MSMEs navigate tough economy, demand state of emergency to tackle issues

Micro, small, and medium enterprises (MSMEs) in Nigeria are facing a tough economic environment marked by rising costs, limited access to credit, multiple taxation, and inadequate infrastructure. These challenges have led many businesses to shut down, downsize, or significantly scale back operations. Entrepreneurs are adopting creative strategies to stay afloat, such as leveraging technology, exploring local alternatives to imported materials, and forming cooperative partnerships. However, they are urging the government to declare a state of emergency to address these systemic issues and foster a more enabling business environment.

Leaders in the MSME sector, such as Femi Egbesola, Chairperson of ASBON, highlight that businesses are reducing operational costs by investing in alternative energy sources like solar power, streamlining processes through technology, and offering cost-efficient products. Many are also turning to cooperative societies and foreign investors for funding due to prohibitive commercial bank interest rates. While these strategies are helping businesses survive, they often come at the cost of reduced production quality and capacity, contributing to job losses and a weakened economy.

Experts emphasize the need for government action to address the sector’s challenges, including easing regulatory burdens, improving infrastructure, and tackling insecurity. Policies must be reformed to better align with the realities of the MSME ecosystem. Collaboration with stakeholders, particularly at the local government level, is crucial to ensure targeted and effective interventions. MSMEs, as the largest employers of labor in the country, are vital to reducing poverty and driving economic growth, making their revitalization a national priority.