spot_img
spot_imgspot_img
October 8, 2026 - 7:53 AM

30% of Nigeria’s MSMEs Shut Down in Two Years –NESG Warns of Economic Challenges

—

A staggering 30% of Nigeria’s 24 million registered Micro, Small, and Medium Enterprises (MSMEs) shut down between 2023 and 2024, according to the Nigerian Economic Summit Group (NESG).

This revelation underscores the harsh economic climate that has forced thousands of small businesses to close despite their critical role in job creation and economic growth.

Key Challenges Facing Nigeria’s Private Sector

Speaking at the launch of the 2025 Private Sector Outlook: Adapting to Economic Uncertainties for Growth and Resilience in Lagos, Segun Omisakin, NESG’s Chief Economist and Director of Research, provided a comprehensive analysis of the private sector’s struggles in 2024.

Omisakin identified several major obstacles that hindered business growth, including:

  • Foreign Exchange Shortages – Limited access to foreign exchange hampered imports and increased production costs.
  • Insecurity – Ongoing security challenges have made business operations difficult, particularly in rural areas.
  • Poor Infrastructure – Inconsistent power supply and inadequate transportation networks raised operational expenses.
  • Limited Market Access – Many businesses struggled to expand due to unfavorable trade policies and weak consumer demand.

While policy reforms helped improve forex availability, Nigeria’s currency weakened significantly, with the official exchange rate averaging N1,479.9 per US dollar in 2024.

Fiscal Constraints and Rising Public Debt

Despite trade surpluses and increased foreign capital inflows, Nigeria’s economic outlook remained clouded by fiscal instability. According to Omisakin, the nation’s public debt surged to N142.3 trillion by September 2024, intensifying concerns about long-term economic sustainability.

NESG’s Acting Head of Strategic Communication and Advocacy, Ayanyinka Ayanlowo, emphasized the need for businesses to embrace adaptive strategies to survive economic volatility. The organization recommended a framework focusing on stabilization, consolidation, and acceleration, stressing the importance of monitoring reform effectiveness and strengthening policies that boost private sector competitiveness.

Signs of Growth Amid Economic Struggles

Despite these challenges, NESG Board Director, Mrs. Wonu Adetayo, highlighted that Nigeria’s economy grew by 3.4% in 2024, marking the highest growth rate since 2021.

She noted that the number of expanding economic sectors increased from 32 in 2023 to 38 in 2024, driven by key policy reforms such as:

  • Fuel Subsidy Removal – Helped reduce government spending but led to inflationary pressures.
  • Exchange Rate Harmonization – Improved forex liquidity but caused short-term volatility.

However, Adetayo cautioned that stagnant productivity levels and macroeconomic imbalances continued to erode living standards and increase financial hardship for many Nigerians.

Urgent Need for Private Sector Inclusion in Policy Decisions

A key concern raised at the event was the lack of immediate monetary interventions following the removal of fuel subsidies, which exacerbated inflation and worsened economic hardship.

Additionally, inconsistent Customs regulations and fluctuating exchange rates were identified as major barriers to investment and operational stability for businesses.

Stakeholders at the event advocated for stronger collaboration between the public and private sectors, urging policymakers to:

  • Engage business associations like NASME, NASSI, and NECA in economic decision-making.
  • Reduce government interference in private sector affairs.
  • Create policies that foster long-term stability and business growth.

A Call for Proactive Policy Reforms

As Nigeria grapples with economic uncertainty, the survival of MSMEs remains crucial to job creation and national development. NESG has called for policy consistency, investment-friendly regulations, and strategic economic interventions to ensure businesses can thrive in an increasingly volatile environment.

The road ahead requires bold reforms and stronger public-private partnerships to revive Nigeria’s business ecosystem and sustain economic progress.

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted

Share post:

Subscribe

Latest News

More like this
Related

BREAKING: 20 NYSC Prospective Corps Members Freed After Kidnappers Demand N50m Each

Twenty prospective members of the National Youth Service Corps...

