Small and medium-scale enterprise (SME) operators across Abuja have raised an alarm over soaring fuel costs, warning that the persistent hike in petrol prices is eroding profit margins and forcing a drastic reduction in consumer demand.
Small and medium-scale enterprises (SMEs) across the Federal Capital Territory (FCT) are sounding a desperate alarm over the relentless surge in fuel prices, which they say has triggered an unsustainable rise in operating expenses. In a series of interviews conducted by Nairametrics across key hubs including Mararaba, Nyanya, Apo, Wuse, and Kubwa, business owners revealed that the energy crisis is systematically hollowing out their profit margins and weakening the purchasing power of their once-steady customer base. Experts have warned that this development could trigger a deeper inflationary spiral, particularly for businesses that operate on razor-thin margins and lack the financial buffers to absorb the continuous shocks in transport fares, food costs, and general service delivery.
The human cost of the crisis is becoming visible in the daily interactions between vendors and consumers, where the “new normal” involves half-portions and a heavy reliance on credit. Madam Grace, a food vendor in Mararaba, lamented the impossible choice between raising prices and losing her patrons: “Things are really hard. Even workers are complaining bitterly. Most of them are just eating on credit now. If I increase the price of my food, many of them won’t come again.” This sentiment was echoed by Aisha Sule in Nyanya, who noted, “Customers now ask for half portions. Some will say, ‘Mama, I will balance you tomorrow.’ But tomorrow again they are still struggling.” For many, the cost of simply getting to their place of business has become a burden, as spare parts dealer Benjamin Onah pointed out: “From Nyanya to Area 1 before was N700, but now we will be lucky to get someone to pick you for N1,000.”
Service-oriented businesses are also reporting a sharp decline in non-essential spending as residents prioritize survival over lifestyle. Chinedu Okeke, a POS operator in Wuse, disclosed that he spends between “N5,000 to N10,000 daily on fuel alone,” often seeing his entire daily profit consumed by the cost of running a generator. In the fashion industry, Garki-based tailor Esther Daniel observed that clients are increasingly cancelling orders or opting to “manage what they have” rather than commissioning new outfits. She noted that the cost of sewing a complete outfit has jumped from a range of N8,000–N10,000 to about N15,000–N18,000, driven by a combination of higher material costs and erratic, expensive electricity. As the cost-of-living crisis deepens, Abuja’s SME sector remains in a precarious state, waiting for a stabilization in fuel prices that seems increasingly elusive.
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