General News
50% of SMEs in Nigeria were Unable to Provide Consistent income to Workers – New Small Firm Diaries Research
Financial Access Initiative (FAI) research center of New York University (NYU) together with the Nigerian National Bureau of Statistics (NBS) this week released the results of the Nigeria Small Firm Diaries (SFD) study. Supported by the Mastercard Center for Inclusive Growth (CFIG), the Bill & Melinda Gates Foundation (BMGF), and the Argidius Foundation, the global research project provides insight into the financial lives of small businesses in seven countries across Latin America, Sub-Saharan Africa and Asia.
Participants at the Small Firm Diaries Nigeria Research report launch at the Lagos Business School on Tuesday, 25th July 2023.
Results from the Nigeria study
In Nigeria, the study collected data from 161 small businesses in urban, suburban, or semi-rural areas surrounding three locations: Enugu, Kaduna, and Lagos, between August 2021 and August 2022. The study was focused on three industries—light manufacturing, agri-processing, and services—which all play a key role in Nigeria’s economic growth and development.
The study found that the Nigerian firms earn less than firms in the other countries studied. Half of the firms earned less than NGN 223,250 in monthly revenue (PPP USD 1,547) 1 . About half (46%) of the Nigerian firms reported holding a loan of any kind, most of these from informal sources, including suppliers, friends, and family. The research also concentrated on the welfare of employees in small firms, finding that the firms were not able to provide consistent income to workers.
Insights from the research illuminate how small businesses in Nigeria are faring when it comes to: 1 World Bank PPP Rates, NGN/PPP = 152.57
Volatility: The Nigerian small firms, like those in the other countries studied, experience volatile earnings: both revenue and expenses fluctuate from month-to-month.
Desire for growth and stability: When asked about their vision for their business, a large group of Nigerian firms (44%) said they wanted to both grow and gain stability. This population aspires to grow, but does not want to take on the additional risk (they already face a great deal of risk—for instance: fluctuations in demand, rising input prices, supply chain delays, employee issues) that is necessary for rapid growth. They want step-by-step growth that helps reduce volatility and risk.
Financial inclusion: Compared with other countries in the study, Nigerian firms have high rates of bank account ownership: 97% of small firm owners in Nigeria have bank accounts for business—more than in Kenya (79%), Colombia (70%), or Indonesia (65%). However, usage of accounts is less comprehensive, with only 20% of Nigerian firms moving more than three quarters of their transactions through bank accounts. Cash is still the dominant mode of transaction for this segment.
Digital financial services: Nigerian small firm owners use technology — three-quarters use either a smartphone or computer, or both for their business — as well as digital financial services, particularly debit cards, mobile banking, and ATMs. However, they use mobile wallets for business purposes at very low rates.
Credit gaps: Data from the study shows that working capital and liquidity are bigger needs to small firms than investment capital. Despite access to finance being a major barrier to firm owners’ vision for success, more than 40% of firm owners in Nigeria say they “rarely” or “never” need a loan, indicating that products in the market are not accessible or don’t meet their needs. Firms closely match revenues and expenses on a month-to-month basis, which also helps confirm that they lack working capital for day-to-day liquidity needs. Firms rarely take on any operating risk or expansion/growth opportunities that could result in negative monthly cash flow.
Job security: Employment at small firms is precarious. The number of jobs in a firm changes from month to month, and the individuals filling those jobs change frequently. Employee pay varies considerably even during the months they are working at a small firm. Only one-fifth of the small firm employees received their salaries continuously through the study; more than half of employees worked at the same firm for fewer than half of the months studied.
Employee welfare: Some 63% of employees in Nigeria reported difficulties with finances indicative of low-income status, including 51% who reported that a child in their household had not eaten enough in the past week. Both of these figures were higher in Nigeria compared to global sample averages.
In general, the study concluded that stability and growth is a priority for the entrepreneurs who participated in the year-long study. According to the research, these firms face high volatility in income and expenses. They cited “access to finance,” followed by “rising supply costs” as major barriers to achieving their vision of growth and stability.
About the Small Firm Diaries study
The Small Firm Diaries is a global research project conducted between 2021 and 2023 in seven countries: Kenya, Nigeria, Uganda, Ethiopia, Indonesia, Fiji and Colombia. The study aims to improve the understanding of how small businesses can overcome the barriers they face to prosper in the modern economy and contribute to reducing poverty.
In each country, a team of field researchers visited a sample of small business owners in low-income neighborhoods weekly for one full year to collect quantitative and qualitative data on their financial flows. This information sheds light on the economic decision-making, strategies, and constraints of small businesses as they navigate the effects of changes in local and global markets.
