SMEs operators lament weak naira impact on businesses

Operators of Small and Medium Enterprises (SMEs) sub-sector have lamented how much difficulties their businesses are facing on account of naira devaluation by the Central Bank of Nigeria (CBN) coupled with recent free fall of the local currency. The operators’ major concern is that the weakening naira has increased their in- put cost substantially, making it difficult for them to survive. They raised the concerns in Abuja when Wuse Market Shop Operators and Traders Cooperative Society paid a visit to Abuja Chamber of Commerce and Industry (ABUCCI).

The local currency has tumbled 17 percent in the last three months majorly on speculative demand and there are now fears that it could drop further unless serious interventions hap- pen quickly. The naira for instance, closed N199 at the interbank at the BDC segment two days after the CBN shut down its RDAS official FX and directed all demand to the interbank market.

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The traders led by the president, Chinedu Agabae- nwere, said the devaluation of the naira had posed a great challenge to small business operators in the country, saying the situation was making them bankrupt. “The situation is really affecting the small business operators; let’s assume you bought your goods at the 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. The situation now has put operators in a very difficult situation,” Agabaenwere said. He said the operators have to source for more fund to keep the business going