challenging for households and small businesses to manage their bills with the operating cost among the factors of production.The high operating cost of running business in the country has further worsened the general productive outlook in the manufacturing sector as micro, small and medium sized businesses struggle to reflate the economy.
As the cost of living continues to rise beyond the means of many families in the country, Nigerians have appealed to the federal government to find a solution before the situation spirals out of control. Egbesola further said under this prevailing harsh economic conditions, the SMEs drivers are facing difficulty to either sell above cost price to enable them get more profits or face the risk of insolvency and closing of shops.
“The country would have moved forward not just in value addition but in high technology but we are just sliding back. Chairman, SMEs Group, the Lagos Chamber of Commerce and Industry, Daniel Dickson-Okezie, said, though government has made efforts to improve the real sector through funding, more needs to be done.
“The country needs to build industries, when the nation is industrialised, it will boost the economy. Government needs to encourage production and manufacturing by funding them. Most people have ideas but don’t have the funds to produce and increase value. MSMEs need access to cheap funds. Also, he said, a bag of local rice which used to cost between N20,000 and N24,000 last year, is now N29,000.
She said: “12.5 kg of cooking gas which cost N4,700 early last year is now N10,000. Inflation has affected just everything in the market including transportation. You saw that petrol marketers just jerked up price of PMS to N180 without any move from the government. A property developer, Mr Wale Babatunde said: “rent has gone up in the last one year. On the average, a flat that used to go for N250,000 in medium profile areas now goes for N350,000 to N400,000.