Inflation: 67% of MSMEs report decline in demand for their products and services – Report

A new report by Price Waterhouse Coopers shows that 67% of Nigerian Micro, Small, and Medium Enterprises (MSMEs) have seen a drop in demand for their products over the past two years.

The main reasons include high product costs and low consumer purchasing power. Some businesses are also facing challenges because consumers are choosing other products or changing their preferences.

Access to financing remains a big problem for these businesses.

Many MSMEs struggle with high interest rates, complicated loan procedures, and lack of collateral. This is partly because many of these businesses are informal and considered risky by lenders.

The decline in demand is linked to Nigeria’s tough economic situation. Inflation is at its highest in 28 years, and the recent removal of fuel subsidies and the devaluation of the Naira have worsened the cost of living.

Additionally, high interest rates set by the Central Bank of Nigeria are making it even harder for businesses to get the money they need.