ASBON's Egbesola Warns of SME Pressure from Transport Allowance

The Federal Government's approval of a N70,000 monthly transport allowance for public servants, starting in November 2026, has raised concerns among small business owners. Dr Femi Egbesola, President of the Association of Small Business Owners of Nigeria (ASBON), stated that while the allowance could improve the morale and purchasing power of public servants, it may lead to increased demands from private-sector employees for similar support.

This demand could pressure small and medium-sized enterprises (SMEs), which are already struggling with high operating costs. Egbesola noted that the benefits of the allowance would not extend to private-sector workers, artisans, and micro-business owners facing similar transport cost pressures.

He emphasized that nano and micro businesses are particularly vulnerable, as rising transport costs directly affect their profit margins. Egbesola urged the government to implement long-term measures to reduce transport costs and alleviate the burden on SMEs.