Why the cost of running business is high in Nigeria.

[hastral45]

Electricity as a sources of power plays major role in business development. Country with steady supply of power would experience boom its economy. In Nigeria, we are lacking steady supply of electricity. To run business in Nigeria, you must depend on alternative source of energy to rely on. This is an additional liability cost because you have to be fuelling the alternative power generator. This cost is part of what are added as part of expenditures.
Because of high cost of operating business, many businesses have closed down. Those that are yet to close down are running in break even point.

 

[cherry123]

You are right running business in Nigeria, comes at a high cost. you must depend on alternative source of energy to running the business efficiently and effectively. which is a liability

 

[Stardom22]

I think Nigeria is a member of the OPEC. So bearing in mind that I thought the price of petroleum products are very low since you produce your own petroleum products and running your Businesses with generators would be relatively cheap.

 

[Etini Willie]

I think Nigeria is a member of the OPEC. So bearing in mind that I thought the price of petroleum products are very low since you produce your own petroleum products and running your Businesses with generators would be relatively cheap.

No matter how you see it, when you have to generate your own electricity by yourself, it is bound to be more expensive than commercially generated supply and that adds up to the cost of production.

 

[Niyi Briggs]

Anyone has to really respect people that have thriving businesses in Nigeria. The things that we have to surmount to keep on doing business in this country are huge. Power, insecurity and all.

 

[Shavkat]

I hope that everything well be progressed in Nigeria. It is not good to keep on using power generator when having a business. It will surely cost a lot in terms of operating expenses.

 

[Stardom22]

I think the cost of running businesses is high in Nigeria because of the increased in prices of the cost of production of the products and the evident of the political instabilities in the country oflate.

 

[Heatman]

If your business requires electricity for you to run, it is always going to impact on the high cost of running the business but if it doesn't require a power for you to run the business, then generally high inflation is going to affect the cost of running the business.

 

[cherry123]

The thing is that expenses adds up to the cost of production no matter how it is done when you have to generate income and you have a whole lot of bills to pay. Cost of production will be high

 

[Niyi Briggs]

I hope that everything well be progressed in Nigeria. It is not good to keep on using power generator when having a business. It will surely cost a lot in terms of operating expenses.

It has really affected the ability of people to do businesses. You want to start a business now. The cost of getting a generator set would discourage you and make you lose interest.

 

[Smalto]

Electricity as a sources of power plays major role in business development. Country with steady supply of power would experience boom its economy. In Nigeria, we are lacking steady supply of electricity. To run business in Nigeria, you must depend on alternative source of energy to rely on. This is an additional liability cost because you have to be fuelling the alternative power generator. This cost is part of what are added as part of expenditures.
Because of high cost of operating business, many businesses have closed down. Those that are yet to close down are running in break even point.

All these listed above are nothing but the truth, only the cost of running a generating set in order to power your business can even discourage or run a business down, because you are putting too much money in buying petrol or diesel in order for the business to be functional, because there is no steady supply always.

 

[uptrendfinancialsignal]

The cost of running a business could be extremely high due to the inflation rate.

 

[Niyi Briggs]

If one even navigates through the power challenges, one is faced next with corruption charges. They would charge you for your business to be given approval even when you have met all the criteria.

 

[Etini Willie]

And if one manages to overcome power challenges and licensing challenges, one would now stand face to face against insecurity. Nigerian business organizations provide power and security for themselves to run.

 

[Shavkat]

It has really affected the ability of people to do businesses. You want to start a business now. The cost of getting a generator set would discourage you and make you lose interest.

I can feel you and do not like to be in this situation as much as possible. I just want the local government to do something. In my country, the local government agencies are tring their best to deal with this kind of dilemma.

 

[Niyi Briggs]

I really don't know what it takes to stabilize electricity supply in my country. Sometimes, I feel like it is somethings that I can achieve in six months. All what we lack is the political will to get it fixed.

 

[Etini Willie]

The reason the cost of running a business is high in Nigeria is that it is dependent on so many factors which include rent (if the business building is not yours), power supply (water or electricity) , cost of transportation, cost of production all these are factors that makes the cost of running a business in Nigeria to be a little high above expectation.

 

[Heatman]

It has really affected the ability of people to do businesses. You want to start a business now. The cost of getting a generator set would discourage you and make you lose interest.

The government is not even making any attempt to improve the supply of electricity in order for businesses to have something that will enable them to carry out their businesses without high cost.

 

[IB D]

The government is not even making any attempt to improve the supply of electricity in order for businesses to have something that will enable them to carry out their businesses without high cost.

I have given up on Nigeria ever having a stable electricity. There is no political will on the part of government to fix it. They can't tell me the problem is something that can never be fixed.

 

[Etini Willie]

That is why it is difficult for a young person from a struggling background can easily stand out in business. The top business people in the country are old people who have benefitted from the system.