SMEs struggle as fuel costs rise, inflation pressure worsens

 

Small and medium-scale enterprises (SMEs) across Abuja are raising alarm over rising fuel costs, warning that the situation is driving up operating expenses and worsening the cost-of-living crisis.

Business owners say the persistent increase in petrol prices has eroded profit margins and weakened consumer purchasing power.

The concerns were gathered by Nairametrics from interviews with business operators across key parts of the Federal Capital Territory, including Mararaba, Nyanya, Apo, Wuse, and Kubwa.

The development reflects a broader trend where rising fuel prices continue to impact transport fares, food costs, and service delivery.

Experts warn that the situation could trigger a deeper inflationary spiral, particularly affecting SMEs that operate on thin margins and lack financial buffers.

What they are saying 

SME operators across Abuja say rising fuel prices are squeezing both their businesses and their customers, forcing difficult trade-offs between pricing and survival. Many say they are increasingly dealing with reduced demand and rising input costs.

“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,” said Madam Grace, a food vendor in Mararaba.  

“Customers now ask for half portions. Some will say, ‘Mama, I will balance you tomorrow.’ But tomorrow again they are still struggling,” said Aisha Sule in Nyanya.  

“From Nyanya to Area 1 before was N700, but now we will be lucky to get someone to pick you for N1,000,” said spare parts dealer Benjamin Onah in Apo.  

“I spend about N5,000 to N10,000 daily on fuel alone. Sometimes what we make in profit goes back into buying fuel,” said POS operator Chinedu Okeke in Wuse.  

A tailor in Garki, Esther Daniel, said customers are delaying non-essential spending. 

“Before, people would sew clothes for occasions ahead of time. Now they say they will manage what they have. Some even cancel orders,” she said, noting that sewing a complete outfit has risen from N8,000–N10,000 to about N15,000–N18,000 due to higher material and electricity costs. 

Operators say the rising cost of fuel is affecting everything from food production to transportation and basic financial services.