Small Businesses Lose Daily Income, Job Opportunities to Lagos Flood
- The rain has eaten into the revenue of small and medium businesses in Nigeria, as it prevents young entrepreneurs and workers from going to work
- Two small businesses recording turnover of over N200,000 monthly, said on the day it rains, they don't make any revenue from their operation
- Nigeria is in its rainy season, and the roads in some location are flooded during a downpour, preventing customers from patronising smes
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The rainy season is upon Nigeria, and small businesses have been at the receiving end for the past two months, and one of those hurt by the downpour is Oluwatola Oyeyemi.
Oyeyemi operates agency banking/PoS business, as well as paint production under her family-owned venture, De Assurance, in Ikorodu, area of Lagos.
Small businesses losing revenue to Lagos flood
Prior to the rainy season, she makes an estimate of over N260,000 monthly from PoS business, as daily turnover runs into about N12,000, Legit.ng gathered from the young female entrepreneur.
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However, since the rain started, it has affected her streams of income, as her business hour routine has been disrupted on multiple occasions, especially in late August and early September.
From N12,000 daily PoS withdrawal income, Oyeyemi now records zero revenue on days it rains, as the downpour usually causes flood in her resident area, as well as where her business is located.
Small businesses losing more than revenue
Oyeyemi isn't the only small business owner impacted by the flood. Her counterpart, Nwanosike Emmanuel, owner of De Emperors Interior and Exterior, said his raw materials have been damaged by the flood.
Emmanuel is into paint production, but he hasn't been able to frequent his shop because of the flood. He told Legit.ng that anytime it rains, his shop becomes a no go area, and customers are hard to come by.
He stated that:
"Even painting contract are stalled due to constant rain because the walls are wet. Some times, my calcium and caolin and thickners are touched by the flood when it overflow it's boundaries at the shop entrance.
"So, I experience very low sales, spoilt goods, stalled/no contract at all Very badly affected and it has been raining without stop."
Emmanuel use to make about N220,000 monthly from his paint production business. He also paint houses, but the rain has cut the number of jobs he secures, reducing his monthly turnover.
An informer trader, who simply identified herself as Bose, said wares which she sells get damaged by the flood where her shop is located - over 30% of her daily turnover is affected by the rain.
Jobs, salary of small businesses affected by the downpour
Both OyeyemI and Emmanuel will have to wait until September ending before business goes back to normal, as the rainy season will draw the curtain by then.
But until then, they are not the only persons affected, as workers have also had to stay back at home because these small businesses are unable to operate during the rainy period.
In Nigeria, small businesses are regarded as the engine of Nigeria's economy and labour market, accounting for over 50% to Nigeria’s Gross Domestic Product and 80% of employment, according to Minister of State for Industry, Trade and Investment, Mariam Katagum.
After rainy season, prices of soft drinks to go up
Some retailers said Nigerians should get ready as prices of soft drinks will rise after the rainy season, as distributors will increase asking fee.
Legit.ng heard that prices of Pepsi, Coca-Cola and Bigi were dropped because of the rainy season, in order to encourage sales across Nigeria.
This comes after the lawmakers in Nigeria queried the Federal Inland Revenue Service as to why the soft drinks are not being taxed.