Eight Million MSMEs Shut Down Amid Economic, FX Challenges, Dele Oye Warns

Eight Million MSMEs Shut Down Amid Economic, FX Challenges, Dele Oye Warns Chairman of the Alliance for Economic Research and Ethics, Dele Oye, has raised concerns over the state of Nigeria’s economy, warning that about eight million micro, small, and medium enterprises MSMEs have shut down amid worsening economic conditions. Oye attributed the high rate of business closures to persistent foreign exchange FX market instability, rising operating costs, inflation, and limited access to affordable financing. He said the situation has placed enormous pressure on entrepreneurs and weakened the capacity of small businesses to survive.

According to him, continued volatility in the foreign exchange market has increased the cost of importing raw materials and essential inputs, while exchange rate fluctuations have created uncertainty for businesses and investors. He urged policymakers to implement reforms aimed at stabilizing the FX market, improving access to credit, and creating a more predictable business environment to help revive struggling enterprises and restore investor confidence.

The warning comes amid ongoing concerns over Nigeria’s economic outlook, with many businesses grappling with inflationary pressures, currency depreciation, and declining consumer purchasing power.