…By Judah Olanisebee for TDPel Media.
The Impact of Fuel Subsidy Removal on Nigerian Businesses
A Nigerian business owner, Banke Meshida Lawal, recently voiced her concerns on social media regarding the consequences of fuel subsidy removal on businesses in Nigeria.
The removal of subsidies in the country has had a significant impact on the social and economic aspects of the average Nigerian’s life, as well as on business owners.
Struggles and Rising Costs
Banke highlighted the current situation in the country and expressed the difficulties she has been facing since the removal of the subsidy.
She emphasized that the soaring costs of various commodities are having a negative effect on businesses, including her own.
In her Instagram post, Banke shared her observations: “Everything has increased.
Transport fare from Yaba, which used to cost N500, has now skyrocketed to N1800.
The price of filling our petrol tank has surged from N12,000 to N37,000.”
Immediate Concerns and Dilemmas
As an employer, Banke questioned the appropriate course of action to take in the face of these challenges.
She raised crucial questions about the viability of businesses amidst these circumstances: “What are we supposed to do immediately? Because, for once in my life, I am struggling.
Diesel prices are threatening to increase, and so is the cost of electricity (Nepa).”
She further pondered the difficult choices businesses are confronted with: “When it comes to such situations, should we increase salaries? But where will the extra funds come from? Should we raise prices? Or should we consider shutting down operations and have everyone stay at home?”
Conclusion: Banke Meshida Lawal’s outcry sheds light on the hardships faced by Nigerian businesses following the removal of fuel subsidies.
The astronomical increase in prices for basic necessities, transportation, and fuel has put a strain on both businesses and individuals.
The dilemma of finding solutions in the midst of rising costs and uncertain economic conditions highlights the urgent need for measures to alleviate the burden on businesses and support the overall economy.