Bashiru Alade and Nurudeen Adeniyi used to be two of the busiest mechanics in Lagos.
They had a thriving business repairing cars and generators, and they were always booked solid.
However, all that changed when fuel prices skyrocketed from N187 to N500 per litre and further increased to N617 following subsidy removal.
The sudden increase in fuel prices made it too expensive for many people to drive their cars or run their generators.
As a result, the number of vehicles and generators that came into Bashiru and Nurudeen’s workshops dropped drastically. Their businesses were decimated, and they were forced to scramble for new sources of income.
Bashiru started driving a motorcycle taxi (Okada), and Nurudeen started driving a tricycle (Keke) to make ends meet.
They are worried about how they will support their families, and they are angry at the government for putting them in this position.
- “We used to be successful mechanics,” said Bashiru. “But now we are just struggling to survive. We don’t know what the future holds for us.”
Nurudeen echoed Bashiru’s sentiments.
- “We are just trying to make ends meet,” he said. “But it is very difficult. We are hoping that the government will do something to help us.”
The fuel price hike has had a devastating impact on Bashiru, Nurudeen, and their families.
They are not alone in their struggles.
Many other mechanics in Nigeria have been forced to reinvent their businesses after the fuel subsidy removal.
The removal of the subsidy has had a significant impact on the economy of Nigeria, and it has particularly affected businesses that rely on fuel, such as automobile and generator mechanics.
Checks by Nairametrics across Lagos State showed that some automobile and generator mechanics are lamenting that they are gradually losing jobs as Nigerians continued to wail because of the recent petrol price increase.
According to them, Nigerians were yet to survive the subsidy removal that led to the sudden increase in the price of fuel from N187 to N500 per litre before it was jerked up now to N617.
One of the key factors that led to the increase in fuel price to be sold at N617 per litre according to the Nigerian National Petroleum Company Limited (NNPCL) was the hike in the exchange rate between the naira and the US dollar at the official Investor and Exporters window.
This was established after the order by President Bola Tinubu that there should be a unified exchange rate.
Further investigation revealed that because of the hike, many generator and vehicle repair businesses are being forced to close their doors.
Others are resorting to alternative sources of income, such as driving Okada or Keke.
The removal of the fuel subsidy has hurt the Nigerian economy.
However, the impact on generator and vehicle repair businesses has been particularly severe.
These businesses are essential to the daily lives of Nigerians, and their decline is a sign of the economic hardship that the country is facing.
It was also gathered that the hike in the price of fuel has forced many car owners to park their vehicles at home, which consequently, reduced the vehicles that go for services and repairs in mechanic garages.
The high cost of road transportation in the country which follows the increase in fuel price has led more Nigerians to resort to other alternatives like trekking and carpooling.
Nairametrics observed that the recurrent increase in fuel prices has paralyzed businesses and created a negative impact on transportation.
Since the announcement of the oil subsidy removal, transportation businesses have been very low in most parts of the country, especially automobile mechanics.
Auto mechanic lamentations
Some mechanics interviewed by Nairametics said the removal of fuel subsidies is affecting their services negatively.
Bashiru Alade, a Mitsubishi mechanic at Agidingbi (First Gate), Ikeja workshop, said the number of vehicles that patronized his workshop had dropped drastically due to the negative impact of the fuel hike.
- “Hiking in the price of fuel has forced many car owners to park their vehicles at home, which has drastically reduced the vehicles that come for services to my garage. The low patronage has rendered me and my apprentices redundant, so I have to resort to venturing into the Okada business for survival,’ he said.
Babatope Joshua, a Toyota mechanic at Akilo, Ikeja, said that most mechanics have been thrown out of jobs. The significant jump in energy and fuel prices; a downturn in consumer spending on routine vehicle maintenance and repairs as households tighten their belts has made it difficult for us to see business as usual.
- “Our situation is so bad to the extent that most mechanics are thrown out of jobs, no patronage from customers because of fuel hike as such we are less engaged.”
- “Our customers can’t afford fuel at the rate of N617. Even when it was sold at N500 per litre, many vehicles are parked already. Even here at the workshops many cars are parked and left unattended by the owners due to increases in the price of car parts, repairs, and servicing.
- “My apprentices that live far from the workshop have stopped coming to work, except a few who are living near and can trek to the workshop,” he said.
Generator repairers are becoming redundant:
Consequently, the survey also discovered that generator repairers are becoming redundant, as fewer owners are approaching them for repairs.
Nurudeen Adeniyi, a generator repairer who works near Adeoni Estate in the Berger axis on the outskirts of Lagos, said his customers hardly patronize his trade nowadays.
Adeniyi spends most of his workday in the Okada business to make ends meet.
John Okoye, also a generator repairer in Surulere, Lagos, expressed a similar experience.
He told Nairametrics that business has been bad over the past several weeks, specifically after the increase in the price of fuel. He said he hardly makes enough money to feed his family nowadays.
- “Before now, I would go home with up to N10,000 after the day’s work; but I hardly take more than N2,000 home over the past month,” he said.
Moses Abiodun, a generator mechanic at Agege also noted that since the removal of the fuel subsidy patronage for generator repairs and services has been on the low ebb.
- “The removal of subsidy has a great impact on our service here more than you expect. Because many have stopped using generators in their houses because the price is now out of reach of some people. We used to work at least 15 generators a day but now it has dropped to about four a day and even no work for a whole day.
- “It has drastically dropped because a lot of people now resort to using rechargeable lanterns to save costs,” he said.
He lamented that their businesses are going down now, which is a great challenge considering the harsh economic situation of the country.
What economists are saying:
The recent fuel price hike in Nigeria is having a devastating impact on generator repair businesses and auto mechanics.
According to Brian Amonu, managing director of Data Analytics and Solutions Nigeria Limited, out of the 50 million homes in Nigeria, 40% are partly powered by generator sets of varying sizes.
This means that 20 million generator sets need repairs from time to time.
- “However, the rising cost of fuel is making it difficult for many people to afford to run their generators. As a result, some people are choosing to stop using their generators altogether, while others are only using them sparingly. This is hurting the businesses of generator repairers, who are seeing a decline in customer demand.
- “If a significant number of Nigerian generator owners stop using their generators, and by extension stop repairing them, a hefty number of repairers’ jobs may be at stake,” said Amonu.
In addition to the impact on generator repair businesses, the fuel price hike is also hurting auto mechanics. Dr. Osho Okiti, CEO of Think Business, said that auto mechanics are losing patronage and jobs because their jobs are tied to car activities.
- “Mechanics depend on car activities and since we have had a reduction of cars on the road in past weeks, they are bound to experience low patronage,” said Okiti.
- “If you go to patrol stations nowadays, you will find out that most of the petrol attendants are now idle. Where you have about six attendants, you will see only two busy. This shows that if things continue like this, with time they will lose their jobs.”
The Managing Director, of Crane Securities Limited, Mr. Mike Eze also speaking with Nairametrics said that the rising cost of fuel is having a devastating impact on the livelihoods of many people in Nigeria.
- “The government needs to take steps to address the impact of the fuel price hike on these businesses and workers. This could include providing subsidies to help businesses cover the cost of fuel and spare parts. The government could also consider introducing measures to reduce the demand for generators, such as improving the country’s electricity grid.
- Without action from the government, the fuel price hike is likely to have a devastating impact on these businesses and workers. This will lead to job losses and further economic hardship for many people,” he said.
