Last month when the Federal Government effected an increase in the pump price of Premium Motor Spirit (Petrol), reactions varied with individuals.
While some said it was a welcome development, others said it was a necessary evil, and yet other groups said it was a wrong decision by the government.
An Alaba International Market based business executive, Mr. Ukaha Acha Ukaha opined that the price hike will further impoverish the already poor.
He predicated his view on the fact that prices of goods and services will go up while salaries of workers will remain the same.
However, the Federal Government has reportedly surprised people like Ukaha by agreeing to increase the minimum wage from the present N18000 to N45000.
Though short of Labour’s demand for N56000, it is an increase which some even express surprise that the government could offer such increase of more than 100 per cent considering that most state governments have not been able to pay their workers the N18000. The possibility of state governments’ employees receiving that sum is as good as any body’s guess.
What Ukaha and other like-minds did not envisage is that the small business owners/operators will be affected by the decline in purchasing power.
The AUTHORITY checks however revealed that this group is now under intense pressure as a result of the fuel price hike. A commercial motorcycle [Okada] operator, Friday Jimmy, told our correspondent that he and his colleagues in the Afromedia area of Ojo, Lagos are unable to increase the fares they charge to correspond with the new cost of fuel.
He said this is because the business is highly competitive owing to the continuous influx of people into it.
He said that more people are joining the job market every day and Okada, according to him, is a great source of daily income for people who are out of job.
He explained there are too many operators at every point chasing few prospective passengers.
Most Okada operators are desperate to make a little money to survive each day and so will accept any amount offered by a prospective passenger, he further said.
“One just have to accept whatever is offered and fast too, as other operators are watching and looking for an opportunity to snatch the passenger away from you. So we are not passing the new cost of fuel to our passengers. Therefore, it has made our business less profitable than it used to be,” he explained.
A tricycle (keke) operator, Inuwa Garba spoke in similar vain.
He said that they too are unable to increase their fares due to competition.
According to him, his unit actually increased the fare from N50 to N70 but were compelled to revert back when passengers deserted them and began to patronise okada who were ready to collect N70 for a trip.
This, he said, has made the business less profitable as the higher cost of fuelling the machine is not transferred to the passengers.
Barbers and hair dressing saloons appear to be worse off. Barbers are badly hit, according to Babatunde Akeem, a barber in Tedi, Ojo Local Government Area of Lagos.
He said their case is worsened by the fact that they must have their light on in the night whether or not they have a client.
He said it is the only way people will know that a barber’s shop is open for business as most people prefer to patronise the barbers after the day’s work.
And like okada business, it is highly competitive making it difficult to increase price.
His words: “It is the N200 we were collecting before we still collect. If I refuse to collect another barber will collect and do the work. Everybody is hustling to find money. Barbers are too plenty now. Every street you see two or three and some time more than that. How many people want to do hair cut in one day in one street. Some time we meet and agree to increase price but after, everybody goes to his shop and collect any amount.”
Hair saloonists have virtually the same story to tell as the barbers. Mama Uju of Uwalaka Street, told The AUTHORITY that it has not been easy for her since the fuel price hike.
She said her earning from each job has drastically reduced since the price increase as the cost of fuelling her generator has increased while she cannot pass the difference to her clients for fear of losing them. The situation is made worse by the decline in power supply from the national grid, she said
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