Lizzy relocated from Kaduna State to Uyo, the Akwa Ibom State capital. Her reason was quite obvious. Self-preservation is the first law of nature and given the incessant banditry attacks that have taken many colourations, she needed to relocate. Before she moved to Uyo, she was running a thriving food business and it was enough to sustain the family.
In Uyo, she was able to set up a restaurant around the popular Udoh Street, an equivalent of the Fleet Street where the various newspapers published in the country and distributed and she had a large banner announcing her line of business and the various menus she offers.
She did not bother much about the rent which was close to N400,000 per annum because in her mind, she had hoped it was possible to have a good return on her investment within a few years. In addition to the rent, there were multiple taxes from the local government council and the state government and public power supply was non-existent.
One year after and with the rent for the restaurant due next month, Lizzy has folded up and plans to operate from her private car, a kind of an itinerant food vendor and take orders from customers who need her services.
“I have not been able to break even. The rent is on the high side and besides, customers are complaining about the lack of electricity and are unwilling to pay for an increase in the price of our products,’’ she said.
“Apart from the multiple taxes, I am competing with other food vendors who sell at lower prices and they come with a variety of dishes, from rice, pepper soup to porridge yam and baked beans,’’ she added.
Nearby, a make-up shop that opened with a fanfare has closed down. It was meant to be a happening place for young ladies and gentlemen eager to look good with the latest hairstyles and up-to-date pedicures and manicures for all sexes. It was not difficult to find out the reason why the business which was thought it would add more value to the business environment had to close so soon.
In the communities, the shrewd voices of young boys and girls calling out customers for baked beans popularly known as ‘akara’ in the morning are dying down, the price of beans has become unbearable like that of the cooking gas. While both prices are rising, the purchasing power of the consumers is shrinking, according to experts.
“We are not making profit with the high cost of beans, we have decided to look for something else; we are now into fashion and design,’’ Eno responded to inquiries why she and her sister were no longer into the business of frying akara.
Indeed, small businesses are crashing, from stylists centres to restaurants and drinking pubs, no thanks to the harsh operating environment which is not looking good any time soon.
That is the grim reality in Uyo, South-South Nigeria which years ago before the outbreak of COVID-19, many entrepreneurs were relocating to the city and there was a glimmer of hope in the horizon, a real prospect of a business boom that Uyo, the Akwa Ibom State would offer the best opportunities for entrepreneurs to grow their businesses
But now, all that is gone and it is a sad commentary on the harsh business environment which has forced several small businesses to close shop, raising fears about its implications in terms of unemployment and rising poverty level
Lucy Ekpenyong, coordinator, Small and Medium Scale Enterprise Development Agency (SMEDAN) in Akwa Ibom State agrees that the operating environment is harsh due to multiple taxations but adds that the Federal Government is doing a lot to support businesses though it might be a drop in the ocean.
“The environment is harsh; the taxes are too much on small business. However, we know that the Federal Government is trying its best though it may not be enough. Why the Small and Medium Enterprises are being hit hard is that they do not want to work together.
‘’In this present economic situation, only those who are networking and partnering can survive. Our people should work together. The Federal Government alone cannot do everything, the States and Local Governments should complement the efforts of the Federal Government. The Local Governments should have plans for SMEs,’’ she said.
In this year’s budget, Governor Udom Emmanuel has proposed support for MSME with a greater emphasis on the clustering of Micro, Small and Medium Enterprises (MSME) for “greater efficiency and effectiveness.”
According to him, this has informed the decision of the state government to establish cluster villages for different vocations including Information and Communication Technology (ICT), craftsmen, footwear producers, textile production, designing and woodworks. How this will work out remains to be seen.
For now, the reality on the ground is that the business environment is far from friendly and Lizzy whose hope was to earn a decent living from her small business of running a restaurant to support her family has been dashed. It is the reality that many small businesses face.
