Muhammad Abdullahi, a member of the Central Bank of Nigeria's Monetary Policy Committee (MPC), has highlighted that imported inflation is a significant challenge to price stability and poses a growing concern for Nigerian small businesses. This is… Read on blog or Reader SMALL BUSINESS INSIGHTS Read on blog or Reader Imported inflation hampers Nigeria's economic stability, challenges small businesses By sbinsights on February 9, 2025 Muhammad Abdullahi, a member of the Central Bank of Nigeria's Monetary Policy Committee (MPC), has highlighted that imported inflation is a significant challenge to price stability and poses a growing concern for Nigerian small businesses. This issue comes at a time when the Federal Government is working to import food items in its drive to achieve food sufficiency nationwide. Abdullahi pointed out that imported food inflation is undermining the government's efforts to control rising inflation, which hit 34.80% in January 2025. The country's reliance on imported goods, particularly essentials like wheat and refined petroleum, makes it vulnerable to global price fluctuations and exchange rate volatility. In his statement after the 298th MPC meeting, where the committee decided to raise interest rates by 25 basis points to 27.5%, Abdullahi also discussed domestic supply-side constraints that contribute to rising costs. These include bottlenecks in the agricultural sector due to insecurity in food-producing regions, which limit food supply and push prices higher. Additionally, poor transportation infrastructure and inadequate storage facilities exacerbate food waste and increase costs for small businesses. Read also Imported inflation hampers Nigeria's economic stability, challenges small businesses NUC, Daimlas collaborate to boost AI opportunities for Nigerian small businesses SMEDAN, UNDP launch solar-powered Fashion Hub and Makerspace in Abuja US-China trade tensions to boost foreign investments in Africa – PAMA IFC, Lagos Free Zone seal $50M deal to boost industrial growth Abdullahi's statement emphasized that despite previous monetary tightening measures, the key drivers of inflation—such as food prices and energy costs—remain persistent. He noted that Nigeria's dependency on imports leaves the economy vulnerable to external pressures, particularly when global prices for essential imports like fertilizers, petroleum products, and wheat rise. This has a direct impact on small businesses, especially those reliant on transportation and logistics for importing goods. "To tackle inflation effectively, we need a multifaceted approach that integrates both monetary and structural policy actions," Abdullahi said. He also recommended targeted investments in transportation and storage infrastructure to reduce supply chain bottlenecks and lower the cost of goods, especially food, which will benefit small businesses across the country. Another member of the MPC, Philip Ikeazor, echoed concerns about Nigeria's import dependency, particularly in the non-productive sector. He pointed to the importation of Premium Motor Spirit (PMS) and gas, which accounted for $2.821 billion of Nigeria's top 10 imports in the second quarter of 2024. Despite government efforts to reduce these imports and improve the value of the naira, Ikeazor noted that the focus on non-productive imports continues to place pressure on foreign exchange resources, further straining small businesses reliant on stable currency exchange. The rising costs of energy, particularly the increase in Premium Motor Spirit prices, have significantly impacted transport and logistics costs, which are passed on to small businesses and consumers alike. Abdullahi stressed that addressing these supply-side constraints and improving domestic refining capacity could reduce Nigeria's reliance on imported refined petroleum products, ultimately stabilizing the economy and reducing inflationary pressures on small businesses.

SMALL BUSINESS INSIGHTS © 2025. Manage your email settings or unsubscribe. Get the Jetpack app Subscribe, bookmark, and get real‑time notifications - all from one app! Automattic, Inc. 60 29th St. #343, San Francisco, CA 94110

The National Universities Commission (NUC) has signed a Memorandum of Understanding with Daimlas Corporation, a global leader in Artificial Intelligence (AI) innovation, to establish a comprehensive AI ecosystem across Nigerian universities. This collab… Read on blog or Reader SMALL BUSINESS INSIGHTS Read on blog or Reader NUC, Daimlas collaborate to boost AI opportunities for Nigerian small businesses By sbinsights on February 8, 2025 The National Universities Commission (NUC) has signed a Memorandum of Understanding with Daimlas Corporation, a global leader in Artificial Intelligence (AI) innovation, to establish a comprehensive AI ecosystem across Nigerian universities. This collaboration is expected to create new opportunities for small businesses to harness the power of AI, driving innovation, productivity, and economic growth in Nigeria. The initiative aims to empower academic institutions with cutting-edge AI resources, research opportunities, and a platform for AI-driven education. The ultimate goal is to foster an AI ecosystem that will not only benefit universities but also small businesses across Nigeria by providing access to advanced technologies and research. At the signing ceremony in Abuja, the Executive Secretary of the NUC, Professor Abdullahi Ribadu, expressed optimism about the potential impact of the collaboration. He emphasized the importance of ensuring the success of the project, which will help Nigeria's universities remain at the forefront of AI research and development. "This is a great initiative, and we are excited about its potential to support universities and small businesses alike," Professor Ribadu said. Read also NUC, Daimlas collaborate to boost AI opportunities for Nigerian small businesses SMEDAN, UNDP launch solar-powered Fashion Hub and Makerspace in Abuja US-China trade tensions to boost foreign investments in Africa – PAMA IFC, Lagos Free Zone seal $50M deal to boost industrial growth Exporters report $10M loss in five days over CBN's new export system Joseph Wehbe, the CEO of Daimlas Corporation, highlighted the importance of AI in driving global economic growth and emphasized that the AI ecosystem being developed in partnership with the NUC would support small businesses, entrepreneurs, and startups. "In a fully functioning AI ecosystem, universities, research centres, labs, and entrepreneurs will all work together, providing pathways for businesses to participate in the growing AI economy," Wehbe explained. Wehbe also noted that Daimlas has successfully established similar ecosystems in locations such as New Jersey, Massachusetts, California, and Saudi Arabia, and expressed commitment to ensuring that Nigerian universities and small businesses have the tools and resources needed to thrive in the AI-driven world. He emphasized that the platform being developed with the NUC will provide Nigerian businesses access to AI technologies, allowing them to improve their operations and compete globally. With this collaboration, small businesses across Nigeria are set to benefit from AI-driven solutions that can improve productivity, efficiency, and innovation. The initiative is expected to open doors for entrepreneurship, innovation, and job creation, positioning Nigeria as a key player in the global AI economy.

