Fuel prices, electricity tariffs, unstable food costs, and looming taxes are threatening the survival of SMEs in Abuja.
Small business owners in the Federal Capital Territory (FCT) have raised alarm over the escalating cost of doing business, warning that the current economic realities under President Bola Tinubu’s administration, widely dubbed Tinubunomics, are unsustainable for micro and small enterprises.
In interviews with the News Agency of Nigeria (NAN) on Sunday, traders, artisans, and entrepreneurs across Abuja decried multiple challenges, including high energy costs, inflation, poor infrastructure, and tax burdens that are squeezing their already thin profit margins.
This is despite data from the National Bureau of Statistics stating that the inflation rate printed 20.12% lower than the 21.88% reported a month earlier.
While the rate of inflation has been falling on a macro level, prices still remain astronomically high for a lot of Nigerians, including SMEs.
Mrs. Grace Okon, a fashion designer in Wuse, lamented the high costs of electricity and fuel, which are eating into her earnings.
Similarly, Mrs. Esther Cletus, who runs a dry-cleaning service in Apo Resettlement, said most of her business income now goes into electricity bills.
Mr. Musa Abdul, who operates a mini-restaurant in Garki, noted that while the prices of some food staples have temporarily eased, volatility remains a major concern—compounded by tax policy uncertainty.
Poor infrastructure is another key concern. Traders like Mrs. Nembam Atule cited bad roads and inadequate market facilities as reasons for reduced customer access and inflated product prices.
Salon owner Mrs. Rashida Sule, based in Nyanya, fears the Federal Government’s proposed tax reforms would make things worse.
According to financial analyst David Alabi, interviewed by NAN, these trends signal a potential crisis for Nigeria’s small business ecosystem.
Economist Mrs. Jessica Onwa echoed similar concerns. She warned that while tax reforms are necessary for fiscal sustainability, they should not come at the expense of productivity and economic inclusion.
The Federal Government’s tax reform plan, scheduled to take effect in 2026, is already drawing concern for its potential to derail the survival of SMEs amid harsh economic headwinds.