By Kolawole Ojebisi
The Nigerian Economic Summit Group (NESG) has lamented the prevailing harsh economic condition in the country stating that it has resulted in the closure of about 30 per cent of Nigeria’s Micro and Small Medium Enterprises.
Dr. Segun Omisakin, Chief Economist and Director of Research at NESG, made the disclosure on Thursday during the launch of the 2025 Private Sector Outlook.
While speaking, Omisakin highlighted key economic trends, challenges, and opportunities for businesses navigating the evolving Nigerian economy.
He said, “Between 2023 and 2024, multinational divestments and business closures led to an estimated 94 trillion naira economic loss. Additionally, 30% of Nigeria’s 24 million registered MSMEs shut down during this period, underscoring the country’s economic vulnerability.”
Providing an in-depth analysis of the private sector’s performance and economic risks in 2024, he noted that while foreign exchange availability improved due to policy reforms, Nigeria’s currency depreciated significantly, with the official exchange rate averaging 1,479.9 naira to the U.S. Dollar in 2024.
He noted that although trade surpluses and increased foreign capital inflows were recorded, fiscal constraints persisted, with public debt rising to 142.3 trillion Naira as of September 2024.
Looking ahead to 2025, Omisakin stressed the need for businesses “to adapt to economic uncertainties and employ strategic measures for growth and resilience.”
The Group also called for “Stronger collaboration between the public and private sectors, and ensuring 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) be actively involved in economic decision-making.”
