Traders and business owners in Ilorin, the capital of Kwara State, have voiced their distress over the persistent economic downturn that is adversely affecting their businesses.
Speaking with BusinessdaySunday, some operators of Small and Medium Enterprises (SMEs) highlighted the scarcity of funds and lack of patronage as the major challenges plaguing their businesses.
The surge in prices, they said, has made it challenging for them to cope with the prevailing economic crunch.
They also said that a significant number of operational shops are shutting down, while others are struggling to stay afloat in order to sustain themselves.
Nwoko Michael, whose business is located on Ibrahim Taiwo Road in Ilorin, who sells various brushes and home cleaning materials, lamented the exorbitant market prices.
He expressed concerns about the high increase in the cost of brushes, saying, “the market is too costly. The brushes I bought last two months for N285,000 are now N540,000. Can you imagine that; it is too high; in fact, we cannot cope with the way things are going.
“The current situation is seriously affecting my business even to sell becomes a problem. We are not meeting up with our targets and that is not helping us to grow.
“We are in serious discomfort, and dying of hunger. Our children are suffering because we cannot eat three square meals. See the next shop to me, the provision store was closed about three weeks ago because of financial constraints.”
Adisa Mohammed, an Okada rider, equally shared his perspective by highlighting the escalating fuel prices, making it difficult for him to afford fuel for his motorcycle.
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The surge in fuel prices has led to reduced patronage, forcing him to operate on a smaller scale to avoid losses.
“We only thank God for life but the situation is not friendly. Ordinarily, N3000 fuel will full my tank but now it is N10,000. I cannot afford it because of low patronage; so, I decided to be buying small quantity of fuel so as not to run into loss.
“A liter of petrol that I bought this morning was N800,” he said.
For Rebeka Olatunji, a provision seller with a cafe, lamented the severe impact of the economic situation on her business.
She emphasized the urgent need for government’s intervention to address the economic challenges faced by businesses.
“Things have never been as tough for me as the way they are now. If not because of God that is sustaining me, it is not easy at all. No sales, no money, and no food.
“I am carrying a month-old hair style done by my grandchild. If other women are like me; will hair dressers get patronage let alone make money to eat? This economic situation in Nigeria is killing so many people; several people are suffering and dying. So, government should see to this condition and act fast.
“If petrol price comes down, prices of food and goods will also come down. 10kg of Semovita is about N15,000 plus, 5kg is N9000 and even a milk can of Semo is sold for N220. You can imagine how much it will cost a family of four to eat semovita. All stakeholders, including the non-governmental organisations (NGOs) should help the masses, may God bless Nigeria.”
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Similarly, Ayo Ismail, an attendant at Zeemah stores, Tanke Ilorin, acknowledged that the situation is not favourable.
He urged all Nigerians to assist one another no matter how little so as to prevent people from losing their lives.
“The serious problem for us as business owners that sell people’s daily needs is the issue of capital. We need to look for more money to purchase goods and remain in the business. What we used to buy before at 100,000 is now about N300,000.
“Based on the kind of products we transact in, we know that as long as you have goods, you will make your money and that forces us to increase our capacity base.
“For instance, our investment of N30,000,000 for instance is now about N9.5 million capital base. Although, there is reduction in profit because of shabby economy but we just have to remain in the business.
“If the government can improve in diversifying the economy through other means, provide free entrepreneurship training to the teeming youths, our economy will grow and the issues of crime and insecurity will be reduced,” he said.
Taiye Olanrewaju, who deals in chemicals, oils, containers, and operates a PoS business, expressed his worries about the changing business landscape due to the economic crisis.
He noted the significant increase in the cost of goods, making it challenging for businesses to operate profitably.
“What we used to buy and sell is no longer business as usual. For instance, what we used to buy for N50,000 before is now between N90,000 and N100, 000.
“Also, market is very dry as there is no money in circulation. May God have mercy on us in Nigeria. We need to be wise and be prayerful because we don’t know where we are heading to,” Olanrewaju said.
Aminat Ibrahim, a dealer in clothing items, shared her struggles with the deteriorating economic conditions, which have led to decreased sales and profitability.
She said: “I am just coming to shop not to stay at home and develop depression. For about two weeks, I didn’t open even yesterday; I didn’t sell anything and today I have not seen a buyer.”
The economy has been bastardised. Now, if we buy a product at a particular price and sold it; by the time we go back to replace it the price would have increased; so, one must add more money or buy less than what one intended to purchase. Honestly, the situation we found ourselves is not friendly, you can see how scanty my shop is.”
In the same vein, Afusat Ramon, soft drinks seller at Surulere area Ilorin, highlighted the drastic decline in sales and patronage, leading to financial strains on her business.
She narrated the challenges of unsold stock and diminishing profits, even as she illustrated the widespread impact of the economic crisis on businesses in the region.
“The table water you are seeing in my shop has been there since March this year. I can’t even buy more because people don’t care for it. I had to dash out my bottle dinks during Sallah celebration for it not to expire. The problem is everywhere; the man who owned the depot I used to buy in bulk has closed his shop.
“Before now, I used to realise up to N40,000 or N30, 000 in a day, but now, things have changed. At times, I may realise N2,000 and other days, there won’t be market to the extent that I would borrow money for my transportation back home; you can imagine how terrible the situation has become,” Afusat said.
Shafau Muhammed, a food vendor at Orisankoko/Oloru quarters, Popo Igbonna, Ilorin, recounted how the current harsh economic situation is impacting on food making, recounting
how the depressed economic environment collapsed her food business.
She said: “The journey of about 20 years of food business that I had been doing abruptly came to an end two months ago, owing to skyrocketing prices of food items and essential commodities in the market.
“Now, I am indebted to yam and rice dealers to the tune of 450,000. The huge debt, as well as the continued rising prices of food materials, made me to halt the business completely.
“I can no longer cope with the harsh economic situation, as the investment now lacks profit. Six women working for me were disengaged.”
Bulky Adekunle, who runs a patent medicine store, said that despite the increasing health challenges in society occasioned by the harsh economy, people are not patronising pharmaceutical shops.
She explained that she has been forced to closed down her shop located at Oja Gboro, Ilorin.
“You can imagine ordinary paracetamol; people are no longer buying; it is not moving. It is very difficult for me now. Apart from not making progress in the business; I will still pay shop rent. So, it is better for me to hold on till the situation improves.”
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