General News
Oye, AERE Raises Alarm as 8m MSMEs Collapse in 18 Months
Dele Oye, chairman, Alliance for Economic Research and Ethics (AERE), has raised the alarm that an estimated eight million micro, small and medium enterprises (MSMEs) shut down across Nigeria between January 2023 and June 2024, representing about 20 per cent of the country’s estimated 40 million SMEs.
Dele Oye, chairman, Alliance for Economic Research and Ethics
He also warned that the scale of the collapse exposes a deepening crisis in the sector, describing it as an existential threat to Nigeria’s economic foundation.
He disclosed the figures in a policy brief titled “The Gap: Nigeria’s Industrial Policy 2025 vs. The Lived Reality of SMEs.”
According to Oye, research consistently shows that as many as 95 per cent of Nigerian SMEs fail within their first five years of operation, highlighting the urgent need for policies that go beyond design to effective implementation.
Quoting Femi Egbesola, national president of the Association of Small Business Owners of Nigeria (ASBON), Oye described the situation as a humanitarian crisis.
“Many businesses simply cannot cope with the harsh economic environment. Owners are closing their shops, unable to meet loan obligations or manage skyrocketing operational costs. Several people have died under the pressure; others are in the hospital. It’s a humanitarian crisis,” Egbesola said.
Oye identified three major factors driving SME failures: macroeconomic instability, limited access to affordable finance and soaring energy costs.
He, however, commended the Federal Government’s newly introduced Nigeria Industrial Policy 2025 (NIP2025), describing it as an ambitious framework designed to reposition the country’s manufacturing sector.
On the policy championed by the Federal Ministry of Industry Trade and Investment, Senator John Owan Enoh, minister of State for Industry, explained that it seeks to raise manufacturing’s contribution to Nigeria’s Gross Domestic Product (GDP) to 15 per cent by 2030 and 25 per cent by 2035, while boosting exports, creating jobs and positioning Nigeria as Africa’s leading industrial hub.
Oye noted that the policy rightly recognises MSMEs as central to achieving those objectives, pointing out that the sector contributes 46.32 per cent of Nigeria’s GDP and accounts for about 87.9 per cent of total employment.
He said the policy promises single-digit loans, industrial clusters, technology incubation centres, skills development programmes and fiscal incentives aimed at supporting businesses.
Despite these commitments, Oye argued that there remains a wide gap between policy intentions and the realities confronting entrepreneurs.
“For millions of Nigerian entrepreneurs struggling to survive, the NIP2025 reads less like a practical roadmap and more like a distant promise,” he said.
According to him, inflation, which climbed to 33.4 per cent in July 2024, persistent naira depreciation and the removal of fuel subsidies have sharply increased production and transportation costs, forcing many SMEs to downsize their workforce by as much as 70 per cent.
He also lamented the limited access to affordable financing, noting that only between 15 and 20 per cent of SMEs have access to formal bank credit. Where loans are available, he said, lending rates now exceed 35 per cent, making borrowing unsustainable for most small businesses.
Energy shortages remain another major burden, with businesses enduring prolonged power outages and relying heavily on generators.
Oye noted that diesel costs alone consume as much as 30 per cent of revenue for many SMEs.
He argued that previous industrial policies failed largely because of weak implementation rather than the absence of good ideas.
According to him, although government interventions have increased credit availability over the years, most SMEs use borrowed funds to cover operational expenses such as rent, inventory and energy costs instead of expanding production because of the difficult business environment.
To reverse the trend, Oye called on the Federal Government to declare an SME emergency and introduce targeted measures, including genuine single-digit interest loans, energy support for productive sectors and a moratorium on multiple taxation by state and local governments.
He also recommended loan products that align with SME cash flow cycles through longer repayment periods, revenue-based financing and appropriate grace periods.
In addition, he urged the government to prioritise the development of SME industrial clusters by providing reliable electricity, water, roads and security in selected locations within one year.
Oye further called for greater transparency through the National Industrial Development Monitoring System (NIDMS), recommending quarterly publication of detailed data on SME financing, beneficiaries, sectors and employment outcomes.
While describing Senator Enoh’s advocacy for NIP2025 as commendable, Oye stressed that Nigeria’s entrepreneurs need effective implementation rather than another policy document.
He said the policy would only succeed if it delivers tangible benefits to business owners, including bakery operators struggling with rising costs, transport operators forced to cut jobs because of higher diesel prices and artisans fighting to keep their businesses afloat.
“The ambition is right, the execution must now match it.”
Police in Abuja have uncovered a criminal group making fake diplomatic and government number plates.
Ahmed Sanusi, commissioner of Police FCT, stated this during a press briefing on Friday.
