The Nigeria Association of Small and Medium Enterprises (NASME) is calling on both federal and state governments to step up efforts in cushioning the harsh effects of inflation on small businesses across the nation.
This plea comes as SMEs continue to grapple with escalating production costs and a noticeable decline in consumer demand.
Speaking after the association's general meeting in Warri on Saturday, Lady Judith Nwachukwu, Chairperson of NASME's Delta State chapter, acknowledged recent policy reforms but emphasized the critical need for more targeted, flexible, and transparent interventions to ensure the survival of Nigeria's struggling SMEs.
"SMEs are the backbone of our economy and the engine room of national development," Nwachukwu stated. "But right now, our members are facing a multi-dimensional crisis—from escalating costs of raw materials to inflation-induced consumer fatigue. It is increasingly difficult just to stay in business, let alone grow."
Nwachukwu commended the Tinubu administration's recognition of SMEs as crucial to economic recovery, highlighting reforms such as the higher tax exemption threshold for small businesses, the 'Nigeria First' local content policy, and recent efforts to ease access to finance. While describing these as "steps in the right direction," she stressed that their implementation must be more accessible and impactful for grassroots entrepreneurs.
According to Nwachukwu, many SME operators are still locked out of loan facilities due to stringent bank-style conditions. "Intervention funds must be truly accessible. The standards should reflect the realities of small business owners, not large-scale corporations," she asserted.
She further pointed out how recent economic reforms—particularly the removal of fuel subsidies, exchange rate unification, and ongoing insecurity in Nigeria's food belt—have significantly increased the cost of doing business for SMEs, leaving them with very limited buffers to absorb these shocks.
In light of these challenges, Nwachukwu urged stronger collaboration between government and private sector stakeholders to ensure the SME sector meaningfully contributes to President Tinubu's Renewed Hope Agenda. "Our members want to succeed. They want to create jobs and grow the economy. But they need real, practical support," she emphasized.
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NASME also lauded the Delta State Government's approval of a ₦1 billion revolving fund for MSMEs, to be administered through the Bank of Industry (BoI) at a single-digit interest rate. "We are deeply grateful to Governor Sheriff Oborevwori for this forward-thinking intervention," Nwachukwu said, adding that it demonstrates a genuine understanding of the capital constraints faced by their members. She urged for the fund's transparent and prompt disbursement to maximize its impact.
Additionally, Nwachukwu expressed appreciation to the BoI for recently approving loan applications from NASME Delta members and encouraged the institution to ensure smooth and timely disbursement.
A significant highlight of the Warri meeting was the unveiling of the NASME Delta Multipurpose Cooperative Society, aimed at strengthening internal financial resilience among members. The cooperative will be led by Sir Hilary Ikem, the association's Public Relations Officer.
As inflation continues to bite, NASME's message is clear: Nigeria's economic revival cannot happen without small businesses—and keeping them alive requires more than promises. It requires access, inclusion, and policy that works from the ground up.
