No fewer than 30 per cent of Nigeria’s 24 million registered Micro, Small, MediumEnterprises (MSMEs) shut down between 2023 to 2024, the Nigerian Economic Summit Group (NESG) has said.
The Chief Economist and Director of Research at NESG, Segun Omisakin, stated this in Lagos at the launch of 2025 Private Sector Outlook: Adapting to Economic Uncertainties for Growth and Resilience.
In his presentation, Omisakin provided an in-depth analysis ofprivate sector’s performance and economic risks in 2024. He highlighted the struggles faced by Nigeria’s private sector to include foreign exchange shortages, insecurity, inadequate infrastructure, and limited market access.
He noted that while foreign exchange availability improved due to policy reforms, Nigeria’s currency depreciated significantly, with the official exchange rate averaging N1,479.9 to the U.S. Dollar in 2024.
According to him, trade surpluses and increased foreign capital inflows were recorded, yet fiscal constraints persisted, with public debt rising to N142.3 trillion as of September 2024.
Acting Head, Strategic Communication and Advocacy, NESG, AyanyinkaAyanlowo, in a statement, quoted Omisakin as saying that businesses need to adapt to economic uncertainties and employ strategic measures for growth and resilience.
He outlined NESG’s framework of economic stabilisation, consolidation, and acceleration, emphasising the importance of monitoring reform efficacy and implementing policies that enhance private sector competitiveness.
On her part, NESG Board Director, Mrs. WonuAdetayo, noted that despite structural weaknesses and macroeconomic volatility, Nigeria experienced an economic growth improvement in 2024, driven by reform efforts that enhanced investment levels.
According to her, stagnant productivity and persistent macroeconomic imbalances led to deteriorating living standards and heightened economic distress.
She added that Nigeria’s economy expanded by 3.4 per cent in 2024, the highest growth since 2021, with the number of expanding activity sectors increasing from 32 in 2023 to 38 in 2024.
She highlighted key reforms, such as fuel subsidy removal and exchange rate harmonisation, which contributed to economic stabilisation.
A major concern highlighted by stakeholders at the event was the lack of immediate monetary interventions following the removal of the fuel subsidy, which exacerbated inflationary pressures.
Besides, inconsistent Customs regulations and fluctuating exchange rates were also identified as deterrents to investment and operational stability for businesses.
On the need for private sector inclusion in policy formulation, the panelists called for stronger collaboration between the public and private sectors, stressing that business associations like the Nigerian Association of Small and Medium Enterprises (NASME), the Nigerian Association of Small-Scale Industrialists (NASSI), and the Nigeria Employers’ Consultative Association (NECA) must be actively involved in economic decision-making.
They warned against government over-reach into private sector affairs, urging policymakers to recognise business organisations as essential stakeholders in negotiations on trade and investment.
(Guardian)
