Nigeria's petrol and power price rises upset business owners

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The recent rise in cost of electricity and fuel has upset Nigerian business owners

ABUJA - 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.

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 on power each month. He said that sum was now likely to last two weeks. 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.

 

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