SMALL BUSINESS INSIGHTS © 2025. Manage your email settings or unsubscribe. Get the Jetpack app Subscribe, bookmark, and get real‑time notifications - all from one app! Automattic, Inc. 60 29th St. #343, San Francisco, CA 94110

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), in partnership with the United Nations Development Programme (UNDP), has inaugurated a solar-powered Fashion Hub and Makerspace at the SMEDAN Common Facility Centre, Idu, Abuja. … Read on blog or Reader SMALL BUSINESS INSIGHTS Read on blog or Reader SMEDAN, UNDP launch solar-powered Fashion Hub and Makerspace in Abuja By sbinsights on February 8, 2025 The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), in partnership with the United Nations Development Programme (UNDP), has inaugurated a solar-powered Fashion Hub and Makerspace at the SMEDAN Common Facility Centre, Idu, Abuja. Speaking at the launch, Charles Odii, Director General of SMEDAN, highlighted that the initiative is aimed at tackling persistent power outages that hinder the efficiency of entrepreneurs and small businesses across Nigeria. According to SMEDAN, unreliable electricity supply has been a major challenge for small and medium enterprises (SMEs), leading to production disruptions, high costs of alternative power sources like generators, and customer dissatisfaction, ultimately slowing business growth. Empowering Small Businesses with Sustainable Energy The newly established solarised hub and makerspace is expected to significantly reduce production costs for small businesses by providing a free, fully-equipped workspace with 24-hour electricity. "Small businesses can now operate here at no cost. They don't have to worry about power or purchasing expensive machines. Once they produce their goods, they can store them in the warehouse next door and distribute them across the 36 states and the FCT at lower costs. This means more revenue, higher productivity, and business expansion," Odii stated. Read also SMEDAN, UNDP launch solar-powered Fashion Hub and Makerspace in Abuja US-China trade tensions to boost foreign investments in Africa – PAMA IFC, Lagos Free Zone seal $50M deal to boost industrial growth Exporters report $10M loss in five days over CBN's new export system FG equips youths, women with ICT, AI skills for modern farming UNDP's Commitment to SME Growth in Nigeria Ms. Elsie Attafuah, UNDP Resident Representative in Nigeria, reaffirmed the organization's commitment to fostering economic growth for Nigerian SMEs. She emphasized that with over 40 million micro, small, and medium enterprises (MSMEs) in Nigeria, supporting their growth is crucial for job creation and economic stability. Ms. Attafuah also introduced the Timbuktu Initiative, a UNDP-backed program set to establish the University Port by May, in collaboration with Nigerian public universities. This initiative aims to support at least 10,000 startups by promoting innovation and entrepreneurship. Calls for Diaspora Support and Youth Development At the event, Senator Natasha Akpoti-Uduaghan, Chairperson of the Senate Committee on Diaspora Affairs and NGOs, advocated for harnessing diaspora resources to boost local entrepreneurship. She proposed leveraging diaspora funding, expertise, and technology to enhance productivity and increase Nigeria's export potential. She also stressed the need to address the "Japa" syndrome, where skilled Nigerians migrate abroad in search of better opportunities. Additionally, Olawande Ayodele, Minister of State for Youth Development, announced the federal government's plan to launch the Nigeria Youth Academy, a skill development program in local languages. This initiative aims to equip Nigerian youth with valuable skills, fostering economic growth and reducing unemployment. With this initiative, SMEDAN and UNDP reaffirm their commitment to empowering Nigerian entrepreneurs, boosting local manufacturing, and fostering a resilient SME sector through sustainable energy solutions and strategic partnerships.

SMALL BUSINESS INSIGHTS © 2025. Manage your email settings or unsubscribe. Get the Jetpack app Subscribe, bookmark, and get real‑time notifications - all from one app! Automattic, Inc. 60 29th St. #343, San Francisco, CA 94110