Abuja shop rents jump as small businesses weigh closures and a shift online

Rising shop rents in the Federal Capital Territory are pushing small business owners in Abuja to move their operations online in an effort to cut operating costs, according to a News Agency of Nigeria (NAN) survey conducted in the city on Sunday.

The survey found that increasing rental charges are putting pressure on businesses operating from rented commercial space. A comparison of charges provided by traders showed that shops previously rented for between N500,000 and N700,000 a year are now going for between N900,000 and N1.2 million in some locations.

Affected entrepreneurs said frequent rent increases, combined with electricity bills, transport costs and declining customer patronage, were hurting their businesses. Some said the increases had forced them to relocate, downsize or consider selling through social media platforms.

Ikechukwu Chidi, a fashion accessories dealer, said he was considering closing his shop following a proposed increase in his annual rent. "Running this business is becoming increasingly difficult because a large part of my capital now goes into paying rent instead of purchasing goods," he said, adding that he would keep selling through social media if he shut the shop because he could not afford to spend most of his earnings on rent.

Cosmetics dealer Abike Suleiman said she had relocated her business from a rented shop to her residence to reduce expenses. Her annual rent had risen from N450,000 to N800,000, making it difficult to sustain the business alongside other running costs.

The accounts point to mounting cost pressure on traders in Abuja's rental market, where shop rents have climbed even as customer spending weakens, leaving some operators to choose between absorbing higher occupancy costs and giving up physical premises.