Abuja: Ten Months After Devastating Fire Incident, Wuse Market Traders Feel Abandoned
The March 2024 fire incident at Abuja’s bustling Wuse Market remains a dark chapter in the lives of affected traders, many of who are yet to recover from the devastating losses. Over N900m worth of gold jewellery and several businesses valued at over N1bn were reduced to ashes.
The tragedy exposed the flaws in Nigeria’s commercial sector, particularly regarding insurance and market redevelopment.
The fire which occurred on March 12, 2024, was allegedly triggered by a gunshot fired during a task force operation that destroyed livelihoods, and left traders in despair.
When THE WHISTLER visited the market on Wednesday, affected shop owners who have now returned to their shops for business said that despite promises of compensation made by the FCT Minister, Nyesom Wike, traders were left to bear the brunt of redevelopment, costly shop allocations and insufficient support. Added these is the looming reality of demolition.
Insurance In Nigeria Is a Scan, It Doesn’t Work for the Poor:
The fire incident has shown the importance of businesses or properties being insured. However, many traders remain hesitant. For some traders, insuring their businesses remains a distant priority, with systemic distrust of Nigeria’s insurance industry being a key deterrent.
The position of the traders in the Wuse market is similar to that of their counterparts at the Dei-dei timber market where victims of the timber market fire rejected the insurance idea despite about N1.5bn in loss.
One of the victims of Wuse fire who sells traveling bags, Mr. Ignatius Idokwu, told THE WHISTLER that “insurance in Nigeria can’t work for me. It’s like a gamble, and I don’t want it.”
Also, Nnamani Ernest Eze, a trader who lost millions in goods, expressed his lack of faith in the system citing previous instances of unmet claims.
Eze, also a traveling bag trader said, “The system in Nigeria does not encourage insurance; it seems to favour only the rich. They don’t listen to the average person. If you approach an insurance company without a lawyer, trying to get compensation when something goes wrong feels like pouring water on a stone. When even banks collapse after citizens invest in their shares, it’s hard to trust the system.
“I don’t believe in insurance because, in my view, everyone in the system operates with ulterior motives. If you have money, it’s better to invest in landed properties or other businesses.
“There’s no point in wasting money on insurance that doesn’t deliver. For example, I had goods damaged in transit from Lagos to Abuja, and despite insuring the car, I got no support. When it comes to insurance in Nigeria, it will take the grace of God for things to improve.”
Eze further stressed the need for systemic reforms in Nigeria’s insurance institutions, and governance, while nothing that without trust in the institutions and policies that protect businesses, tragedies like this will continue to leave communities vulnerable.
Contrary to Ignatius and Eze’s fears, Bishop AGM, a fabric trader and victim of the fire, said he is open to insuring his business, but admitted that ongoing demolition plans create uncertainty.
“Yes, I am among those who have not insured their businesses. While I’m considering insuring my business now, there’s a challenge. Our line of shops, along with others, has been marked for demolition. I can’t proceed with insurance when the government might suddenly order us to vacate. We don’t even know when the demolition will happen—they could give us a notice at any moment,” he said.
How Traders Rebuilt Their Lives Following the Wuse Market Fire:
Some of the traders said it was their resilience that enabled them to bounce back despite the losses they incurred.
Bishop Agm told our correspondent that, “It’s been God all through the process, along with the support of a few family members and friends.”
For Eze, it was his investment in properties that saved him. “It’s essential to invest in properties if you have the means so that in times of financial need, your assets can serve as collateral to secure loans from financial institutions.”
A Million Naira— A Drop In the Ocean:
In the aftermath of the fire, the Abuja Investment Company Limited (AICL) provided N1m to each 10 affected traders as relief. However, traders dismissed the amount as inadequate.
Eze, while recounting what he lost to the fire said, “I bought the shop for N100m, excluding the value of my goods that is worth over N120m. The N1m given to us by AICL is not even up to what I sell in a day. Now, the government is evaluating the shop I bought for N100m at 30sqm for N120m and on top of that, they’re threatening to divide it into two after the demolition and redevelopment. This kind of situation could only happen in Nigeria.”
While the support was appreciated, the traders said the absence of further government assistance has left traders in disillusioned.
On his part Bishop Agm said, “Abuja Investment gave us N1m as succor, but the government, the senator and the rest that came only made promises and left us hanging.
“Before the fire incident, my fabric business was valued at over N100m. Even now that I’m back, more than N100m has been invested into it. Some fabrics, depending on their quality, can cost as much as N40,000 or N30,000 per yard.”
