2 min read
A lot of business owners in Nigeria are having the same conversation this year. Your rent expires, you go to renew it expecting an increase because, well, prices of everything has gone up anyway. Then the landlord mentions a figure that leaves you staring at him for a few seconds. Maybe it was ₦800,000 before, now it's ₦1,500,000.
Maybe your shop rent was ₦1,200,000, and suddenly you're hearing ₦2,000,000 plus extra charges.
And the painful part? This is not a new shop. You've already spent money painting the place, fixing shelves, putting up signboards and most importantly, building customers around that location. People know your business as:
"The pharmacy close to the junction."
"The shop opposite the bank."
"The woman that sells cosmetics near the market entrance."
Then one rent increase can suddenly put all of that at risk. This is one of the hardest realities of running a small business in Nigeria today. Many business owners are dealing with rising costs everywhere; goods cost more, transportation costs more, electricity costs more and now rent is becoming another major headache. The problem is not always that landlords are trying to be difficult. Property owners are also facing higher costs and are increasing prices based on what they believe the market can pay. But understanding why it happens doesn't remove the pressure on the person running the business.
Because the real cost is not only the extra rent. If you move, you start spending money all over again.
And then comes the hardest part: rebuilding customer traffic. A customer that used to pass your shop every day may not want to drive ten extra minutes to your new location. Some customers will follow you, some won't. That is why rent is not just a property issue, it is a business issue. So what can business owners do? First, don't only look only at the amount when renting a shop. Ask questions.
Many people rush because they urgently need a shop and only discover the difficult parts later.
Second, if you have a good relationship with your landlord, protect it. Paying on time, communicating well and keeping the property in good condition may not stop rent increases completely, but it can sometimes make discussions easier.
Third, build customers beyond your physical location.
Because a business that exists only as "that shop on that street" is more vulnerable than a business that customers can reach anywhere.
And lastly, prepare for the unexpected. Many of us don't like to think about this, Relocation is a real business risk. Just like stock can get damaged and prices can rise unexpectedly, rent can also change suddenly.
Having a small emergency fund or at least knowing alternative locations around your area can save you from making rushed decisions when pressure comes.
The truth is, many good businesses are not struggling because their products are bad or because customers don't like them. Sometimes, they are simply dealing with realities that are outside their control. But the businesses that scale through are often the ones that prepare for these realities before they become emergencies.
In today's Nigeria, rent is no longer just another expense. For many business owners, it has become one of the biggest factors that can determine whether a business grows, relocates, or shuts its doors completely.
