Rising shop rents in Abuja are forcing small business owners to reconsider the cost of maintaining physical outlets, with some relocating their operations to their homes while others are considering online sales to stay afloat.
Annual rents that previously ranged from ₦500,000 to ₦700,000 are now reaching between ₦900,000 and ₦1.2 million in some locations, according to a survey by the News Agency of Nigeria. The increases are adding to the pressure from electricity bills, transport costs and weaker customer patronage.
Brandspur Business News Desk reports that traders say the rising charges are eating into the money they need to restock goods, maintain their businesses and meet other operating expenses.
Ikechukwu Chidi, a fashion accessories dealer, is considering shutting his shop after his landlord proposed a rent increase. He said too much of his business capital was going towards securing the premises rather than buying stock. If he closes the shop, he plans to continue selling through social media.
Abike Suleiman, who deals in cosmetics, has already moved her business from a rented shop to her residence. Her annual rent rose from ₦450,000 to ₦800,000, leaving her with less money for restocking and other expenses.
Samuel Olushola, a provision store operator, said his rent had increased from ₦600,000 to ₦950,000. He believes the cost of securing commercial space is also discouraging young Nigerians with business ideas from opening physical outlets.
Property consultant Anita Adenekan attributed the increases partly to higher construction and maintenance costs, as well as expenses associated with providing facilities. She acknowledged that location, shop size and available facilities influence rental charges, but urged landlords to consider what small business tenants can afford.
Landlord Chijioke Nnamdi also pointed to rising expenses for repairs, security, sanitation and property management. He said owners should be prepared to negotiate with reliable tenants rather than risk leaving their properties vacant.
Economist Michael Onukwube warned that expensive commercial rents could limit business expansion, employment and investment in small enterprises. Businesses facing mounting costs may have to reduce staff, raise prices or close, he said.
Onukwube urged authorities to support access to affordable commercial spaces and financing for small businesses. He added that digital platforms could help some traders cut expenses and reach customers, although online sales may not fully replace physical shops.
For traders already struggling to keep their businesses running, the choice is increasingly between paying more to retain a shopfront and moving sales online to protect the capital they need to stay in business.
