The Nigerian Economic Summit Group (NESG) has raised concerns over the worsening economic climate, revealing that 30% of Nigeria's Micro, Small, and Medium Enterprises (MSMEs) have shut down due to mounting financial pressures.
Speaking at the launch of the 2025 Private Sector Outlook, NESG's Chief Economist and Director of Research, Dr. Segun Omisakin, disclosed that between 2023 and 2024, business closures and multinational divestments resulted in an estimated ₦94 trillion economic loss.
Omisakin highlighted that while policy reforms have improved foreign exchange liquidity, the naira experienced severe depreciation, averaging ₦1,479.9 per U.S. dollar in 2024.
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Additionally, Nigeria's public debt climbed to ₦142.3 trillion as of September 2024, further straining the country's fiscal position.
Despite trade surpluses and increased foreign capital inflows, the challenging business environment has made survival difficult for many enterprises.
Looking ahead to 2025, Omisakin stressed the need for businesses to embrace strategic adaptation measures to withstand economic uncertainties.
The NESG also called for stronger public-private sector collaboration, urging that key 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) be actively involved in economic policymaking to drive sustainable growth.
