focused on adding value to Nigeria’s midstream and downstream oil and gas sectors.
Umar commended the organisers for promoting investment and assured investors of the agency’s regulatory support to facilitate investments in the midstream and downstream sectors.
He was represented by Dr Priscilla Ekpe, Head, Investment Promotion Economic Regulations and Strategic Planning Directorate.
Rear Admiral Patrick Effah, Chief of Operations, Nigerian Navy, said security was critical to revenue generation, adding that a safe maritime environment is necessary for trade and commerce.
Effah said the Navy would continue providing security across Nigeria’s maritime corridors to boost investors’ confidence and attract more investment into the country.
The Governor of Enugu State, Peter Mbah, said the state was committed to developing its natural gas assets to drive industrialisation and economic growth across the South-East.
Mbah was represented by Mr Enyima Ogbonna, Commissioner for Energy and Mineral Resources
He said the state had invested heavily in security and infrastructure, making it prepared to attract investors through the upcoming summit in Beijing, China. (NAN)
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