Costly sides of market relocations
Amos Demuren trades in household items with emphasis on baby accessories. He said he was the first set of traders to move into the AMAC-Lugbe international market when it opened up for patronage about a year ago. With an apparent false sense of expectation, he moved his goods into one of the lock up stalls […]
Amos Demuren trades in household items with emphasis on baby accessories. He said he was the first set of traders to move into the AMAC-Lugbe international market when it opened up for patronage about a year ago. With an apparent false sense of expectation, he moved his goods into one of the lock up stalls on the premises to commence business. But he said that a year down the line, his expectations have been dashed as a result of a nosedive in business and profit generally. He strongly believes that he may have fared much better if he had remained in the ‘old market’ where business boomed and the running cost of his business was much lower. ‘In the old market, you do not have to worry much about the outrageous rent. There is also a higher number of business transactions than what is evident here. Most people prefer to patronise open markets such as the old market rather than the newer markets that now dot the city. Compared to the amount you have to cough out to purchase a shop here in relation to what you make as profit, staying in such markets is much better for a business man.’
A few meters from him, sitting in front of her small cubicle, Mrs Ajoke unnervingly appears to share same thoughts with the young man. She sells weave-on for ladies and other feminine accessories. She has not had a single customer since she opened up for business this humid day and depression appears to have started setting in for the middle aged woman. But she calmly dons a resigned smile which breaks out wearily when she looks up at the reporter in anticipation of doing possible business. When she realises her hopes are misplaced, she nevertheless offers a few words: ‘well you just have to pray whenever you come to the market. Perhaps it is because the market is new that is why patronage is low. But it is not a general thing. Some goods especially food items sell very fast here. But majority of traders here complain of lack of adequate patronage especially when you look at the huge amount you pay to get one of these lock up shops. Locations equally matters as those that are operating around the frontal part of the market enjoy more patronage. But generally sales are low for everyone.’
Following the authorities’ decision to demolish the old Lugbe market which it said constituted an eyesore for residents; a new relocation market christened AMAC-Lugbe relocation market was constructed. The first phase which has already been completed has been leased out for business for members of the public at rates many say is exorbitant. The second phase located near the Lugbe Police Barracks is yet to be completed but the process of leasing has nevertheless commenced as the city authorities make spirited moves to reduce street trading and the operation of illegal markets in the area and others in the FCT. But a cross section of traders and residents in Lugbe particularly lament the high cost of securing shops at the recently opened markets including other growing city markets such as the one located in Garki.
Investigations revealed that at the Lugbe relocation market that the cost of a shop with of 6.94 area square metres which occupies roofed open market on the ground floor is put at N1.85 million. Instalment payments for this space was given at N740,000 for the first 40 percent, N555,000 for second payment (the 30 percent should not be later than 90 days after the first payment) and N555,000 for the third payment of 30 percent (not later than 180 days after the second instalment).
For shop of 6.94 area square metres on the first floor, the price stands at N1.65m with instalment payments equally available. Areas mapped out as ‘dry informal sector and wet informal sectors’ with 6 area square metres each, sold at N760,000. Meat shops with 298.2 area square metres sell at N1.2 million and chicken market stalls with 6.83 area square metres sell at N1.2 million.
However, according to Pastor John, an agent at the market, getting a shop at the market was not as difficult as people tend to think. He said with as little as N80,000 one could rent a convenient stall to do one’s business. He noted that, “it depends on your pocket. If you have N80,000 there is something for you here at the market. What usually happens is that people buy out these shops at the prices given. Then they lease it out at prices depending on the size of the shop. That is why you can have a shop going for N100,000 in a part of the market and have the same shop going for N150,000 in another part of the market. That is business for you. Of course the location of the shop matters a lot. The ones at the front part are more expensive with the least going for about N300,000 per year. But when you look at your pocket and the kind of business you want to do then you can get something tailored towards your needs.”
A visit to the market revealed a large number of stalls under lock. A few blocks of shops equally have entire lines of shops either without doors or padlocked. A trader at the market informed the reporter that most of the shops had been acquired for over a year and had remained unoccupied ever since.
“Most of them have been sold. The owners have either abandoned them since there is not much patronage or are looking for potential buyers or those that they will lease them out to. Most of them are owned by wealthy residents, political office holders and their wives and thus they can afford to leave them unused for as long as they want,” he said. Interestingly he added that all the units have been sold therefore none can be acquired directly from the AMAC management but only through an existing owner or the numerous agents that mill around the premises.
A stall owner, Gift Mbakwe however said that despite the high cost of acquiring the units, people still struggle to get them. ‘Business is good for some people here despite the huge amount they paid to get the shops. Many of them had existing customers where they came from. So you will find out that if they are good at what they do, your old customers will trace you to your present location. That is what works out here on a daily basis. While others are complaining of low patronage, others still express happiness that they ‘are making it,’ she enthused.
At the Garki international market, a senior staff at the Estate Department of the Urban Shelter Limited, managers of the market, who pleaded anonymity as she was not authorised to speak agreed that most of the shops and lock up stalls in the market were already taken despite the huge amount needed to purchase one. ‘You cannot get an allocation from the management anymore. If you want to rent a shop you will need an intermediary or agent who will go around for you to find out if there is anyone who wants to leave or rent out his own shop. The lowest you can get to rent now is N250,000. The market is becoming more prominent by the day and to get a shop is now more difficult,” she said.