SMEs Facing Closure Due to Harsh Business Environment, Warns NASSI

By Milcah Tanimu

The Nigerian Association of Small Scale Industrialists (NASSI) has raised an alarm, stating that Micro, Small, and Medium Enterprises (MSMEs) are struggling to keep their operations afloat and are closing down on a daily basis due to the harsh operating conditions in the country.

Peter Popoola, the Vice Chairman of NASSI’s Lagos chapter, made this concerning revelation during an interview with The PUNCH at the 2023 ‘Made in Nigeria’ NASSI Trade Fair held in Lagos.

Popoola emphasized the significant potential of MSMEs to contribute significantly to the national economy but pointed out that they are currently grappling with a multitude of challenges that hinder their growth and sustainability.

He stated, “It is the small-scale enterprises that contribute the most to the economy, and in Nigeria, it is no different. When you look at all the MSMEs, there are more than 50 million in this country. When you talk about employment, we are also taking the lead. So, MSMEs are forces that you cannot undermine.”

Popoola further highlighted the unfavorable economic climate that MSMEs are currently facing, with rising prices of raw materials and soaring production costs. He cited the escalating cost of diesel for generators, making production unsustainable and leading many businesses to shut down.

“The economy is not friendly to us. Our members are feeling the hardship in a very serious way. In fact, our members are closing up every day because they cannot continue any longer. The prices of raw materials have skyrocketed. We can’t produce with the generator again. If we buy diesel at N1,050 to produce, we will run at a loss,” Popoola lamented.

Gertrude Akhimien, the Chairman of NASSI’s Lagos State chapter, explained that the objective of the trade fair was to showcase the quality of Made in Nigeria products. She emphasized the importance of public recognition and appreciation of these products to encourage their growth and attract potential buyers and distributors.

The plight of MSMEs and their struggle for survival amid challenging economic conditions highlights the need for policy interventions and support mechanisms to sustain and boost this critical sector of the Nigerian economy.