The Nigerian Economic Summit Group ,NESG, has decried the alarming numbers of micro and small businesses that has shutdown in the spate of one year, alerting the President Bola Tinubu’s administration of its catorosphotic implications if the tide is not reversed.
According to the NESG, between 2023 and 2024 alone, out of of the country’s estimated 24 million MSMEs, about 7.2 million businesses has shutdown due to harsh economic environment.
Chief Economist and Director of Research at NESG, Dr. Segun Omisakin, who disclosed this during the launch of the 2025 Private Sector Outlook, said the figure represents 30 per cent of Nigeria’s total MSMEs strength.
He said Nigeria also lost an estimated N94 trillion to multinational divestments and business closures during the period.
“Between 2023 and 2024, multinational divestments and business closures led to an estimated 94 trillion Naira economic loss. Additionally, 30% of Nigeria’s 24 million registered MSMEs shut down during this period, underscoring the country’s economic vulnerability,” he stated.
While stakeholders noted that government have not done enough to support small businesses to withstand the harsh economic environment, they blamed some of the government reforms for the unprecedented shutdown of businesses.
Giving an in-depth analysis of the private sector’s performance and economic risks in 2024, Omisakin noted that while foreign exchange availability improved due to policy reforms, the nation’s currency depreciated significantly, with the official exchange rate averaging 1,479.9 Naira to the US dollar in 2024.
According to him, although trade surpluses and increased foreign capital inflows were recorded, fiscal constraints persisted, with public debt rising to N142.3 trillion as of September 2024.
Projecting into 2025, he emphasised the need for businesses “to adapt to economic uncertainties and employ strategic measures for growth and resilience”.
In her opening remarks, NESG Board Director, Mrs. Wonu Adetayo, emphasised the vital role of the private sector in shaping a resilient economy.
According to her, despite structural weaknesses and macroeconomic volatility, Nigeria experienced an economic growth improvement in 2024, driven by reform efforts that enhanced investment levels.
She pointed out that Nigeria’s economy expanded by 3.4% in 2024, the highest growth since 2021, with the number of expanding activity sectors increasing from 32 in 2023 to 38 in 2024.
Adetayo however noted that stagnant productivity and persistent macroeconomic imbalances led to deteriorating living standards and heightened economic distress.
On his part, the President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture , NACCIMA, Dele Oye, who is also the Chairman, Organised Private Sector of Nigeria ,OPSN, said “Government must act as a facilitator, not a competitor, in economic affairs. Business organisations should always be in the room when key negotiations take place to ensure broad-based economic benefits.”
