Business

Coping With the Fuel Subsidy Removal As A Business Owner In Nigeria

Coping With the Fuel Subsidy Removal As A Business Owner In Nigeria

There have been diverse reactions to the removal of fuel subsidy in Nigeria. These range from outright rejections to enthusiastic support. However, there is a general agreement that the fuel subsidy removal would have a significant effect on the operations of businesses in Nigeria.

This post aims to explore ways you (as a business owner) can insulate your business from any negative effect of the increment in the fuel price.

Move your business online

An obvious implication of fuel subsidy removal is the increment in the cost of transportation. You move from one point to another—home to work, office to supplier’s , to and from client’s office….and the fuel price increment mean you spend more on these trips.

The internet provides you an opportunity to reduce the number of business trips you make and ultimately the cost of running your business.

  • Get a dynamic website if you don’t have one. And if you do, make the best use of it. A website is not supposed to be a traditional business catalogue, rather, it should serve as another office where present and prospective customers can view and even experience your offerings.
  • Review your website. Does it present your business in the most appealing way in terms of copy and aesthetics?
  • Is it dynamic? By this I mean does it allow you to update the information on it as often as it is needed.
  • Take advantage Mocality business directory. Listing your business on Mocality provides you with an array of free business tools that can help you reduce business trips. Free business tools like 800 free monthly SMS, mobile business cards, free contact storage etc. if properly used are capable of reducing your business trips sometimes by as much as fifty percent.
  • Also, social media provide other windows of doing more (mostly for free) for your business online

You might need to change that power generating set

Another area where the removal of subsidy will impact you as a small business owner is in the amount of money spent on buying fuel for your power generating sets (since you cannot depend on the non-existing public electricity).

There are a couple of things you can do to lower expenses on fuelling power generating sets:

  1. Buy another generator:  this might be a wise thing to do especially if your present generator is an old (model) fuel guzzler. The latest models of generators in the market are a whole lot more fuel efficient than the older models. True, this might mean capital investment and this is why you need a sort of cost analysis. Determine how many liters of petrol you use per day on the average. Multiply this by the current price per liter of petrol to get an estimate of how much you will spend daily fuelling your current generator. Get details of fuel consumption of newer models from the dealers. This analysis will help you decide whether to get another generator or not. Check Mocality for generator suppliers
  2. Buy a diesel powered generator: diesel burns a whole lot slower than petrol and since the cost of petrol and diesel is attaining parity, you should seriously consider changing to a diesel powered generating set.
  3. Consider Solar power

For non-essential items like outdoor lighting it is advisable to look into solar powered lights, the short term investment can usually be paid off in a short period of time with the savings on electricity.

Apart from helping you cope with the increment in fuel price, following some of the tips highlighted above will help your business become more efficient

 


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