Sales drop, businesses closing, Nigerians cry out

Since the official declaration of recession, government agencies as well as private businesses have been trying to adjust to the current reality. In this two-part report, sought the views of business owners, financial experts and other stakeholders on how to reverse the economic downturn. The second part of the report will be published in our Wednesday, September 21, 2016 edition.

As recession bites harder in the country, owners of boutiques and clothing lines in parts of Abuja and Nasarawa state have lamented the significant drop in their sales level just as Daily Trust observed that more buyers are now patronising ‘used clothing’.

Our reporter who visited some key shops at the expanse Nyanya market near Abuja gathered that the number of customers who troop in to buy clothes at the clothing section of the market may have reduced.

Mr. Onyeka Peter who owns a double boutique shop at the market said his business was in dilemma as it has been hit by high cost of wholesale purchase of clothes and a critical decline in the retail marketing.

Another boutique operator, Madam Naomi Attah in Mararaba area of Nasarawa state said to survive in the market, she had to develop key marketing strategies in the last two months.

“I started sending text messages to my loyal customers informing them of good things in stock; I increased my credit-giving level especially to worthy customers and then tried to crash prices of my clothes just to dispose them and make a minute profit,” she said.

Mrs. Attah who buys most of her bulk goods from the large fabric/clothing market in Kano metropolis said she has reduced her trips from three times to once every month due to the drop in patronage.

One of them, Mr. John Isiaku said “You can get a packet shirt for N1,000 at the few evening markets in Nyanya, Mararaba and the Wuse Berger area in Abuja city. Such shirt will cost up to N2,500 in a conventional boutique before this recession,” he revealed.

Confirming the disclosures, the Daily Trust yesterday observed the markets are booming in the locations mentioned. Mostly from 7:00pm, the Wuse-Berger and Nyanya Parks are a beehive of business activities with most sellers displaying their ware by the road side for quick sales.

Fatimat Bello, a buyer seen at the Nyanya Park said you could select the clothes and bargain earnestly to have it at a reduced price. “Some sellers just evaluate certain clothe specifications and attach a price tag to whichever the buyer picks.

Mrs Bakare Adebayo, the CEO of Bread and More has been in the bakery business for eight years. With about five outlets selling bread in Abuja and over a 100 staff she says in the last three month, the business is just trying to survive as a result of the downturn in the economy.

“The cost of bakery items has increased by 33%. This is because of the escalating prices of raw materials in bakery. In the last three months, we have changed to survival strategy. To keep every cost a bay and keep our good hands (staff). When the economy gets better, then we can start talking about making profit. We will be deceiving ourselves if we are expecting a massive profit now. We are just trying our best to survive, “she explains.

Before now, she said the prices of raw materials were cheaper, but with the increase in the foreign exchange, prices have gone up.

“Before now, we buy flour for 7,200 now it is 10,800. The Golden Penny brand is about 11,500. The problem is that most of the products we are using for bakery are not manufactured Nigeria, like yeast, wheat and other things, meanwhile, we cannot increase the price of the bread just like that” she said.

Muhammed Shuiab is a fish farmer. Since the recession, he said business has been dwindling.

“Due to the increase of foreign exchange rate, a bag of foreign feed that was formally sold for N5,500 is now 7,500 . This is making it difficult for fish farmers to meet up with the production targets. This is the challenges faced by farmers,” Shuiab said.

Chairperson, Executive Council of WIMBIZ, Mrs Aishah Ahmad said though some businesses are struggling under the volatile economy women/SMEs can take advantage of opportunities that avail itself.