‘SMEs also bearing the brunt’

By Omolara Akintoye

SMEs are also adversely affected by of the Covid-19 outbreak, as it has become increasingly difficult to import goods and this has affected general turnover of their business.

In the view of Aisha Sani Shuabu, who runs an online store, while sharing her plight in the wake of the coronavirus outbreak, told our reporter that the situation is may get critical soon if the crisis is not nipped in the bud.

“I’m into mini importation and I import bags, shoes, kitchen utensils, beauty products. The outbreak has affected my business a whole lot. There are some things we can’t even get right now because most of these suppliers haven’t resumed production. Like those areas that are worse affected by this virus, we can’t get the products we used to get from those areas because they are locked down right now,” she said matter-of-factly.

“Again, it takes a longer time for us to get our goods. Before now, it used to take our agents in China between two to three days to buy everything and ship to us, but now it takes close to two weeks before they ship our goods down to us.”

The reduction in production of products has in turn led to an increase in price of same. “The shipping cost has also gone up. All these factors affect the cost of goods, thereby reducing sales, sales have drastically reduced. “Also, dollar rate has increased. Previously, we used to pay N360 or N365 to $1, in fact when exchange rate was 365 prior to the outbreak; we even complained that it’s high. But as at last Saturday when some of my goods came in, $1 is now N420. It is a very big issue.”

With all these changes in prices, “I will in turn have to increase my own price, thereby reducing sales and turnover is very low now.

“I pray something can be done about this corona virus thing fast so that business can return to the way it used to be. We used to make profit before now because we do waybills to different states. I have dispatch riders that usually come to my place every day to take goods for delivery to different states, but now that has reduced. Since yesterday for instance, they haven’t come to pick up anything for delivery because there’s no sales. Even the dispatch riders are affected as there is no delivery to be done since they earn based on the number of deliveries they are able to do every day.”

Like Shuabu, Mr. Adebayo Samuel of S. Adebayo & Co. Furniture Ltd, laments low sales he has been experiencing in the last three weeks, which he said is a result of increase in prices of raw materials, most of which are imported from China.

“In the past, plywood which was sold for N6000 is now sold for N9000, while the one sold for N10,000 is now sold for N14,000, wood is gotten here in Nigeria but plywood, Evostick, tape, bed hook  are imported from China. This period is bad for us because we are experiencing low sales,” he laments.

The story is not different for Mr. Shola Abiodun of Shoklan Furniture located in Alimosho, he said early this year, a set of stool with centre table was sold for N30, 000 but is now sold for N40, 000 while wardrobe that was sold for N60, 000 is now sold for N100, 000, and once the price is too high, customers will go away, it’s that bad because we are no longer making any sales.”

Makers of plastic products are not left as they are lamenting non availability of most of the materials used in producing plastic products.

Speaking with one of the Supervisor, Stallion Group of Companies, makers of Stallion Plastics, Mr. Chima Uloma, he revealed that “non-availability of chemicals and materials being used for the production of plastic in the last two months has affected the sales, the reason being that majority of these materials are imported from China and since the outbreak of the coronavirus, we have been making use of our reserves which in no distant time will finish. As I speak, the prices of these plastic products are going up,” he said. According to him this is already taking its toll on the staff strength, “we have to downsize because some services are no longer needed.”

The Nation was also at Amazon Industrial Technology Ltd, Oregun, Ikeja, Lagos, makers of Dudu Bottled Water, one of the staff who decided to speak off camera said a pack of bottled water which used to be sold for N350 is now sold for N450 while a bag of pure water that used to be sold for N100 per bag is now N150 per bag.

“It is so sad that Nigeria being the giant of Africa cannot produce anything, most of the materials used in the production of the plastics are imported from China and with the outbreak of the virus, it’s so scary to say that the economy of this country is dwindling,” he said.