Nigeria’s inflation rate eased to 32.15% in August 2025, marking a five-month decline, according to the National Bureau of Statistics. For small and medium enterprises (SMEs), which account for 96% of businesses and over 80% of employment, this should signal relief.
Yet, in Nigeria’s riverine communities, where waterways are vital for trade and transport, SMEs are gasping for air. High input costs, unreliable infrastructure, and dwindling customer spending threaten their survival. The government’s inaction is unacceptable and demands immediate correction.
The Consumer Price Index inched up to 126.8 points in August from 125.9 in July. Food inflation dropped to 21.87% year-on-year, down from 37.52% in August 2024. Staples like fish, yams, and cassava—mainstays in riverine diets—saw slight price dips in some regions.
However, core inflation, excluding food and energy, climbed to 20.33% annually, up 1.43% from July. Regional disparities highlight the uneven burden: Ekiti’s headline rate hit 28.17%, while Zamfara’s was 11.82%. In riverine areas, these numbers mask deeper struggles.
SMEs in riverine communities face unique challenges. Seasonal flooding and poorly maintained waterways disrupt supply chains, driving up transport costs for goods like fresh fish or farm produce. A spokesperson from the Association of Small Business Owners of Nigeria shared that N50,000 buys frustratingly little at markets, forcing businesses to shrink inventories.
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The Nigerian Association of Small and Medium Enterprises noted that SMEs in these areas are focused on survival, not expansion, as customers, squeezed by high prices, spend cautiously. This cycle stifles growth and threatens jobs.
The root issues extend beyond inflation. Unreliable electricity forces businesses to rely on costly generators, while inadequate water transport infrastructure delays goods and inflates prices. In riverine markets, where boats are the primary transport mode, these barriers hit hard.
The Lagos Chamber of Commerce and Industry emphasizes that only a significant boost in supply—through improved infrastructure and food security—can tame prices. With the Central Bank of Nigeria’s Monetary Policy Committee convening on September 22, 2025, targeted interventions are critical.
Subsidies for riverine transport, investments in local power solutions, and support for agricultural supply chains could ease the strain. SMEs in these water-dependent communities cannot survive on optimistic statistics alone. The government must act decisively to keep these economic engines running.
