The reality is grim and frightening, and the statistics alarming. Recently the Nigeria Economic Summit Group raised an alarm that harsh economic environment has forced 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.
This is not a good omen for the economic development of the country, and in the process thousands of jobs might have lost, creating a further surge in the rate of unemployment in the country.
This ugly statistics further highlights the country’s economic vulnerability, especially in the face of growing army of policies that may not really be business – friendly. Reportedly, it was also said that the country 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,” the Economic Summit Group noted.
Although it can not be denied that trade surpluses and increased foreign capital inflows were recorded, fiscal inhibitions and constraints continued to fester , distorting what ever little gains might have been recorded as public debt climbed to N142.3 trillion as of September 2024.
It’s our considered opinion that the federal government needs to do more considering the role of the private sector in the economic development.
We also admit that in spite of the noticeable structural weaknesses and macroeconomic volatility, Nigeria recorded an economic growth improvement in 2024, driven by reform efforts that enhanced investment levels.
Nigerian economy expanded by 3.4% in 2024, the highest growth since 2021, with the number of expanding activity sectors increasing from 32 in 2023 to 38 in 2024.
But we are quick to add that stagnant productivity and persistent macroeconomic imbalances have resulted in abysmal deterioration in the living standards of Nigerians and heightened economic distress.
There’s a need to curb insecurity and policies instability, given that no investors external or internal will be willing to risk their capital in an atmosphere of insecurity and policy somersaults moving like a quick sands.
Government must also as a matter of urgent importance address the issue of power. This is a sinequanon for investment. It’s also the greatest stimuli for the growth and development of small businesses.
As the year progresses, there’s need for the government to also make the business climate for friendly and less inclement.
Farmers should be encouraged to produce more foods through incentives and also by offering more protection for them in the face of banditry and kidnapping.
When there is hunger in the land, then it becomes difficult to tackle insecurity, because a hungry man is an angry man.
In this regard, there’s a need for the government to declare emergency in food production, and go all out to ensure food security.
