By Adewale Sanyaolu
The persistent fuel scarcity across Nigeria, with a particularly severe impact in Lagos, has led to a significant slowdown in economic activities.
Small and Medium Enterprises (SMEs), including small traders, barbers, frozen food vendors, welders, and restaurant owners, are among the hardest hit by this crisis.
These businesses rely heavily on small and medium-sized generators to power their operations, and the ongoing fuel shortage has drastically disrupted their ability to function. The already unreliable power supply has worsened, with many businesses being downgraded from higher electricity supply bands to those with significantly reduced hours.
Mrs. Funmilayo Adeniji, who operates a frozen food shop in the Command area of Ipaja, Lagos, reported a staggering loss of over N2.5 million due to the fuel crisis. Her inability to secure fuel for her generator has led to spoilage of her frozen goods, further exacerbating the strain on her business.
“The most frustrating aspect is the refusal of filling stations to sell petrol into jerrycans. Those that do insist on having you bring your generator to the station. How am I supposed to transport a medium-sized generator?” she lamented.
Similarly, Mrs. Eunice Anyanwu, who runs a bar on Social Club Road, Abule Egba, has seen her situation deteriorate due to a malfunctioning transformer that has been out of service for over seven months. The fuel scarcity has compounded her problems, making it impossible to serve cold drinks to her patrons.
“The scarcity has resulted in a loss of customers as they complain about the lack of cold drinks. Ice block vendors have also increased their prices, which I cannot pass on to my customers due to fixed prices. Consequently, many have opted to go elsewhere,” she explained.
The situation at petroleum depots, particularly in Apapa, reflects the broader crisis. Depot workers report a drastic reduction in product distribution, with daily truck loadings falling from 150 to just 70. The rationing of supplies and the requirement to showcase empty tanks before receiving new stocks highlight the severity of the fuel shortage.
A depot worker, who wished to remain anonymous, expressed concern over the bleak outlook. “Trucks have been waiting in line for over a week with no clear timeline for when they will be supplied. The situation is grim and may continue to worsen in the coming weeks.”
This ongoing fuel scarcity highlights a severe strain on Nigeria’s economy, highlighting the urgent need for comprehensive solutions to address both the immediate and long-term challenges faced by SMEs and the broader market.