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SME operators groan as naira devaluation bites harder

By on February 21, 2015

Operators of small and medium scale enterprises (SMEs) in Abuja have said the devaluation of the naira by the Central Bank of Nigeria was affecting their businesses negatively.

The operators stated this when Wuse Market Shop Operators and Traders Cooperative Society paid a visit to Abuja Chamber of Commerce and Industry (ABUCCI).

The traders, led by their president, Mr. Chinedu Agabaenwere, said the devaluation of the naira now posed a great challenge to small business operators in the country, pointing out that the situation was making them bankrupt.

“The situation is really affecting the small business operators. Let’s assume you bought your goods at black market EXCHANGE RATE of N168 per dollar, before devaluation and finish selling the goods at that old price. And now you want to replenish your stock, you can imagine the difference in the exchange rate which is now hovering around N215 per dollar at the black market.

“So that particular amount of money you have then cannot get you the same quantity of goods now, a situation which has put operators in a very difficult situation,”  Agabaenwere said.

He stated that the operators have to source for more fund to keep the business going.

According to him, another challenge facing the operators was unfriendly government policies which he said has hampered the growth of SMEs.

“Government policy is another challenge. There was a time we were having problem with the Nigerian Customs Service when they began to harass us in the market by intercepting and seizing our goods. These are the goods that must have been cleared from the wharf.

“We have to meet the customs and expressed our displeasure over it, that they should not be disturbing innocent traders in the market or on the road when such goods had been cleared.”

He therefore called on the federal government to put in place policies that will ensure growth of SMEs and success of the economy.

President of ABUCCI, Mr. Tony Ejinkeonye, in his remark commended the traders for their initiative and assured them of the Chamber’s cooperation.

“We assured you of collaboration in terms of advocacy and legislation. If you can articulate your challenges we are ready to pass them to the relevant authority to advocate for a better legislation for traders especially within Wuse market,” he said.

 

[ThisDay]