SME owners decry `cost push’ inflation

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FCTA Trade Fair
FCTA Trade Fair

By Franca Ofili

Some small business owners in the Federal Capital Territory (FCT) have attributed the rising cost of goods and services in the country to “cost-push’’ inflation.

The entrepreneurs, who spoke to the News Agency of Nigeria (NAN) in Abuja on Tuesday, deplored the situation and urged Federal Government to adopt strategy of monitoring price of goods in the country.

Cost-push inflation is a phenomenon in which the general price levels rise due to increase in the cost of wages and raw materials.

Mr Okechukwu Maduka, who sells foods items, said his shop was half full because he could not afford to buy plenty goods due to shortage of funds.

Madauka said that prices of goods he traded in had doubled and so, could not afford to stock as much as he used to.

“Nigerians have the habit of using every opportunity to make money; most of them that have the old stock in their warehouses will still talk about increase in dollar cost.

“Even the goods we provide in our country are now so expensive without any reason,’’ he said.

Mrs Florence Opara, a hair dresser, called on the Federal Government to fix the power sector to ease the pains of doing business in the country.

Opara explained that if electricity was fixed, businesses like hers and many others would improve the lives of many Nigerians as well as boost other small businesses.

“With epileptic power supply and bureaucracy, it becomes very expensive to produce, sell and make profit,’’ she said.

Another trader, Mr Ibrahim Mohammed, said that the Federal Government should put up strategies to ensure that the country manufactured things people consumed.

“We are more of a consuming economy than a producing economy, so, what we need is to build factories where most goods we import will be manufactured.

“If we manufacture some of those things, people will not bother about the dollar or any other foreign currency because why most Nigerians travel is to buy goods from other countries,’’ Mohammed said.

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