How inflation impacts Nigeria’s small businesses

Nigeria's economy has been grappling with high inflation, with rates climbing above 18.6% in June. Small businesses, in particular, are facing challenges in sustaining production amidst these economic uncertainties. In a recent interview on CNBC Africa, Jumoke Dada, the Founder of Taeillo, shed light on how her company is navigating through the high inflationary environment and shared strategies for other small businesses to adapt and thrive. Dada emphasized the importance of providing affordable products to customers while ensuring business sustainability. One of the key strategies adopted by Taeillo is the creation of alternative products to offer customers a range of options without significantly increasing prices. This approach has helped the company maintain customer satisfaction and loyalty. Despite the inflationary pressures, Dada mentioned that customers have not been complaining about high prices due to the availability of alternative products. Taeillo's focus on local sourcing of inputs has also shielded the company from the direct impact of currency fluctuations. By purchasing materials locally, Taeillo has managed to mitigate the challenges associated with dollar scarcity and import dependencies. Dada highlighted the importance of responding to market dynamics by launching affordable product lines during challenging periods. During the COVID-19 lockdown, Taeillo introduced an affordable table line to cater to customers working from home, showcasing the company's ability to adapt to changing consumer needs. The success of Taeillo during economic downturns has instilled confidence in investors, enabling the company to secure funding even in challenging times. Dada encouraged small businesses to proactively seek local alternatives and leverage domestic resources to sustain production and meet customer demands. She emphasized the need for businesses to pivot towards locally sourced materials to build resilience and reduce dependency on imports. As Nigeria's economy faces inflationary pressures and currency fluctuations, small businesses must innovate and adapt to survive. Dada's insights underscore the importance of flexibility, market responsiveness, and strategic sourcing in navigating high inflation and economic uncertainties. By prioritizing affordability, quality, and local sourcing, small businesses can withstand the challenges and emerge stronger in the evolving economic landscape.