He explained that criminals use these fake plates to dodge security checks and enter restricted areas.
The investigation started soon after Sanusi took office.
He noticed too many unauthorized cars driving around with official government and diplomatic tags.
“I immediately ordered a comprehensive investigation into this disturbing trend,” Sanusi said. He noted that these individuals use the plates as a cover to commit crimes and avoid arrest.
The police have already arrested several people caught using the fake plates.
They have also figured out who is making them.
The manufacturers operate outside Abuja, and police are actively hunting them down.
Sanusi kept their names secret so they would not flee.
He stressed that this is a highly profitable illegal business.
Buyers pay between N500,000 and N1.7 million for a single fake plate.
“This will tell you that they are making such huge expenditure because they have an agenda,” Sanusi explained.
“Now they will face punishment that is bigger than both the cost they incur and the agenda they are planning.”
The commissioner urged residents to report any cars with suspicious diplomatic plates.
He reminded the public that real diplomatic tags follow a very specific format.
A diplomatic number plate in Nigeria is a special vehicle identification tag issued to foreign embassies, high commissions, and accredited international diplomats.
Gavi has approved $500 million to strengthen Nigeria’s immunisation programme, primary healthcare services and long-term vaccine financing.
The move followed high-level discussions between Professor Muhammad Ali Pate, coordinating minister of Health and Social Welfare, ]and Dr. Sania Nishtar, chief executive officer, Gavi in Abuja.
The funding, approved under the Gavi 6.0 programme, will support Nigeria’s efforts to accelerate routine immunisation, sustain polio eradication, expand HPV vaccination, strengthen primary healthcare services, and improve long-term vaccine financing.
Speaking during the meeting, Pate said Nigeria was strengthening its partnership with Gavi to accelerate immunisation, expand primary healthcare services, and ensure sustainable financing for vaccines.
He welcomed Gavi’s country-focused reforms, including the introduction of a predictable five-year funding envelope.
Pate said the US$500 million allocation will enable Nigeria to plan more effectively and deliver life-saving vaccines to more children and vulnerable populations.
The minister also revealed that quarterly visits to primary healthcare centreshad increased from about 10 million in 2023 to more than 45 million, reflecting significant progress in revitalising the country’s primary healthcare system.
Pate welcomed the announcement of a US$600 million pledge by the United States government to Gavi, describing it as a strong endorsement of the alliance’s leadership and the global value of vaccines.
He also commended Nishtar for prioritising Nigeria and praised the closer coordination among Gavi, World Health Organisation (WHO), UNICEF, World Bank, Gates Foundation, and other development partners, describing it as a model that has improved efficiency and aligned support with Nigeria’s health sector reforms.
The minister expressed appreciation to Gavi and its partners for their continued technical and financial support, while calling on state governments to invest more in healthcare and immunisation to complement federal efforts.
For many women, financial independence means the freedom to provide for their families and build a better future. Yet, this remains out of reach due to limited access to opportunities, business support, and secure payment solutions.
Like millions of women in Nigeria determined to be financially independent, Pricillia started with a single PalmPay POS terminal, and as an agent, every successful transaction provided a commission which brought her one step closer to achieving her dream.
Through consistency, discipline, and support from the payment platform, she reinvested her earnings and eventually opened her own provision store.
“I started as just a PalmPay agent with one POS. The consistency of the platform gave me the confidence to expand. With the income I earned, I was able to open my own provision shop.” Priscilla said.
For Priscilla, PalmPay was more than a payment platform. Its secure payment infrastructure gave her the confidence to serve her customers, build trust, and grow her income.
Today, Pricillia has joined the statistics of SMEs powering Nigeria’s economy and PalmPay continues to support her daily operations, helping her receive payments, as she works towards her next business milestone. Her journey is a reminder that when women have access to secure financial tools and opportunities, they can build lasting economic independence.
Speaking on Pricillia’s journey, Femi Hanson, Head of Marketing, PalmPay said: “Providing a secure platform that users can trust, whether for everyday payments or high-value transactions, is central to our vision of advancing financial inclusion. Priscilla’s story reflects our commitment to supporting the ambitions of Nigerians by providing a platform they can rely on to grow their finances. After all, seamless banking begins with security, and every successful transaction reinforces the trust our users place in us.”
Priscilla stands among thousands of PalmPay agents nationwide who are helping to expand financial access across Nigeria while earning commissions to create sustainable sources of income for themselves.
Every payment tells a story. It begins with trust, the confidence that your money is secure and that financial services are accessible. And when that opportunity reaches women, it creates ripple effects that transform families, strengthen communities, and drive economic growth.
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