The Financial Access Initiative (FAI) research center of New York University, together with partners at the National Bureau of Statistics and the Lagos Business School, anticipate that study results will inform the design of future development policies, financial services and tools to help small businesses and their employees in Nigeria to prosper.
“As the premier agency for the collection, publication, and dissemination of official statistics on Nigeria, NBS was proud to collaborate with the international research team for the Small Firm Diaries project. This study is unique in Nigeria—it is the first large-scale project to gather high-frequency data from businesses of this size—and will allow policymakers to better understand and address the challenges facing these businesses,” said Statistician General Adeyemi Adeniran of the National Bureau of Statistics.
“At the Lagos Business School, we develop the next generation of business owners in Nigeria and Africa. This kind of data, which shines a light on the volatility facing small businesses and their working capital needs, is what we need to inform both government and private sector players who seek to develop policies, products, and services that reduce inequality and increase financial security amongst financially underserved communities,’ said Olayinka David-West, Associate Dean and Professor of Information Systems at the Lagos Business School.
“Small businesses have proved their resiliency in recent years, but still face many pressures to remain profitable. In our work to empower them across the globe as drivers of economic activity and growth, research like this is incredibly insightful. Knowing precisely what challenges small business owners are facing and how they see the future allows us to provide better and more tailored support, and ultimately, better and more meaningful outcomes. We’re proud to support this research, and we hope it can serve as a resource to small business support organizations in the public, private, and social sectors,” said Tania Kruger, Vice President and Head of SME Product & Commercialization, EEMEA at Mastercard.
“MSMEs are by far the biggest employer in low and middle-income economies. Despite decades of statistical research, fundamental questions remain about why some grow, and some stagnate. Our aim with this study has been to try to understand small firms from the bottom-up, by listening closely to how entrepreneurs and workers make choices on their own terms,” said Jonathan Morduch, Executive Director of the Financial Access Initiative and Professor of Public Policy and Economics at New York University.
“We hope the findings from the Small Firm Diaries will be used by others in their own research and initiatives to address the challenges facing small businesses in low- and middle-income communities in Nigeria, and around the world,” said Michelle Kempis, Associate Director of the Financial Access Initiative at New York University.
Uses and application of the study
The reports presented today—the Nigeria Country Data Overview and the Financial Services Report—will be followed by additional analysis and publications in the coming months. The research team will continue to analyze data and publish reports on the Nigerian small firms, including adding further global comparisons, as they seek to collaborate with partners in the public and private sectors to benefit small businesses in Nigeria.
The study aims to guide the policies and practices of a wide variety of players and stakeholders, and study results enable companies and governments to design or improve products and programs that increase the capacity and productivity of small businesses. It will also enable organizations to design financial services products, including digital financial services, that better meet the liquidity and investment needs of small businesses so that they can expand their businesses in terms of income, productivity, employment, and wages paid.
Economic and Financial Crimes Commission (EFCC) has partnered with the National Space Research and Development Agency (NASRDA) to deploy advanced space and geospatial technologies in investigations and asset management.
Ola Olukoyede, executive chairman of the EFCC,
The move is expected to deepen transparency, strengthen asset recovery and curb economic sabotage according to a statement by Dele Oyewale, head, Media and Publicity, EFCC.
He said that the partnership was formalised through the signing of a Memorandum of Understanding (MoU) on Thursday in Abuja
The agreement is aimed at strengthening inter-agency collaboration, particularly in the areas of investigations, asset tracking and fraud risk assessment, marking a new phase of cooperation between the anti-graft agency and Nigeria’s space research and regulatory authority.
Speaking at the signing ceremony, Ola Olukoyede, executive chairman of the EFCC, described the agreement as a practical demonstration of the power of collaboration among government agencies.
He noted that closer cooperation would make it easier for institutions to effectively deliver on their statutory mandates.
According to Olukoyede, the MoU clearly defines the responsibilities of both agencies and establishes a framework for sustained cooperation.
He disclosed that a special monitoring and implementation team would be constituted to ensure the effective operationalisation of the agreement and to periodically review its impact.
“We will put a team together that will monitor the operationalisation of this MoU and also review the effectiveness of the platform from time to time.
“When agencies work together in the spirit of collaboration, it not only enhances efficiency but also encourages other ministries, departments and agencies to explore similar partnerships in the overall interest of national development”, he said.
Explaining the specifics of the partnership, the EFCC chairman said NASRDA would provide advanced technological tools to boost the Commission’s investigative capacity and asset tracking, while the EFCC would deploy its expertise to support the agency in fraud risk assessment.
“We will support you in the area of fraud risk assessment, and you will support us in promoting our investigative capacity.
“Where our eyes cannot get to, with the aid of your technology, we will be able to get there”, Olukoyede said.
