Rising commercial rents in Abuja are forcing several small business owners to reconsider traditional shop operations and embrace online trading as a more affordable alternative. A survey conducted by the News Agency of Nigeria (NAN) on Sunday revealed that increasing rental charges, alongside electricity bills, transportation expenses and declining customer patronage, are putting considerable pressure on entrepreneurs operating within the Federal Capital Territory. Some traders disclosed that shops previously rented for between ₦500,000 and ₦700,000 annually now attract charges ranging from ₦900,000 to ₦1.2 million in certain locations. The situation has compelled some business owners to downsize, relocate their operations or explore social media platforms to reach customers without maintaining expensive physical outlets.
Among those affected is a fashion accessories dealer, Ikechukwu Chidi, who is considering shutting down his rented shop following a proposed increase in his annual rent. He explained that a significant portion of his business capital now goes towards rental payments rather than purchasing merchandise. Similarly, cosmetics dealer Abike Suleiman relocated her business to her residence after her annual rent increased from ₦450,000 to ₦800,000. Another trader, Samuel Olushola, who operates a provision store, said his rent had risen from ₦600,000 to ₦950,000, making it increasingly difficult to sustain the business. Property consultant Anita Adenekan attributed the rising charges partly to increased construction, maintenance and facility management expenses, while landlord Chijioke Nnamdi maintained that property owners were equally struggling with higher costs of repairs, security and sanitation. Both sides, however, acknowledged the importance of negotiating reasonable rental agreements to prevent businesses from abandoning commercial spaces.
Economist Michael Onukwube warned that escalating commercial rents could have wider consequences for employment generation, business expansion and Nigeria’s economic development. According to him, small enterprises that spend substantial portions of their revenue on rent have fewer resources available for restocking, expansion and employing additional workers, potentially forcing some to increase prices, reduce their workforce or shut down entirely. He urged relevant authorities to encourage the development of affordable commercial spaces and improve access to financing for small business owners. Although digital platforms provide opportunities to reduce operating expenses and reach wider markets, he cautioned that online trading may not completely replace physical outlets. His recommendation was for businesses to combine physical and digital sales channels where possible, while creating a more supportive environment for small enterprises to survive and contribute to economic growth.
