Rising shop rents in the Federal Capital Territory are forcing small business owners to relocate, downsize or move their businesses online to cut operating costs.
A survey by the News Agency of Nigeria (NAN) in Abuja indicates that increasing commercial rents, alongside electricity bills, transportation costs and declining customer patronage, are putting pressure on small businesses.
Some traders said shops previously rented for between 500,000 and 700,000 naira annually now attract rents of between 900,000 and 1.2 million naira in some locations.
A fashion accessories dealer, Ikechukwu Chidi, said he was considering closing his shop following a proposed rent increase.
He explained that a significant portion of his capital now went into paying rent rather than purchasing goods, adding that he might continue trading through social media if he could no longer afford a physical outlet.
Similarly, a cosmetics dealer, Abike Suleiman, said she had relocated her business from a rented shop to her residence after her annual rent increased from 450,000 to 800,000 naira.
Another trader, Samuel Olushola, who operates a provision store, said his landlord had increased his annual rent from 600,000 to 950,000 naira.
He noted that rising commercial rents were making it increasingly difficult for young Nigerians to establish and sustain physical businesses.
However, the report also highlights the growing financial burden on property owners, with a landlord calling for better understanding between landlords and tenants and urging negotiations to prevent commercial properties from remaining vacant.
An economist, Michael Onukwube, warned that rising commercial rents could undermine business expansion, employment generation and the contribution of small enterprises to economic growth.
He explained that excessive operating costs could force businesses to reduce their workforce, increase prices or shut down entirely.
Onukwube called on relevant authorities to promote affordable commercial spaces, improve access to financing and introduce policies that support small business development.
He added that digital platforms could help entrepreneurs reduce operating expenses and reach more customers, although online trading might not completely replace physical outlets.
The economist therefore advocated combining physical and digital sales channels to improve business sustainability and competitiveness.
