Across Nigeria’s capital city, small and medium-sized enterprises are battling for survival as a wave of economic pressures pushes operating costs to record highs. From energy bills to unpredictable food prices, the daily struggle of traders, artisans, and service providers paints a bleak picture of life under the current policy climate.
Many business owners argue that “Tinubunomics”—a mix of subsidy removals, tax reforms, and currency adjustments—has failed to create breathing space for the small business ecosystem. Instead, higher electricity tariffs, soaring fuel prices, and looming new taxes are squeezing already thin margins.
For Mrs. Grace Okon, a tailor in Wuse, the burden is becoming unbearable. “Fuel expenses alone sometimes cost more than the fabrics I use. If I raise prices, customers disappear,” she explained. A dry cleaner in Apo, Mrs. Esther Cletus, faces a similar challenge: much of her revenue now goes into electricity payments, leaving little for growth.
The food sector is equally strained. Restaurateur Musa Abdul noted that while some staple prices have temporarily dipped, volatility and tax uncertainty leave little room for planning. “We’re hanging by a thread. Another round of taxes could shut many of us down,” he warned.
Infrastructure gaps compound these troubles. Traders say bad roads and poor facilities drive up the cost of moving goods, leaving consumers to bear inflated prices by the time products reach urban markets. Salon owner Rashida Sule expressed fears that additional levies in 2026 will worsen an already precarious situation.
Experts caution that the country is nearing a breaking point. Financial analyst David Alabi warns that unless government revisits its approach, widespread SME closures could cripple the economy. “These businesses are Nigeria’s backbone—if they collapse, jobs and household incomes vanish with them,” he said. Economist Jessica Onwa added that reforms must balance fiscal needs with support measures such as subsidies, tax relief, and lighter regulations.
The bigger concern is what lies ahead. As fiscal tightening deepens and tax reforms roll out in 2026, Abuja’s business community fears more closures, rising unemployment, and a stalled recovery. Unless urgent interventions are made, Nigeria’s small businesses may not survive the storm.
