Multinational divestments and business closures in Nigeria led to an estimated N94 trillion economic loss between 2023 to 2024, the Nigerian Economic Summit Group (NESG)
Dr. Segun Omisakin, Chief Economist and Director of Research at NESG, stated this in Lagos on Thursday at the launch of 2025 Private Sector Outlook: Adapting to Economic Uncertainties for Growth and Resilience.
According to him , 30% of Nigeria’s 24 million registered MSMEs shut down during this period, underscoring the country’s economic vulnerability.
In his presentation, Omisakin provided an in-depth analysis of the private sector’s performance and economic risks in 2024.
He noted that while foreign exchange availability improved due to policy reforms, Nigeria’s currency depreciated significantly, with the official exchange rate averaging 1,479.9 Naira to the U.S. Dollar in 2024.
According to him,trade surpluses and increased foreign capital inflows were recorded, yet fiscal constraints persisted, with public debt rising to 142.3 trillion Naira as of September 2024.
He highlighted the struggles faced by Nigeria’s private sector, including foreign exchange shortages, insecurity, inadequate infrastructure, and limited market access.
Ayanyinka Ayanlowo, Acting Head, Strategic Communication and Advocacy,NESG in a statement,quoted Dr. Omisakin stressed the need for businesses to adapt to economic uncertainties and employ strategic measures for growth and resilience.
He outlined NESG’s framework of economic stabilisation, consolidation, and acceleration, emphasising the importance of monitoring reform efficacy and implementing policies that enhance private sector competitiveness.
NESG Board Director, Mrs. Wonu Adetayo, emphasised the vital role of the private sector in shaping a resilient economy.
She noted that despite structural weaknesses and macroeconomic volatility, Nigeria experienced an economic growth improvement in 2024, driven by reform efforts that enhanced investment levels.
She said stagnant productivity and persistent macroeconomic imbalances led to deteriorating living standards and heightened economic distress.
She added that Nigeria’s economy expanded by 3.4% in 2024, the highest growth since 2021, with the number of expanding activity sectors increasing from 32 in 2023 to 38 in 2024.
She highlighted key reforms, such as fuel subsidy removal and exchange rate harmonization, which contributed to economic stabilization.
According to the statement,discussions at the event focused on Nigeria’s ongoing economic reforms, with panelists acknowledging the impact of currency depreciation, policy instability, and global market trends.
A major concern highlighted was the lack of immediate monetary interventions following the removal of the fuel subsidy, which exacerbated inflationary pressures.
Besides, inconsistent Customs regulations and fluctuating exchange rates were also identified as deterrents to investment and operational stability for businesses.
Panelists noted that foreign direct investors prioritise policy stability over the exchange rate itself, emphasising that investors are willing to engage regardless of currency value, as long as policies remain consistent.
This was evident in discussions with potential investors in Qatar, where concerns about unpredictable market conditions hindered commitments.
On the need for private sector inclusion in policy formulation, the panelists called for stronger collaboration between the public and private sectors, stressing that business associations like the Nigerian Association of Small and Medium Enterprises (NASME), the Nigerian Association of Small-Scale Industrialists (NASSI), and the Nigeria Employers’ Consultative Association (NECA) must be actively involved in economic decision-making.
They warned against government over-reach into private sector affairs, urging policymakers to recognise business organisations as essential stakeholders in negotiations on trade and investment.
“Government must act as a facilitator, not a competitor, in economic affairs.
“Business organisations should always be in the room when key negotiations take place to ensure broad-based economic benefits,” Dele Kelvin Oye, Esq. President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA); Chairman, Organised Private Sector of Nigeria (OPSN) stated.
The discussions further emphasised the importance of policy consistency, citing the example of tariff policies in the United States and their immediate impact on financial markets.
It was argued that unpredictable policies deter investments and disrupt market confidence.
Panelists also highlighted the challenges posed by law enforcement inefficiencies and regulatory bottlenecks, which hinder business competitiveness.
They called for legal reforms and improved regulatory clarity to foster an environment conducive to investment and business expansion.