Traders in the Federal Capital Territory (FCT) have raised alarms over the economic strain caused by the recent fuel price hike, citing increased transportation costs, reduced sales, and eroded profit margins. The News Agency of Nigeria (NAN) reported on Monday that traders described the surge as a significant burden on their operations, with some noting a 30-50% rise in logistics expenses. Umar Bayero, a trader in Suleja, emphasized that the fuel price increase has directly impacted his business.
As a trader, I depend on transportation both to source goods from suppliers and to move them to my place of business. From an economic perspective, this has contributed to higher input costs and reduced my profit margin,
Bayero said. He detailed that transportation and restocking costs had risen sharply, forcing him to raise selling prices.
Depending on the distance and quantity of goods involved, my transportation and logistics expenses have increased by roughly between 30 per cent and 50 per cent. Suppliers have also increased their prices because they face higher transportation and distribution costs. This has forced me to increase my selling prices to partly compensate for the higher cost of restocking and transportation,
Bayero added. However, he noted that customers were purchasing smaller quantities and prioritizing essentials, limiting his ability to fully pass on the cost increases. Azubuike Okafor, another trader, echoed similar concerns.
Higher operating and restocking costs have reduced my profit margin and customers having less money to spend has led to lower sales. Compared with the period before the fuel price increase, I am dealing with higher costs, weaker demand, and low profit,
Okafor stated. He described efforts to mitigate the impact, including comparing suppliers for better prices and managing inventory more carefully. He called for stable energy and transport costs, low-interest business loans, and improved infrastructure to ease the burden. Haneefa Anegbe of Rubis Mart in Suleja highlighted the ripple effects of the hike.
The cost of transportation has significantly increased, causing the prices of things to go up. The impact is not too much, we absorb it, but when an increase is significant, like something selling for N60,000 goes up to N68,000, we have no choice but to increase our price too,
Anegbe said. She noted a decline in customer purchases, attributing it to households prioritizing essential expenses like school fees.
The fact that we are not making sales is because our customers do not have so much to spend, so they have to distinguish their needs from their wants and prioritise their needs. Another major thing that will help is if income increases because no matter how much goods you purchase, if you are not selling, then you are not doing anything,
Anegbe added, advocating for higher minimum wages to stimulate spending. Residents in Kubwa and other FCT areas also reported personal financial strain. Auwal Muhammad said transportation costs and food prices had risen, prompting him to buy in smaller quantities and cut non-essential spending.
Transportation costs have gone up, and the prices of food and other goods have also increased. I now buy in smaller quantities, avoid unnecessary spending, and plan my expenses carefully,
Muhammad said. Fauziya Umar, a Kubwa resident, echoed these sentiments, noting that her spending ability had diminished despite unchanged income.
My spending ability has been affected, whereas my income remains unchanged. I call for measures to reduce transportation costs and the prices of essential goods, as well as support to ease the burden of rising living costs,
Umar stated. The traders' collective concerns underscore broader economic challenges, with many emphasizing the need for policy interventions to stabilize costs and boost consumer purchasing power. Their calls for affordable energy, improved infrastructure, and financial support reflect a growing demand for systemic solutions to mitigate the fallout from the fuel price hike. The report was compiled from statements provided to the News Agency of Nigeria (NAN) on Monday, as part of ongoing coverage of the economic implications of recent fuel price adjustments in Nigeria.
Fuel Price Hike Sparks Business Concerns Among FCT Traders