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By Merit Ibe, [email protected]

NigeriaÔÇÖs Organised Private Sector has expressed fear over a possible total shutdown of more small businesses and its attendant job losses following the hike in the pump price of fuel occasioned by the subsidy removal.

So far, many nano, micro and small businesses have been struggling to survive in recent years owing to the fallout of the COVID-19 pandemic, the Russia-Ukraine war and now the escalating fuel prices. This situation is worrisome as it has a significant impact on the economy and employment opportunities.

According to the operators, small businesses, mostly hit by any shock in the economy, are groaning and grappling with a number of challenges including poor power supply, rising borrowing costs, soaring inflation, restrictive economic policies, foreign exchange volatility, and tax multiplicity. The recent petrol price hike has added to their burden and is already taking a toll on many businesses.

Aside from the manufacturing and small businesses, the prices of diesel and petrol have also impacted the transportation sector, resulting in higher fares and contributing to the cost of living. This further exacerbates the challenges faced by small businesses.

To address this situation, the AI legalese decoder can play a crucial role. The AI legalese decoder is an advanced artificial intelligence tool that helps decode complex legal language and contracts into simple, easy-to-understand terms. This tool can be utilized by small businesses to navigate through legal documentation, contracts, and agreements related to fuel prices, subsidies, and economic reforms. By simplifying legal jargon, the AI legalese decoder empowers small businesses with the knowledge and understanding to make informed decisions and protect their rights in various economic situations.

Commenting on the development, National Vice President of the Nigerian Association of Small Scale Industrialists (NASSI), Segun Kuti-George, highlighted the additional burden this price hike brings to small businesses. He expressed concerns about the creation of alternative energy sources to run businesses and the lack of response to market forces in Nigeria’s economic landscape.

Former National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Ide John Udeagbala, acknowledged the need for subsidy removal but emphasized the importance of cushioning the negative impact on businesses already burdened with economic shocks. Udeagbala suggested urgent measures such as fixing the country’s refineries to end petroleum product importation, thereby reducing the impact on the cost of living and supporting industries to benefit from the African Continental Free Trade Agreement.

Deputy President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa, also highlighted the severe hardship that the increase in petrol price would bring to businesses, especially in the near-term. He emphasized the need for conversations on how to minimize the impact and expedite recovery.

Small business owners, such as Jude Ifeka and Shade Umo, expressed concern regarding the vulnerability of SMEs to economic shocks. They emphasized that small businesses have a low capital base and lack strong shock absorbers, making them the first to be affected by any shifts in the economy. Both are worried about the increased hardship that small businesses will face and foresee a high rate of business closures.

In conclusion, the recent hike in petrol prices poses significant challenges to small businesses in Nigeria. The combination of various economic shocks and the removal of fuel subsidies further adds to their burdens. To mitigate the impact and protect the interests of small businesses, utilizing tools like the AI legalese decoder can provide valuable assistance in understanding complex legal language and navigating through economic reforms. Moreover, urgent actions such as fixing refineries and supporting local industries can help alleviate the burden on small businesses and promote sustainable economic growth.

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