…Eight million MSMEs shut down in 18 months as industrial policy faces reality check
Nigeria’s ambition to raise manufacturing’s contribution to Gross Domestic Product (GDP) to 15 percent by 2030 and 25% by 2035 could be undermined by weak implementation unless urgent steps are taken to address the challenges confronting micro, small and medium enterprises (MSMEs), according to a new report by the Alliance for Economic Research and Ethics (AERE) LTD/GTE.
The report, authored by Dele Kelvin Oye, Chairman of the Alliance, warned that while the Nigeria Industrial Policy 2025 (NIP2025) presents a comprehensive blueprint for industrialisation, persistent constraints such as limited access to affordable finance, high energy costs, inflation and policy execution gaps continue to threaten the survival of the country’s small businesses, which are expected to drive the policy’s success.
It further revealed that no fewer than eight million MSMEs shut down across Nigeria between January 2023 and June 2024, wiping out nearly 20% of the country’s estimated 40 million small businesses and casting fresh doubts over whether the Federal Government’s industrial policy can achieve its ambitious targets without urgent reforms in implementation and business support.
