Economic Hardship Deepens As MSMEs Seek Urgent Relief
Small Businesses Cry Out as Costs Rise Nationwide
SMALL business owners across Nigeria have renewed calls for urgent intervention by the Federal Government and key stakeholders, warning that rising operating costs, inflation and policy inconsistencies are pushing many enterprises to the brink of collapse.
In separate interviews on Sunday in Abuja, operators across different sectors said worsening economic conditions had eroded profit margins, reduced consumer demand and weakened revenue generation, particularly among Micro, Small and Medium Enterprises (MSMEs).
Rising Costs and Shrinking Margins
Mr. Godwin Achakpa, a business owner in the Federal Capital Territory (FCT), described the current operating environment as increasingly hostile. According to him, high energy and power costs, coupled with logistical challenges, have significantly slowed productivity.
Achakpa said soaring inflation and persistent depreciation of the naira had further squeezed margins, forcing some small businesses to scale down or shut their doors entirely. He added that access to affordable finance remained limited, with commercial banks offering loans at interest rates many small operators could not sustain.
“Inconsistent government policies and regulatory bottlenecks have created an unpredictable business climate,” he said, noting that uncertainty makes long-term planning almost impossible for small enterprises.
Insecurity and Multiple Taxation
For Mrs. Agnes Okoro, who operates a business along the Karu/Nyanya axis, insecurity remains a major disruption to commercial activities. She said fear of attacks and theft has reduced business hours and discouraged customer movement, weakening local economies.
Okoro also complained about multiple taxation, noting that despite exemptions announced for small businesses, many still contend with overlapping levies imposed by different agencies.
“The business community wants relief programmes to be effectively implemented,” she said. “Intervention funds must be accessible, transparently disbursed and free from political bias.”
She stressed the need for improved infrastructure, particularly reliable electricity, transportation networks and digital connectivity, to boost competitiveness and restore confidence.
MSMEs Under Severe Pressure
Mr. Alfred Moses, a member of the Nigerian Association of Small and Medium Enterprises (NASME), said economic hardship was creating an extremely challenging environment for MSMEs nationwide.
He noted that poor electricity supply had forced businesses to rely on generators and solar alternatives, while repeated fuel price increases had raised daily operating expenses.
“High inflation and exchange rate volatility have driven up the cost of raw materials, especially imported inputs,” Moses said, adding that declining purchasing power had reduced sales volumes and profit margins.
He also pointed to limited access to finance, as banks continued to classify SMEs as high-risk ventures, demanding high interest rates and stringent collateral requirements.
Calls for Policy Consistency
President of the Abuja Chamber of Commerce and Industry (ACCI), Chief Emeka Obegolu, emphasised the importance of policy consistency and private-sector-led growth in strengthening the economy.
He warned that poorly managed reforms could lead to business closures, job losses and capital flight, urging authorities to create a predictable and enabling environment.
Government Response
Meanwhile, the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, reaffirmed the Federal Government’s commitment to supporting MSMEs through grants, low-interest loans and job creation initiatives aimed at easing economic hardship and building resilience.
