Tinubunomics Under Fire: Abuja SMEs Struggle With Rising Costs, Taxes, and Uncertain Policies

Small and medium-scale enterprises (SMEs) in Nigeria’s capital city are sounding the alarm over a mounting cost crisis that is threatening their survival. Under President Bola Tinubu’s economic reforms—popularly dubbed “Tinubunomics”—business owners in Abuja say they are battling surging fuel prices, skyrocketing electricity tariffs, volatile food costs and looming new taxes. For many, these pressures are making daily operations unsustainable and squeezing already thin profit margins.

Interviews with traders, artisans and entrepreneurs across the Federal Capital Territory (FCT) reveal a shared sense of frustration and anxiety. Grace Okon, a fashion designer in Wuse, told reporters she now spends more on fuel than on sewing materials, but when she raises her prices, customers push back or disappear. Similarly, Esther Cletus, who runs a dry-cleaning shop in Apo Resettlement, said most of her earnings now go straight to electricity bills. “Nothing is stable; the cost of everything keeps going up,” she lamented.

Beyond energy costs, poor infrastructure and shifting tax policies are also eroding business confidence. Musa Abdul, who operates a mini-restaurant in Garki, said food prices remain volatile and new taxes expected in 2026 could force closures. In Nyanya, salon owner Rashida Sule fears additional levies will “just kill our businesses” after years of paying multiple local fees. Traders like Nembam Atule complain that bad roads and inadequate market facilities inflate transport costs and triple farm-gate food prices by the time they reach city markets.

Financial analyst David Alabi warns that the trend could spark a wave of business closures, job losses and worsening poverty if the government does not intervene. “SMEs are the backbone of the Nigerian economy. Without relief on energy costs and tax burdens, the ecosystem may collapse,” he said. Economist Jessica Onwa agreed, noting that while tax reforms are important for fiscal sustainability, they must not come at the expense of productivity and economic inclusion. She urged authorities to provide energy subsidies, ease regulations and introduce incentives for small businesses.

The Federal Government’s tax reform plan, due in 2026, is already raising red flags among Abuja’s business community. With subsidy removals, a floating naira and tighter fiscal policies defining Tinubunomics, SMEs say they are yet to feel any structural support or relief. Unless urgent adjustments are made, experts and entrepreneurs alike warn Nigeria risks mass closures of small businesses, deeper unemployment and a stalled post-COVID economic recovery.

source: nairametrics