NESG: 30% of MSMEs shut down between 2023 and 2024 amid rising challenges

The Nigerian Economic Summit Group (NESG) says private sector remains vulnerable, with 30 percent of micro, small and medium enterprises (MSMEs) shutting down between 2023 and 2024.
According to a statement on Saturday, Segun Omisakin, NESG’s chief economist, spoke at the 2025 private sector outlook launch, outlining major risks confronting businesses in Nigeria.
The risks, he said, include foreign exchange (FX) shortages and volatility, with the naira averaging N1,479.9 per dollar in 2024; rising public debt, which hit N142.3 trillion as at September 2024; and multinational exits and MSME closures, leading to an estimated N94 trillion economic loss
“Nigeria’s private sector remains vulnerable, with 30% of MSMEs shutting down between 2023 and 2024,” Omisakin said.
Looking ahead to 2025, the economist stressed the need for businesses to adapt to economic uncertainties and employ strategic measures for growth and resilience.
On her part, Wonu Adetayo, NESG’s board director, spoke at the 2025 private sector outlook launch
Adetayo said private sector growth is crucial for Nigeria’s economic recovery.
She noted that while reforms such as fuel subsidy removal and exchange rate (FX) harmonisation boosted investment levels in 2024, structural weaknesses and inflationary pressures continue to impact businesses.
“The private sector must be adaptable and innovative to withstand economic shocks,” Adetayo said.
“Despite a 3.4% GDP growth in 2024, businesses still struggle with rising costs, forex volatility, and policy uncertainty.”
During a panel session on Nigeria’s ongoing economic reforms, Dele Kelvin Oye, president of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and chairman of the Organised Private Sector of Nigeria (OPSN) said foreign direct investors prioritise policy stability over the exchange rate.
Oye said investors are willing to engage regardless of currency value, as long as policies remain consistent.
“Government must act as a facilitator, not a competitor, in economic affairs. Business organizations should always be in the room when key negotiations take place to ensure broad-based economic benefits,” Oye said.
Other panellists also warned against government “overreach” into private sector affairs, urging policymakers to recognise business organizations as essential stakeholders in negotiations on trade and investment.
The panellists called for stronger collaboration between the public and private sectors, stressing that business associations like the Nigerian Association of Small and Medium Enterprises (NASME), the Nigerian Association of Small-Scale Industrialists (NASSI), and the Nigeria Employers’ Consultative Association (NECA) must be actively involved in economic decision-making.