A presidential aspirant of the African Democratic Congress, Mohammed Hayatu-Deen, has raised concerns over the mounting economic pressure facing Nigeria’s small and medium-sized enterprises (SMEs), warning that the sector is struggling under rising operating costs and worsening insecurity.
Hayatu-Deen made the remarks during a meeting with young entrepreneurs as part of broader consultations focused on economic recovery, youth empowerment, and private sector growth.
Entrepreneurs Battle Rising Operating Costs
According to the ADC presidential hopeful, conversations with business owners revealed increasing frustration over:
- High energy expenses
- Rising transportation costs
- Inflation-driven raw material prices
- Reduced profit margins
- Limited business expansion opportunities
He said many SMEs are now focused more on survival than growth, despite being responsible for a significant share of Nigeria’s employment generation.
“The environment has become increasingly difficult for entrepreneurs trying to scale their businesses,” Hayatu-Deen stated, noting that persistent economic instability is weakening business confidence across multiple sectors.
SMEs Remain Central to Nigeria’s Economy
Hayatu-Deen described SMEs as the backbone of Nigeria’s economy, stressing that the health of the sector directly affects:
- Employment levels
- Household income
- Consumer spending
- Economic productivity
He warned that continued pressure on small businesses could worsen unemployment and reduce opportunities for young Nigerians.
The former banking executive also highlighted the need for policies that encourage enterprise development, innovation, and long-term investment.
Proposed Reforms Target Business Environment
The ADC aspirant outlined several areas he believes require urgent reform to support businesses, including:
- Energy supply improvements
- Infrastructure upgrades
- Better access to finance
- Streamlined regulations
- Tax reforms
- Enhanced security
According to him, insecurity remains one of the biggest obstacles to economic recovery, affecting farmers, manufacturers, transport operators, traders, and investors alike.
He argued that no economy can grow sustainably when businesses operate under constant uncertainty and rising operational risks.
Investor Confidence and Economic Stability
Hayatu-Deen said rebuilding investor confidence would be essential for economic expansion and job creation.
He emphasized that creating a productive economy requires policies that lower the cost of doing business while supporting entrepreneurship and industrial growth.
Analysts note that SMEs in Nigeria continue to face multiple structural challenges, including inflation, foreign exchange volatility, weak infrastructure, and limited financing access, all of which have intensified over the past two years.