Improve welfare of Nigerian Teachers 

I was and I am a teacher. I was a Parents Teachers Association hired teacher at Oba Akinbiyi High School (II), Mokola, Ibadan in 1997. Apart from that stint, I also taught briefly at a private secondary school during my National Youth Service at Asaba, Delta State as well as at another private secondary school at Akowonjo area of Lagos state around 2001 / 2002. My late father, Deacon Isaac Oyeniyi Ojo taught for about 40 years across several primary schools in Oyo and Osun sates and retired as a headmaster in 1995. At present, I don’t just teach but train people across various democratic institutions namely election management bodies (INEC and SIECs), political parties, media, national and state legislative assemblies, police, and civil society organisations. Information gleaned from the website of UNESCO says “World Teachers’ Day is held annually on 5 October to celebrate all teachers around the globe. It commemorates the anniversary of the adoption of the 1966 ILO/UNESCO Recommendation concerning the Status of Teachers, which sets benchmarks regarding the rights and responsibilities of teachers, and standards for their initial preparation and further education, recruitment, employment, and teaching and learning conditions. In 2026, the Day marks the 60th anniversary of the Recommendation concerning the Status of Teachers.” In Nigeria, this year's celebration focused on five interconnected pillars: innovation, mobility, Artificial Intelligence, inclusion, and professional excellence. The Minister of State for Education, Prof. Suwaiba Ahmad, announced that the selection process for the 2026 World Teachers' Day awards was digitised to promote transparency, accountability, and efficiency. The celebration includes a symposium, a march-past featuring state flags and cultural attire, and the recognition of 14 awardees, including the first, second, and third best teachers receiving prestigious car gifts, while the best Federal Unity College received a bus. Other prizes include laptops. In commemoration of the World Teachers Day, Dr. Akin Ayeni and I were guests on a breakfast programme on Ekiti 91.5 FM, Ado Ekiti last Monday where we dissected the plights of Nigerian teachers and proffered solutions to them. The host was Ademola Adeleke. I enumerated some of the plights of Nigerian teachers to include: Low wages, insecurity, quackery, inadequate classrooms, lecture theatres, libraries and laboratories, high turnover of staff especially in private schools, high workloads, disrespects from parents, students and even government. I made a proverb on the programme. Elo ni teacher ngba, ti o ntuto s’owo ka’wo osu (meaning, how much does a teacher earn that he or she needs to use saliva to count salary). This was a random joke even among teachers when they used to collect their salary in cash. This day, they receive their wages via online money transfer. The proverb however is meant to drive home the paltry nature of the salaries and wages of teachers cum lecturers. I recall the sticker produced by Academic Staff Union of Universities many years ago which has the inscription “My take home pay cannot take me home”. That’s very instructive. On issue of insecurity, according to Daily Trust of October 1, 2022, “The registrar of the Teachers Registration Council of Nigeria, Professor Josiah Ajiboye, said attacks on schools by insurgents have claimed the lives of more than 2,295 teachers in the North East between 2009 and 2022.” The PUNCH in its June 5, 2026 online edition reported that “An estimated 603 students and teachers have been kidnapped in seven mass abductions across schools in Nigeria between March 2024 and May 2026 under President Bola Tinubu, despite the N145bn Safe Schools Initiative.” Recall that on May 15, 2026, a total of 46 persons – seven teachers and 39 students – were abducted from Community High School Ahoro-Esinele and Yawota Baptist Nursery and Primary School in Oriire Local Government Area of Oyo State. Thankfully, most of them were rescued though two teachers were murdered by the bandits.  Michael Oyedokun, was reportedly beheaded, while John Olaleye, was shot dead during the attack. It is noteworthy that some university lecturers have also been abducted in the past. The heavy workloads and low wages have resulted into brain drain and high turnover of teaching staff across our academic institutions. Many education graduates don’t want to teach. The lecturers in tertiary institutions are leaving in droves for greener pasters abroad. Many teachers today take the job as a last resort when better options are not available. Many of the private schools recruit untrained teachers. They side step the federal government policy of having every teacher certified by Teachers Registration Council of Nigeria. Recall that the TRCN regulates the teaching profession in Nigeria by setting standards, accrediting teacher education programmes, registering qualified teachers, and enforcing professional ethics.  It establishes national minimum standards for teacher education and monitors teacher training institutions, including Colleges of Education, university faculties, polytechnic schools of education, and the National Teachers Institute. Unlike in the 20th century when teachers in Nigeria were widely respected and seen as mini-God, in contemporary times, there have been situation where pupils and students openly abuse teachers, bully them and even beat them up. Some irresponsible parents have even gone to school to harass and molest teachers for caning or meting out corporal punishments to their wards and children. Thus, many teachers now work in an atmosphere of fear. Mrs. Comfort Fasunwon is a multiple award-winning teacher in Ondo State, here is an excerpt from what she wrote on her Facebook wall in commemoration of the 2026 World Teachers Day “To my fellow teachers, today.  Teaching is not always easy. There are days when the workload is heavy, resources may be limited, and the results of our efforts may not be immediately visible. Yet we continue to show up, teach, encourage, correct, inspire and believe in our students. Sometimes, the greatest reward of a teacher is not a certificate or trophy. It is seeing a child who once struggled begin to understand. It is watching a student grow in confidence. It is meeting a former student years later and hearing the words, “Ma or sir, you made a difference in my life.” My plead to government at all level as well as private schools’ owners is to ensure that their schools are well resourced and staff welfare is made paramount. Professionalism should be their watchwords. Teachers’ rewards shouldn’t be in heaven; a foretaste of that should be here on earth. Best wishes to fellow teachers and nation builders. Remember the popular song that says “Anyone who hates teachers will homeschool his or her  child” I.G: @jideojong  

Over 22,000 Arms Recovered Across Nigeria in 10 Years – NCCSALW

The National Centre for the Control of Small Arms...

NBA Calls for End to Torture, Deaths in Nigeria’s Detention Centres

The Nigerian Bar Association (NBA) has called for tougher...
Join us on
For more updates, columns, opinions, etc.
WhatsApp
0
Would love your thoughts, please comment.x
()
x