Abuja SMEs has cried out as rising fuel, electricity, and tax burdens threaten business survival.
NewsOnline Nigeria reports that small and medium-sized enterprises (SMEs) in Abuja are warning that skyrocketing operational costs could push many out of business as President Bola Tinubu’s economic reforms widely dubbed Tinubunomics continue to bite.
Despite official figures from the National Bureau of Statistics (NBS) showing inflation easing to 20.12% from 21.88% the previous month, business owners say food, fuel, and electricity costs remain crippling, alongside looming tax reforms set for 2026.
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Daily Struggles for Business Owners
In interviews with the News Agency of Nigeria (NAN), entrepreneurs, traders, and artisans voiced frustration over rising energy bills, policy uncertainty, and weak infrastructure.
Grace Okon, a fashion designer in Wuse, lamented spending more on fuel than on materials.
“Once I increase prices to cover costs, customers complain or stop patronizing me,” she said.
For Esther Cletus, who runs a dry-cleaning shop in Apo Resettlement, electricity has become her biggest expense.
“It’s not easy doing business anymore nothing is stable,” she said.
Musa Abdul, a restaurant operator in Garki, added that food price volatility, coupled with the fear of new taxes, threatens to drive small businesses into extinction.
“We’re barely surviving. If new taxes come in 2026, many of us will shut down,” he warned.
Infrastructure Gaps, Policy Uncertainty
Traders also cited poor road networks and weak market facilities as drivers of inflated prices.
“Food may be cheap on the farm, but by the time it gets to Abuja, it has tripled because of transport and bad roads,” said Nembam Atule, a local trader.
Salon owner Rashida Sule, based in Nyanya, fears that additional tax reforms would worsen the crisis.
“We already pay multiple levies. More taxes will kill our businesses,” she said.
Experts Sound the Alarm
Financial analyst David Alabi warned that SMEs, the backbone of Nigeria’s economy face a tipping point.
“Without urgent government intervention on energy and tax policies, closures and job losses will multiply,” he said.
Economist Jessica Onwa stressed that while tax reforms are vital for fiscal stability, they must not choke productivity.
“The government must balance fiscal goals with support for SMEs—through energy subsidies, easier regulations, and targeted incentives,” she advised.
The Bigger Picture
With Tinubunomics marked by subsidy removals, currency devaluation, and fiscal tightening, many small business owners say they are yet to see relief or structural support.
Unless urgent adjustments are made, stakeholders warn, Nigeria could see mass SME shutdowns, deeper unemployment, and a setback in its fragile economic recovery.
