President, Association of Micro Entrepreneurs of Nigeria (AMEN), Prince Saviour Iche has said small businesses were bearing the brunt of rising inflation as they were forced to absorb high input costs.
These, according to him, included the prices of raw materials, that have gone up more than 200 per cent making the production of goods costlier.
He noted that small business owners were struggling to deal with inflation pressures, including high petrol and diesel prices, electricity load shedding, among others.
Following this, he noted that businesses have been compelled to cut their expenses while juggling to keep their employees.
Also, he added that servicing of loan facilities to businesses had become costlier, denting the capital reserves of the businesses.
He acknowledged the impacts of insecurity and political uncertainty on the economic outlook.
A poultry farmer, Stephen Oladipupo, called on the government to take steps to enable small and medium enterprises (SMEs) survive economic hardship.
Oladipupo lamented that they have been forced to absorb all the high input costs, eroding their margins even as they try to pass on the increasing costs to consumers.
Unless something is done, he indicated that the country may struggle to sustain its surprise economic growth if the depression in SME sector progression is anything to go by.
A food seller, Onyeka Abia expressed concerns over rapid price inflation, adding that rising prices and living costs have exposed dampening effects on domestic activities across the economy.
Other analysts expressed concerns that the Naira has continued to edge lower against the US dollar, calling for a structural reform agenda focused on improved governance and economic recovery.
Among other things, they emphasised sustainable, private sector-led growth model with a focus on facilitating exports in higher-value-added sectors, improving the business climate and boosting investment inflows.
Concern over fast-rising prices has taken a new turn in the past few months with the consumer price index (CPI) hitting 18.6 per cent in June.