He noted that the collaboration would be particularly beneficial to investigations into illegal mining activities, which have been linked to economic sabotage and rising insecurity in parts of the country.
“With the technology you are going to support us with, we will be able to identify some of these areas,” he added.
Olukoyede further expressed optimism that the partnership would significantly enhance the EFCC’s asset management processes, stressing that asset recovery remains one of the core pillars of the Commission’s mandate.
He explained that recovered assets are scattered across the country and exist under different legal statuses, including interim and final forfeiture.
“In some of these places, we may not have enough personnel to physically secure the assets. But with your support, we will be able to deploy geospatial technology and asset tagging devices to monitor both movable and immovable assets in a transparent and accountable manner”, he said
In his remarks, Matthew Adepoju, director-general and chief executive officer of NASRDA, welcomed the partnership, describing the MoU as a major milestone in the pursuit of justice and regulatory compliance within Nigeria’s space ecosystem.
Adepoju stressed that space-related activities are strictly regulated in developed economies and should be treated with similar seriousness in Nigeria, particularly in view of the potential misuse of satellite assets.
“You cannot go anywhere in Europe, continental America or the Far East and be doing business in the space ecosystem without the country ensuring that you are doing the right thing.
“We know for a fact that some satellite assets are being used negatively in driving insecurity in the country”, he said.
He also raised concerns over the use of satellite-mapped data on Nigeria’s natural resources to aid illegal activities, especially illegal mining, which he identified as one of the drivers of insecurity.
DalaHill Law Practice and the Bank of Agriculture (BoA) have signed a Mutual Accountability Framework (MAF), marking a milestone in the launch of a climate finance initiative funded by the African Climate Foundation (ACF) and valued at US$100,000.
According to a statement by the firm, the signing took place during a kickoff ceremony at the BoA headquarters in Abuja and formalised the roles, responsibilities and shared commitments of both institutions in delivering the project. The framework was signed by Ayo Sotinrin, BoA Managing Director, and Mohammed Hamza, Managing Associate at DalaHill.
The ACF-funded initiative is designed to support BoA’s institutional transition towards climate-aligned agricultural finance. Central to the programme is the establishment of a Clean Energy Delivery and Innovation Unit (CEDIU), a dedicated function that will integrate climate risk considerations, environmental data and sustainability principles into the bank’s strategy, operations and investment decision-making.
Under the initiative, BoA will also be supported to develop Clean Energy Access Systems and Climate Finance Development Frameworks, alongside a pipeline of bankable, climate-aligned agricultural projects.
These projects are expected to attract domestic and international capital into the sector, contributing to efforts to bridge Nigeria’s estimated $247.3 billion financing gap for its green energy transition.
Speaking on behalf of DalaHill, Mohammed Hamza described the initiative as a pivotal intervention in Nigeria’s agricultural and climate finance landscape. He said the firm is acting as a trusted adviser, working with institutions to deliver catalytic and transformative solutions.
According to him, DalaHill is deploying a multidisciplinary technical team to support BoA’s transition into a climate-aligned institution capable of attracting finance for scalable, investment-ready agricultural projects.
He highlighted the strategic importance of the project, noting that while ACF has traditionally focused on renewable energy, climate alignment within the agricultural sector is critical to driving Nigeria’s broader energy transition. He added that the initiative represents ACF’s first climate finance grant promoting agriculture in Nigeria.
In his remarks, Sotinrin expressed appreciation to the project partners and acknowledged longstanding gaps within Nigeria’s agricultural finance ecosystem. He reaffirmed BoA’s commitment to driving systemic change by attracting climate-aligned expertise, strategic funding and increased national and international attention to the sector.
Sotinrin also noted that the initiative aligns with the Federal Government’s climate and sustainability agenda, referencing Nigeria’s participation at an ongoing global climate sustainability conference in Abu Dhabi.
He further highlighted strong government backing for BoA’s transformation, including presidential approval in October 2024 of a US$1 billion recapitalisation plan aimed at strengthening the bank’s capacity to support national development.
DalaHill Law Practice is a full-service commercial law firm headquartered in Abuja, with a strong track record in advising on economically catalytic projects across sectors including energy, infrastructure, finance, trade and emerging markets.
The firm is known for structuring complex transactions, managing regulatory risk and supporting projects that promote sustainable growth and long-term economic impact in Nigeria and beyond.
Kaspersky’s new global research reveals that 65% of online shoppers believe they can detect fraud on their own, while only 42% actually use security software to protect their payments and block malicious links.
Experts consider this a major risk for online buyers. Over the past year Kaspersky identified nearly 6.7 million phishing attacks globally impersonating online stores, payment systems, and banks, with 55.6% targeting online shoppers.
