Fuel Scarcity, Poor Power Supply Affect Business Owners in Ogun State

Walking down Iyana Mortuary, an area in Abeokuta that would be vibing to the musical mix from Adewole Gbenga, a 28 year old disk jockey (DJ). Adewole Gbenga popularly known as ‘Finest’ plays his music daily to attract customers to his shop and also advertise his services.

However, the street is now quiet, pedestrians no longer enjoy the melodies from Finest’s studio, the street is now quiet. Finest needs electricity to play his music or at least fuel to power his speakers, both of which have now become scarce and unavailable.

‘I hardly play music in my shop and that makes customers doubt my presence,’ he said. ‘The hike in fuel price and the poor supply of electricity has really affected my business. Customers do flock to my shop before, but now, I rarely have any all day,’ he concluded.

The fuel crises which hit the country in February 2022, has persisted, affecting life and businesses across the country. Despite the assurance of the Nigerian National Petroleum Corporation (NNPC) to make availableover 2.1 billion liters of methanol-free petroleum and the subsequent supply of the same, the crises still persists creating untold hardship for small businesses in the country. 

Although there appears to be  an improvement in the supply of the product to filling stations, the quantity seems sufficient as there has been reduction of queues in filling stations. However, every station now sells at different prices,  higher than the set pump price that is powered by subsidy. 

Presently, filling stations at Sagamu, Ogere, Owode and Abeokuta areas of Ogun state now sell a liter of fuel at prices ranging from #165 to #200 which is contrary to the NUPENG directive to all petroleum marketers. 

Electricity is not doing much better as the  country was thrown into darkness after the national electricity grid collapsed. All the eleven (11)  electricity distribution companies (Discos) in Nigeria were affected. Before the collapse of the grid, power supply has always been a challenge in Nigeria, demand has never matched supply.

Nigerians are now faced with a double-edged challenge, epileptic power supply and a hike in fuel price.  

Business Owners are on the Verge of Giving up

Mrs. Ayeni, popularly known as Mummy Fawaz, who sells frozen foods has suspended her business. Mrs. Ayeni, who buys and sells in large quantities, can no longer afford to continue due to low patronage and her inability to preserve frozen foods due to hikes in fuel prices and epileptic power supply.

“I buy and sell turkey and fish in large quantities and ever since there has been a hike in fuel price, I can no longer afford to buy in large quantities because the increment has affected the prices of goods, and there has been low patronage since the fuel issue started. I sell wine too but for now,  I am no longer interested in buying goods in large quantities. I have to sell what I have first before restocking. 

One of the areas most affected by the fuel scarcity is transportation, both of people and goods. This has affected small business owners as most of them find it difficult to go out daily or to move their goods to the people and places where they are needed.

According to Mrs. Abosede Akinola, who sells tie and dye textiles at Itoku market, in Abeokuta, the hike in fuel price is affecting her business as she can no longer deliver clothes to customers that are far away. 

“As a business woman, my customers are office men and women. I travel and I also deliver goods to customers that are far away. With the current petrol price, transport fares have increased and most of my customers are telling me that the transport fare they pay has been doubled. Traveling to Sango-ota used to cost #500 but since there’s an increase in fuel price, it now costs #1000.  Some of my customers told me to wait till everything goes down, which may take a while.” 

Muinat Kareem, a trader who sells cooking ingredients at Sabo market, Sagamu, Ogun state said business hasn’t been going well for her since the beginning of fuel scarcity. Going to her shop on a daily basis has become a problem. It costs too much to get to her office.

“I only come to shop thrice in a week and those days are important days when I know my customers would need me. We have moved to our new house and the hike in fuel price is not encouraging traders at the moment. Before the fuel issue started, my T-fare cost #300 daily, now I spend #700 daily. It’s not as if I make sales instantly when I get to shop, I still need to convince customers to patronise me.

Muinat is not alone, Majeed Abeeb, a businessman who’s into beverage business narrated the challenges he has been facing since fuel scarcity and epileptic power supply arose in the country. He used to supply his customers who are far from him with his private car but now, he has lost most of his customers because he can no longer afford to deliver goods to them and they cannot afford the increment in the cost of goods which are a direct consequence of the fuel scarcity.

“We really need help in this country. These are crates of minerals in the shop which are yet to be sold. I do supply my customers with my private car which has made them put their trust in me. I can’t supply them any longer because petrol is now expensive and it’s the dream of every business owner to make profit. My generator isn’t working at the moment and there is no light in our area, though, I learnt it’s a national issue. We business owners really need help. Despite the situation, customers still crave for chilled drinks.”

Meanwhile, Iya Anjola, who runs a small typing and printing business now has to depend on her colleague who runs the same business as hers but has a generator. She often tells her customers to come back for their work as she awaits her colleague’s generator to be switched on so she can make use of it.

“The fuel situation  has been challenging. When the scarcity of fuel started, I was depending on my colleague. At times, we had to contribute to buy 5 liters of fuel. Ours is  challenging because we are not connected and do not rely on  NEPA light, rather, we operate with generators.  Without fuel, our business can never progress.

Adegboyega Emmanuel who does charging business for  a living said “ There’s no light everywhere and that’s why there are lots of phones charging here. Though, the price of fuel has increased and that has affected our sales too. We used to charge for #50 per phone but now it cost #70.” 

Mr. Haruna Ibraheem, a fashion designer said “ NEPA light is important to me as a fashion designer. Ironing and other finishing has to do with light. Now that Nigeria is having a crisis of light and fuel, I had to go  extra miles to do my work. In the aspect of ironing. Also, we’ve increased the sewing amount and I’m happy that some customers are complying. I pray it gets better soon”.

If these challenges persist, many small businesses will likely close, resulting in an increase in poverty and as a result other social vices.

Samuel Atiku, a Public Policy Analyst says that Nigeria’s economy is yet to recover  from the covid-19 shock. Between 2015-2021 about 23 million full time jobs were lost and necessary  solutions are yet  to come. This may continue to persist in society when even more businesses are being affected.   

“A hike in fuel prices could actually have cascading effects on the economic welfare of the country, it could take down a lot of things” the Public Policy Analyst said.

Atiku pointed out that the purpose for which the government is established among many is actually to ensure that life is preserved, to ensure that there is liberty and to ensure that the people can pursue  happiness. A society where  people are not happy , people are agitated, the insecurity level is high, such society will be unsafe. 

Atiku proffered some solutions on issues affecting businesses in the country. He advised that Nigeria needs to expand  her grid system to be able to absorb up to 100,000 Megawatts of electricity. He also said that there is a need to focus on the electricity distribution system to reduce operating cost and to promote meaningful entrepreneurship in the country.