A new report published by Fate Foundation has revealed that businesses operating in the South-east are the most hit by the petrol subsidy removal policy of President Bola Tinubu.
According to the report, 90 per cent of businesses in Nigeria were negatively affected by the fuel subsidy removal in May 2023,
The report titled “State of Entrepreneurship”surveyed over 10,000 businesses across the 36 states of the country and the FCT, stating that smaller businesses were more affected than big businesses and the policy resulted in high operating costs, lower profits due to weak demands, and loss of customers.
It stated, “Entrepreneurs in the south-east were the most affected, while those in the South-South were the least affected, relative to other regions. The impact of the policy was even for both male and female entrepreneurs.”
The report also revealed that around 89 per cent of businesses in the country were negatively affected by the naira scarcity experienced earlier in the year before the general elections with the agricultural sector the most affected.
It further explained that the impact of the naira scarcity on farmers led to the contraction of the agricultural sector’s output by 0.9 per cent in the GDP report for Q1. The decline was the first in over three decades.
In terms of Nigerian entrepreneurs’ outlook towards business opportunities, around 86 per cent reported being optimistic about the future. However, the figure is less than the 93 per cent who affirmed their positive outlook in 2022.
According to the report, businesses in the service sector accounted for the major share of businesses in the country.
It states, “While 35 percent of businesses offer services, 22 per cent sell goods, and another 42 per cent trade in both goods and services. At the sectoral level, 18.8 per cent of total businesses operate in the wholesale and retail trade sector.
Subsidy became a national buzzword in 2012 when then-President Goodluck Jonathan announced its removal. Fuel prices increased from N65 ($0.14) to N140 ($0.30) per litre and triggered almost two weeks of protests known as Occupy Nigeria, causing Jonathan to reverse the decision.
