Nigeria is experiencing its worst economic crisis in a generation, a situation that has thrown the country into unprecedented hardship. This current crisis is defined by drastically high food inflation, the damaging effects of the removal of petrol subsidies and the aggressive devaluation of the naira, amongst other factors. With the naira to dollar rate oscillating between ₦1600 and ₦1700 to $1, many Nigerians have taken to social media to complain about the ongoing circumstances.

On Tuesday, February 27, the Nigerian Labour Congress kicked off protests, in response to the ongoing economic crisis in the country. The labor unions, who are holding protests between Tuesday and Wednesday, have also accused the Federal Government of Nigeria of failing to fulfill the agreements between both parties that would provide safety nets for their members, against the rising cost of living.

With the inflation rate at 29.9 percent, business owners are finding it difficult to run their enterprises, making it even harder for Nigerian citizens to afford basic necessities that were already expensive to begin with. This is especially difficult as income for most Nigerians has remained the same with almost no change in sight. The minimum wage in the country has remained at ₦30,000 ($18.40) for a month of 40-hour work weeks, since 2019 when the inflation rate was at 11.4 percent.

Ezinne (who requested that their last name not be used), a 29-year-old who runs a cake shop, says the erratic devaluation of the Nigerian currency has posed a huge challenge for her business which relies on the importation of several production materials, including petrol. The ripple effect of this means that customers are forced to look for cheaper alternatives. In terms of demand, “There has been a sharp decline for our high-end cakes,” they said.

This is a reality Ezinne shares with the over 16 Nigerian business owners who spoke to OkayAfrica for this story. Ojo Damilola, a 23-year-old business owner who imports and sells sunglasses and phone accessories, has been hit hard by the issue. Damilola tells OkayAfrica that she can no longer afford to import new inventory even though she hardly has enough left to sell. She has also had to shut down her business temporarily until things begin to look bright again.

The economic crisis is also affecting young Nigerians who say they are fearful now, more than ever, about their future. After missing out on the chance to write A-level exams in 2020 due to COVID-19, 22-year-old Billie (who also requested that their last name not be used) has found that her ambition to continue her studies outside the country is now severely affected due to the high exchange rate. “The economic crisis means that it’s a bit difficult to make long-term plans and most of my serious decisions recently have been made out of desperation rather than with a clear plan,” she says.

For some business owners, the ongoing hardship can be lessened with the enforcement of price control, while others suggest that the government cuts down its own costs. Funmi (who also requested that their last name not be used), who owns a clothing line, hopes that amongst many things, the government will offer struggling businesses grants to help them get through the times. “The government should reduce custom duties and tax rates for businesses,” she added.

In response to the economic crisis, President Bola Ahmed Tinubu has said he, alongside his administration, remains committed to implementing necessary policies that will improve the economic hardship in the country, and has no plans of walking back on some of the policies he has installed, including the removal of fuel subsidies that indiscriminately hiked up the prices of petrol in the country. “We are challenged, and we believe we will overcome the challenges. I have a can-do attitude that must be translated into a must-do attitude. We have a good team, and we must remain focused to get the goal accomplished,” the President declared in a press release published by the State House on February 22.