Economy
SOME small-scale business owners in the Federal Capital Territory (FCT), on Wednesday decried the low patronage of their businesses, saying the situation became pronounced since the removal of fuel subsidy by the Federal Government.
The News Agency of Nigeria (NAN) reports that on May 29, President Bola Tinubu, at his inauguration speech, said that the Federal Government had removed the subsidy on fuel.
NAN also reports that due to the removal, all facets of the economy witnessed a hike in prices of goods and services in the country.
Mr Abdul Mohammed, a vulcaniser at Area 10, Garki, said since the removal of the fuel subsidy, his business had witnessed low patronage.
According to Mohammed, many of his customers have parked their cars because they can no longer afford to buy fuel for their vehicles due to the high cost of petrol.
“The hike in fuel prices made me increase the cost of my service. This led to many of my customers to stop patronising me because they said they had parked their cars as they cannot afford to buy fuel due to the high prices.
“And in my type of business, profit depends on the level of patronage I get from my customers.”
Mohammed said it was not only the vulcanisers that increased their prices. Dealers in goods and services such as food stuffs, transportation and spare parts increased their prices.
“For instance, before I used to pay N700 for a bus ride from Kaduna Road in Suleja to Area 10 but now I pay as high as N1,500 to go to the place.
“I believe if the government is serious on the removal of fuel subsidy, it should and judiciously utilise the profits realised from it to provide essential amenities such as hospitals, good roads, and good transportation system for the masses.
“These will assist to cushion the effects of the subsidy removal on the people,’’ he said.
Mrs Christiana Musa, a hairdresser in Zone 4, said the removal of fuel subsidy by the government made her also to increase the price of her services.
She said as a result of this increase, she had witnessed low patronage of her business by customers who can no longer afford her services.
“Before I used to buy relaxer, gel, hair cream, hair attachment and petrol among others at cheaper prices but now all these materials I use for my work, have had their prices increased and I have to increase the price of my services in order to still be in business.
“Washing and drying of hair which used to cost N500 is now N800 as a result of the removal of the fuel subsidy.
“Government should do something to reduce the price of goods and services in the market so that the suffering of the people can be reduced,” she said.
Mr Ibrahim Ahmed, grains grinder at the Garki Market, said he used to charge N200 to grind a mudu of grains but now he charges at least N400 before he could make profit.
He added that many of his customers could not afford the N400 new charges because of the hardship they are experiencing due to the removal of the fuel subsidy.
Ahmed said he could not charge below N400 because he would be operating at a loss considering the price he bought fuel and repairs his machine for his work.
“In view of all these factors, the number of customers who patronise my business has dropped as they can no longer afford to pay for my services. Also, I can’t meet up; so I packed up, until the fuel price reduces.
“I implore Mr President to repair our refineries so that they can be functional and reduce the cost of fuel, so that many people can afford it,” he said.
Miss Edith Opara, a picture framer at Area 1, said hike in fuel price had made materials for her work very expensive, thereby causing the prices of her products and services to increase.
“What I sold for N5,000 is now N8,000 or even more. Because of this, patronage and profits have reduced but I still have some customers patronising my services.
“As prices of other goods and services have increased; I have also increased the amount of the salary I pay my staff. For instance, the price of transport used to be N200 but now it is N500.
“The effect of the subsidy removal is bad. If the government can find a way to cushion the impact on ordinary Nigerians, it will go a long way to reduce the suffering people are undergoing,” she said. (NAN)
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Tags: Mr Abdul Mohammed Mr Ibrahim Ahmed President Bola Tinubu
