Inflation Squeezes Nigerian SMEs as Energy Costs Devour Profits

Small and medium-sized enterprises across Nigeria are cutting hours, reducing stock and closing shops under surging energy costs. High fuel prices and electricity tariff hikes now consume up to 60 per cent of their profits. Artisans and traders from Abuja to Kano report spoiled goods, excessive generator bills and unpaid power tariffs for electricity they never receive. Some have turned to solar panels or charcoal irons just to survive. Transport costs have also spiralled. Haulage fees from Lagos to Kano now run into millions of naira, forcing traders to buy in smaller quantities and customers to limit purchases to essentials. Economists warn that widespread SME distress could trigger job losses and deepen poverty. They urge targeted relief measures, low-interest credit, investment in energy infrastructure and policies to lower production and logistics costs.

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