Nigeria's petrol and power price rises upset business owners

By Abraham Achirga
ABUJA, Sept 15 (Reuters) - Daniel Oyelesi, who runs a
laundry business in Nigeria's capital Abuja, is reeling from the
double whammy of price rises for petrol and electricity imposed
in recent weeks that he says will harm his two-year-old
business.
Earlier this month Nigeria's president said the increases,
announced days apart in early September, were needed to bolster
Africa's biggest economy, which for years has been urged by
multilateral lenders to remove costly fuel subsidies and change
electricity tariffs, both of which held prices artificially low.
Before electricity price rises were implemented, Oyelesi -
who works out of a cramped kiosk filled with piles of clothes, a
washing machine, tumble dryer and ironing board - spent 20,000
naira ($52.63) on power each month. He said that sum was now
likely to last two weeks.
"I won't say I'm coping... it has not been easy for us,"
said Oyelesi. He added that he feared losing customers if he
raised his prices.
Ochuko Kosefe, a barber, also lamented price hikes that made
him feel "sick".
Sat behind a cash desk where he watches one of his two
hairdressers cut the hair of a young boy, Kosefe said higher
fuel costs meant he rationed the use of his diesel powered
generator which, like many businesses in Nigeria, is used to
make up for the patchy power supply provided by the national
grid.
Nigeria's economy contracted by 6.1% in the second quarter
due to the impact of the coronavirus pandemic and low oil
prices. Africa's top oil exporter relies on crude sales for 90%
of foreign exchange earnings. Last month sources said a much-needed $1.5 billion World
Bank loan was held up due to concerns over the implementation of
reforms such as the fuel and electricity price
changes. But galloping inflation, which the central bank expects to
rise to 14.15% by the end of the year, is increasing costs for
businesses and their customers.
Oyelesi, whose words float above the constant hum of a
washing machine and the din from the busy Abuja street outside,
believes the future is bleak.
"If the government does not do something, we might be forced
to quit the business," he said.
($1 = 380.0000 naira)

(Writing by Alexis Akwagyiram; Editing by Alex Richardson)