By By: Lawrence Oseghale
Shortly after President Bola Ahmed Tinubu announced the removal of petrol subsidy in May, 2023, Nigerians have faced a steady rise in fuel prices. The policy, which was presented as a long term solution to improve the economy, has instead triggered a sharp decline in purchasing power for many households. Its effects have spread quickly across transportation, food prices, businesses and public institutions.
The situation further worsened in March following tensions in the Middle East involving Iran, Israel, and the United States. The disruption of oil supply routes, particularly around the Strait of Hormuz, contributed to global supply concerns and further pressure on fuel prices in Nigeria.
This report examines how businesses in Ibadan, especially those dependent on fuel and unstable public power supply, are coping with the rising costs. Earlier, Afriktimes have conducted field surveys at different periods to assess the deepening impact of the fuel crisis. During a visit on March 9 across parts of Ibadan, shortly after the escalation of the Middle East conflict, fuel prices showed sharp variation across locations, ranging from ₦1,150 to ₦1,300 per litre. As of the time of these previous reports, a litre of petrol was selling for about ₦1,200 per litre.
In response to the rising cost of living, the Oyo State Government announced on March 23 an additional ₦10,000 support for civil servants for three months. The government also promised similar support for private sector workers, though implementation of that pledge could not be independently verified as at the time of filing this report.
Despite these measures, the burden on small business owners remains heavy. Many who rely on fuel-powered equipment or inconsistent electricity supply say their operations have been severely affected.
Mr. Wale Adebayo, a carpenter operating in the Bodija axis, said his business has declined significantly since the fuel price surge. According to him, adjusting prices has become difficult due to reduced customer demands.
“People, particularly salary earners, already have fixed spending plans that may include furniture. But now, most income goes to food alone,” he explained.
He added that work now starts later in the day due to low customer turnout, with operations shifting from 8am to about 11am. The cost of wood, his primary material, has also increased sharply due to higher transportation costs. He described the situation as increasingly unbearable and called for government intervention.
Another business owner, Mr. Olaide, a barber who also runs a phone charging service in the same area, described the situation as draining. He noted that while his daily fuel expenses have doubled from about ₦3,000 to at least ₦6,000, he has been unable to increase the price of his services for fear of losing customers.
“The amount we spend on fuel now is far higher than before, but customers cannot afford any increase in service charge,” he said.
He added that the cost of a haircut remains between ₦1,000 and ₦2,000, while phone charging still goes for ₦200, despite the rising operational costs. He urged the government to introduce policies that would ease the burden on small scale businesses.
At Farayola area in Bodija, a welder, Mr. Agbaje, shared a similar experience. He described his situation as working mainly to cover fuel costs, with little profit left after expenses.
“Welding machines consume a lot of energy. If there was stable electricity, things would be much easier,” he said.
He stressed that inconsistent power supply has worsened the impact of rising fuel prices, leaving many artisans heavily dependent on petrol for their daily operations.
Findings from the field survey show that unreliable electricity supply continues to compound the challenges faced by small businesses. While some business owners have adjusted the prices of their goods and services, many still struggle to stay afloat as fuel prices fluctuate.
Across the board, business owners pointed to the need for improved electricity supply as a critical solution. Many believe that stable power would significantly reduce dependence on fuel and help cushion the impact of rising costs, especially as tensions in the Middle East continue to affect global oil markets.
Proofread by Oluwatayo Ogundare, AfrikTimes.
