The Nigerian Economic Summit Group (NESG) has raised alarm following the closure of over 7.2 million businesses in Nigeria.

According to NESG, approximately 30% of the country’s Micro, Small, and Medium Enterprises (MSMEs) have ceased operations between 2023 and 2024 due to harsh economic conditions.

This translates to an estimated 7.2 million businesses out of Nigeria’s 24 million registered MSMEs shutting down within two years.

The disclosure was made by NESG’s Chief Economist and Director of Research, Dr. Segun Omisakin, during the launch of the 2025 Private Sector Outlook.

He highlighted key economic trends, challenges, and opportunities that businesses must navigate in the evolving economic landscape of Nigeria.

According to Omisakin, Nigeria recorded an estimated economic loss of N94 trillion during this period due to business closures and multinational divestments.

“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,” he stated.

While policy reforms led to improved foreign exchange availability, the country’s currency significantly depreciated, with the official exchange rate averaging 1,479.9 Naira per US dollar in 2024.

Despite Nigeria’s economic expansion by 3.4% in 2024, the highest growth since 2021, structural weaknesses, stagnant productivity, and macroeconomic imbalances continued to affect living standards.

NESG Board Director, Mrs. Wonu Adetayo, stressed the importance of the private sector in ensuring economic resilience and investment growth, despite ongoing volatility.

Panelists at the event emphasized the need for private sector involvement in policy formulation, noting that investors prioritize policy stability over exchange rate fluctuations.

Business organizations such as the Nigerian Association of Small and Medium Enterprises (NASME), the Nigerian Association of Small-Scale Industrialists (NASSI), and the Nigeria Employers’ Consultative Association (NECA) were urged to take an active role in shaping economic decisions.

Dele Oye, President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), called on the government to act as a facilitator rather than a competitor in economic affairs.

He emphasized the necessity of including business associations in key negotiations to promote broad-based economic benefits.

In a move to support small and medium-sized enterprises, the African Development Bank (AfDB) has arranged a $230 million trade finance package through Access Bank Plc.

The funding is expected to enhance forex accessibility, stabilize trade, and provide financial support for Nigerian SMEs.

The package includes a $170 million Trade Finance Line of Credit (TFLoC) to provide forex liquidity for businesses, ensuring the continuity of essential imports. Additionally, a $60 million Transaction Guarantee (TG) will safeguard confirming banks against payment risks on trade finance transactions.