The Nigerian Economic Summit Group (NESG) has revealed that about 30% of Nigeria’s Micro, Small, and Medium Enterprises (MSMEs) have closed down due to the country’s challenging economic environment.
Dr. Segun Omisakin, Chief Economist and Director of Research at NESG, shared this alarming statistic during the launch of the 2025 Private Sector Outlook, where he discussed key economic trends, challenges, and opportunities for businesses in Nigeria.
Omisakin highlighted that between 2023 and 2024, Nigeria experienced significant economic setbacks, including multinational divestments and business closures, resulting in an estimated 94 trillion Naira loss. He emphasized that the closure of 30% of Nigeria’s 24 million registered MSMEs is a stark reflection of the country’s economic vulnerability.
In his detailed analysis of the private sector’s performance and economic risks for 2024, Omisakin pointed out that although policy reforms had improved foreign exchange availability, the Nigerian currency had depreciated sharply. The official exchange rate averaged 1,479.9 Naira to the U.S. Dollar in 2024.
While trade surpluses and increased foreign capital inflows were recorded, fiscal constraints remained a challenge, with public debt rising to 142.3 trillion Naira as of September 2024.
Looking ahead to 2025, Omisakin stressed the importance of businesses adapting to economic uncertainties and implementing strategic measures for growth and resilience.
The NESG also called for stronger collaboration between the public and private sectors. It urged that business associations, including the Nigerian Association of Small and Medium Enterprises (NASME), the Nigerian Association of Small-Scale Industrialists (NASSI), and the Nigeria Employers’ Consultative Association (NECA), be actively involved in economic decision-making processes to better support businesses during these challenging times.