As the post-holiday and summer sales season kicks off, Kaspersky conducted a survey to examine consumer cybersecurity practices employed during online shopping. The findings show that 97% of respondents demonstrate a substantial level of awareness of online security risks and implement at least some measures to safeguard their digital transactions.
However, the survey found that fewer than half the participants use dedicated security software to block phishing attempts and protect payment transactions. This concerning trend is particularly pronounced among the 55+ year old generation, with only 32% of respondents in this age group actually using security software when making online purchases.
The most commonly adopted security protocols include being vigilant about potential warning signs, such as suspicious hyperlinks or unusual website design (65%) and verifying seller authenticity (62%).
Kaspersky experts emphasise that while these practices are essential protective measures for online shopping, they constitute only foundational protection strategies rather than the comprehensive fraud prevention provided by a security solution.
Other steps that could protect online shoppers, like using a separate credit card for digital purchases or using a separate email address to register with unfamiliar online shops, were chosen by 33% and 26% of survey participants, respectively.
Meanwhile, 30% claimed to consult with friends and relatives before making a purchase. Interestingly, this option is highly popular among the younger generation, with 37% opting for it, while it is less common among older people (21%).
“Throughout the year, we’ve observed that online shoppers have consistently been one of the most desirable targets for scammers. During sales periods, their scams can become even more pervasive. Staying vigilant is crucial, but protecting yourself requires more than just awareness.
It is particularly concerning how scammers are now using AI to craft more sophisticated, targeted phishing attempts that are increasingly difficult for regular users to recognise,” comments Olga Altukhova, Senior Web Content Analyst at Kaspersky.
Sales seasons are peak times for scammers. To protect yourself against emerging threats, implement the following security practices:
– Don’t save your full credit card details on websites unless absolutely necessary.
– Consider using a separate debit card specifically for online purchases and set up transaction alerts on your bank and credit card accounts.
– Be extra cautious of “flash sales” that seem too good to be true. Watch out for websites that pressure you into making quick decisions, and be wary of sellers who refuse returns or exchanges.
– Use different passwords for each online account and enable two-factor authentication wherever possible.
– Apply a security solution with a strong anti-phishing component. For instance, Kaspersky Premium received the annual ‘Approved’ certification from the leading testing lab AV-Comparatives in 2025 for detecting 93% of phishing URLs, demonstrating outstanding anti-phishing capabilities, powered by AI technology.
– Scammers constantly evolve their methods, so staying informed about new phishing techniques can help you recognise and avoid them. The Kaspersky Security blog will help you keep your finger on the pulse of emerging cyberthreats.
The study was conducted by Kaspersky’s market research center in November 2025. A total of 3000 respondents from 15 countries (Argentina, Chile, China, Germany, India, Indonesia, Italy, Malaysia, Mexico, Saudi Arabia, South Africa, Spain, Turkey, the United Kingdom, and the United Arab Emirates) took part in the survey.
SEC Hikes Minimum Capital Requirements for Market Operators After a Decade
Study Shows Blocks in Telegram are Pushing the Underground Out
Galaxy Backbone Marks Two Decades of Powering Nigeria’s Digital Evolution
NGX Unveils Net-Zero Plan for Greener Capital Market
Galaxy Backbone Marks 20 Years, Tops FG Website Scorecard
Banks quietly move to enforce new ₦50 transfer levy from Jan. 1
FIRS says NIN, CAC Numbers to Serve as Tax IDs from 2026
Nigeria Police Arrest Okitipi, Nigerian Allegedly Linked to Microsoft 365 Hack
FIRS Declares NIN, CAC Numbers as Tax IDs from 2026
US Begins Partial Visa Ban on Nigerians January 1
E-Financial2 days agoAngst as FG Demands 7.5 Percent VAT on Mobile Bank Transfers, USSD
News2 days agoMoniepoint Launches Second Cohort of DreamDevs Initiative to Double Down on Africa’s Tech Talent Pipeline
E-Financial2 days agoNGX lists 3.156bn UBA shares, boosting capital to N513Bn
E-Financial2 days agoThe Missing Pieces in Nigeria’s Banking Recapitalisation
Telecom2 days agoGlo Unveils Immersive Gaming Experience, Travel Saga
E-Business2 days agoHalf of Global Companies Build SOCs to Enhance Cybersecurity, with a Focus on Human Expertise
General News2 days agoNITDA DG Reaffirms Nigeria–U.S. Partnership on Data Privacy, AI and Cybersecurity
General News2 days agoParadigm Initiative Condemns the Internet Shutdown and Media Restrictions in Uganda Ahead of the 2026 General Election