The challenging economic environment has resulted in the closure of approximately 30 percent of Micro and Small Medium Enterprises (MSMEs) in Nigeria, equating to about 7.2 million of the country’s estimated 24 million MSMEs, according to the Nigerian Economic Summit Group (NESG). This information was shared by Dr. Segun Omisakin, Chief Economist and Director of Research at NESG, during the launch of the 2025 Private Sector Outlook. He highlighted key economic trends, challenges, and opportunities for businesses navigating the evolving Nigerian economy.
Omisakin noted that this situation emphasizes Nigeria’s economic vulnerability, adding that the country experienced an estimated loss of N94 trillion due to multinational divestments and business closures during this period. He stated, “Between 2023 and 2024, multinational divestments and business closures led to an estimated 94 trillion Naira economic loss. Furthermore, 30 percent of Nigeria’s 24 million registered MSMEs shut down during this period, underscoring the country’s economic vulnerability.”
In an in-depth analysis of the private sector’s performance and economic risks in 2024, Omisakin mentioned that while foreign exchange availability improved due to policy reforms, the nation’s currency experienced significant depreciation. The official exchange rate averaged 1,479.9 Naira to the US dollar in 2024.
He explained that although trade surpluses and increased foreign capital inflows were recorded, fiscal constraints remained, with public debt rising to N142.3 trillion Naira as of September 2024.
Looking ahead to 2025, he emphasized the necessity for businesses to adapt to economic uncertainties and implement strategic measures for growth and resilience.
In her opening remarks, NESG Board Director Mrs. Wonu Adetayo highlighted the crucial role of the private sector in fostering a resilient economy. She noted that despite structural weaknesses and macroeconomic volatility, Nigeria saw an improvement in economic growth in 2024, driven by reform efforts that enhanced investment levels.
