The Nigerian Economic Summit Group (NESG) has revealed that approximately 30% of the country’s Micro, Small, and Medium Enterprises (MSMEs) shut down between 2023 and 2024 due to harsh economic conditions.
This translates to an estimated 7.2 million businesses out of Nigeria’s 24 million registered MSMEs.
Speaking at the launch of the 2025 Private Sector Outlook, NESG’s Chief Economist and Director of Research, Dr. Segun Omisakin, disclosed that the country suffered an estimated economic loss of N94 trillion during this period due to business closures and multinational divestments.
“Between 2023 and 2024, multinational divestments and business closures led to an estimated N94 trillion economic loss. Additionally, 30% of Nigeria’s 24 million registered MSMEs shut down, highlighting the country’s economic vulnerability,” Omisakin stated.
Despite policy reforms improving foreign exchange availability, the naira experienced significant depreciation, with the official exchange rate averaging 1,479.9 naira per US dollar in 2024. While the economy expanded by 3.4%—its highest growth since 2021—structural weaknesses, stagnant productivity, and macroeconomic imbalances continued to affect living standards.
NESG Board Director, Mrs. Wonu Adetayo, emphasized the private sector’s crucial role in ensuring economic resilience and investment growth despite ongoing volatility. Panelists at the event stressed that investors prioritize policy stability over exchange rate fluctuations.
Business organizations, 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), were urged to actively shape economic policies.
Dele Oye, President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), called on the government to act as a facilitator rather than a competitor in economic affairs.
He underscored the importance of including business associations in key negotiations to promote broad-based economic benefits.
In response to the challenges facing small and medium-sized enterprises, the African Development Bank (AfDB) has arranged a $230 million trade finance package through Access Bank Plc to enhance forex accessibility, stabilize trade, and provide financial support for Nigerian SMEs.
The package includes a $170 million Trade Finance Line of Credit (TFLoC) to ensure forex liquidity for businesses, supporting the continuity of essential imports. Additionally, a $60 million Transaction Guarantee (TG) will protect confirming banks against payment risks on trade finance transactions.
Before disbursement, the Central Bank of Nigeria (CBN) must approve the project to ensure compliance with local forex regulations. The initiative is expected to boost SME growth, support women entrepreneurs, and improve access to essential imports.