Similarly, Ignatius pointed out that, apart from the N1 million provided by the AICL, no government official or agency offered any support, despite numerous visits and the promises they were given.
“No one gave us money except for the AICL. The company managing the market didn’t really allow us the chance to advocate for ourselves. The ongoing redevelopment has silenced many people. It’s like fighting with your landlord, knowing he can evict you.
“People were afraid of losing their shops entirely, especially if they revoked their leases with no alternative. We saw what happened at UTC. Remember, the agreement we signed states that we have no claim to the property, only the government has the right to decide what happens. That’s why many of us chose not to fight,” he said.
The Price of Redevelopment:
Adding to traders’ woes is the ongoing redevelopment process. The Federal Capital Development Authority (FCDA), and AICL have marked several sections of Wuse Market for demolition. Traders have been offered new shop allocations at exorbitant costs, where 30sqm of shop goes for N120m.
The redevelopment project, fraught with disputes over shop sizes and costs, traders say they wait to see what the future holds.
Speaking to THE WHISTLER on the redevelopment issue, Eze criticised the arrangement saying, “FCDA allocated shops to citizens, and after some time, they decided to upgrade them to a better standard. Instead of giving us the same size of shop we originally had, they’re now saying they’ll divide the shop in two and only give us half. My shop was valued at 30 square meters, but now they’re threatening to give me just 15 square meters after the rebuilding.
“I didn’t ask them to rebuild the shop for me, it was their decision. Everyone here is capable of rebuilding their shop individually.
“If they want to rebuild and they valued my shop at N120 million, then why not sell it back to me at the same size (30 square meters) for that amount? This kind of thing wouldn’t happen even in Cameroon.”
Ignatius who gave a detailed explanation regarding the redevelopment, highlighted the lack of security in tenancy agreements.
“Initially, we were given until December 31, 2024, to vacate the building. So, redevelopment could begin on January 1, 2025. However, due to the fire incident in our section (glass shops), the redevelopment process was fast-tracked for our line.
“Following the announcement, we appealed for an extension of the grace period, considering our loss from the fire. We also requested that redevelopment begin in other sections while a temporary space be provided for us until construction is completed.
“Abuja Investment Company Limited (AICL) introduced numbered containers within the market as temporary shops for those displaced by redevelopment. Shops, including ours, have been marked for demolition, but we’ve been given some time to prepare.
“For shop owners, the new allocation system involves dividing the original 30sqm shops into two 15sqm spaces. Owners are offered the option to buy one 15sqm shop downstairs for N60m and the other upstairs for N50m, totaling N110m. If owners can’t afford the new allocation, they can sell their space to interested buyers.
“Claims of purchasing shops from landlords are misleading, as the shops have not been rebuilt yet. Most agreements made in the market were tenant-to-tenant transfers, where the buyer simply pays consent fees to the previous tenant and continues paying annual rent of N135,000 to the government. No document exists proving ownership beyond these agreements.
“As someone who rents directly from the government, I also pay N135,000 annually. It’s important to clarify that no one in the market is a landlord; everyone is a tenant. When redevelopment is complete, the government will issue offer letters to those interested in purchasing the shops.”
On whether there’s a request to retain shops downstairs and pay N120 million, he said, “The redevelopment was influenced by the interests of officials who want to secure spaces for themselves. This is why the shops were mapped out in the current arrangement, with most new spaces being 15sqm.
“The discussion around redevelopment has been ongoing for over 15 years, with delays caused by changing administrations and unresolved conflicts. Now, the current government has decided to proceed, and even AICL is exhausted from the prolonged negotiations. Many have spent money on legal fees, yet little progress has been made.
After purchasing the shops for N60m, tenants will no longer pay the annual rent of N135,000. All government markets in Abuja operate on a 50-year lease system.
The only money tenants will continue paying, is an annual service charge of about N60,000, covering sanitation, security, and management.
A Call for Change:
While the government has promised to station a fire service unit in Wuse, many traders feel it’s a case of too little, too late.
“The government has assured us that there will be a stationed fire service unit in the market,” Ignatius added while Eze said “After the fire incident, the government established boreholes at every corner of the market, along with pipes and the detergents used for firefighting. But let’s not forget, it was the government’s actions that caused the fire that destroyed our shops.”
Abuja: Ten Months After Devastating Fire Incident, Wuse Market Traders Feel Abandoned is first published on The Whistler Newspaper
