12th Abuja fair: Low patronage, high space rent rattle SMEs
Operating a small and medium enterprise (SMEs) could be very challenging especially when confronted with high rent and low patronage.
This is exactly the case at the on-going 12th Abuja International Trade Fair organised by the Abuja Chamber of Commerce and Industry (ACCI) holding in Abuja.
Operators of small and medium-sized enterprises at the fair told Daily Trust that they got the spaces for their exhibitions at high prices and recouping their operating cost at the fair had been impossible due to low patronage.
An SME intending exhibitor, Mrs. Patricia Olofu, told Daily Trust at the fair that the chamber allocated a space for N25,000, an amount that she alone could not afford and had to look for someone to share the space.
Daily Trust also observed that some SMEs had to pair in a single space in order to afford the cost.
An art exhibitor, Samuel Olawuyi, also shared a space with another exhibitor at the fair to split the space rent.
On low patronage, Olawuyi told Daily Trust that Nigerians do not value artworks and this has made him to do mostly targeted exhibition at the wellto-do.
A food vendor at the fair, Linda Nwachukwu, complained of low turnout, which she said had affected sales and diminished her projected income.
A visitor to the fair, Mr. Gabriel Sabo, told Daily Trust that the location of the chamber may have contributed to the low turnout.
“If the fair is holding in the Central Business Area or any other city centre like Wuse area, you would have seen larger turnout of people,” he said.
Daily Trust observed that the chamber charged N100 as gate fee for visitors to access the exhibition ground.
It can be recalled that during the opening ceremony of the fair, the incoming president of the ACCI, Prince Adetokunbo Kayode, had expressed the chamber’s determination to support business start-ups to thrive.
Going round the exhibition ground, Daily Trust observed that there were more product distributors than actual innovative entrepreneurs.
Some of the exhibitors seen at the fair included GateGold Nigeria Limited that exhibited sporting equipment; Wall Paper Kingdom and Interiors that exhibited wall papers and wall arts; Airtek that exhibited solar solution-based electronics; Wandel International that exhibited TVS tricycles and Ardennes Herbal Teas.
Big players such as Dangote Group were also on ground to give the small players healthy business competition.
Government agencies, such as Central Bank of Nigeria (CBN), National Pension Commission (PenCom), Nigeria Automotive Design and Development Council, Export Promotion Council and many more were also on ground providing support services to SMEs and visitors at the fair.
The exhibitors showcased wares that showed potential for export in line with the theme of the fair, ‘Returning Nigeria to the Path of Sufficiency Through Non-Oil Export’.
This is in line with diversification effort of the the Federal Government geared toward the development of the non-oil sector with emphasis on SMEs and product exports to boost the economy through improved foreign exchange earnings.
Prince Kayode told exhibitors and guests that the ACCI remained supportive to the growth and development of Micro, Small and Medium Enterprises (MSMEs) in view of the critical role they have played over the years that accounts for their critical contribution to national growth.
He called on all concerned authorities to strengthen the capacity of support institutions which assist SMEs in the acquisition of loans and in marketing.
“In the same manner, there is need for effective implementation and monitoring of policies directed towards improving their plight,” he counselled.
However, the high space rent charged by the chamber at a time Nigerians had low purchasing power to patronise exhibitors seemed to have heightened the plight of the SMEs operators there.
In separate interviews, members of the chamber said exhibitions are not meant for profit making but for networking that lead to business development.
The Director General of the chamber, Chijioke Ekechukwu, said exhibitors should know that trade fairs are not for instant profit making.
“Preferences are made to develop markets for tomorrow. The purpose of a fair is not the one you make profit there and then but the benefit you are able to generate tomorrow,” he said.
The chamber’s Senior Manager of Trade Facilitation, Olorunmaiye Jonathan Olawale, also backed Ekechukwu’s stance.
Olawale said the fair has been designed to further the diversification efforts of the Federal Government, including emphasis on SMEs.
“We want to exhibit what SMEs are doing in the economy and to promote the non-oil sector,” he said.
He said the ACCI gave concessions to some exhibitors that are relevant to the goal of the fair in terms of cut in space rent to ensure their participation.