The harsh economic environment led to the closure of about 30 percent of Micro and Small Medium Enterprises (MSMEs) in Nigeria, amounting to about 7.2 million of the country’s estimated 24 million MSMEs, between 2023 and 2024, the Nigerian Economic Summit Group (NESG) revealed.
Chief Economist and Director of Research at NESG, Dr. Segun Omisakin, disclosed this during the launch of the 2025 Private Sector Outlook, while highlighting key economic trends, challenges, and opportunities for businesses navigating the evolving Nigerian economy.
He noted that the development underscored the country’s economic vulnerability, adding that Nigeria also lost an estimated N94 trillion to multinational divestments and business closures during the period.
“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.
Giving an in-depth analysis of the private sector’s performance and economic risks in 2024, Omisakin noted that while foreign exchange availability improved due to policy reforms, the nation’s currency depreciated significantly, with the official exchange rate averaging 1,479.9 Naira to the US dollar in 2024.
According to him, although trade surpluses and increased foreign capital inflows were recorded, fiscal constraints persisted, with public debt rising to N142.3 trillion as of September 2024.
Projecting into 2025, he emphasised the need for businesses “to adapt to economic uncertainties and employ strategic measures for growth and resilience”.
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