Economy
MSMEs Need N13trn to Survive Current Nigerian Economic Crisis—PwC
By Adedapo Adesanya
Micro, small, and medium-scale enterprises (MSMEs) in Nigeria require an estimated N13 trillion ($32.2 billion) in financing to survive the current challenging operational environment, a new study by PwC Nigeria shared with Business Post has revealed.
PwC Nigeria, in its 2024 MSMEs Survey, provided insights into the trends, challenges, and strategies essential for small businesses in Nigeria to build resilience to succeed in a dynamic landscape.
In a statement that accompanied the PwC MSME Survey 2024 titled Building Resilience: Strategies for MSME Success in a Changing Landscape, an in-depth analysis of their operations, macroeconomic conditions, financing, digitalisation, and regulatory and fiscal environment based on 567 MSMEs across 13 sectors and 29 states were looked into.
It was revealed that the MSMEs’ growth potential in Nigeria was stunted by funding gaps, power outages, and over-taxation. Others include inadequate skilled labour, insecurity, and government policies.
In terms of funding, 35 per cent of the businesses surveyed cited inadequate access to finance as their number one challenge, with PwC noting that micro and small enterprises, particularly in agriculture and retail, need loans under $20,000.
“However, limited private sector lending, poor infrastructure, and lack of documentation hinder access to credit. While digital finance is emerging, innovation is crucial to bridge the gap and serve MSMEs effectively,” the statement noted.
The survey also found that infrastructure challenges, particularly electricity, account for the biggest costs to the daily operations of MSMEs with unreliable power supply a major challenge for 21 per cent of businesses.
“Nigeria’s power sector faces numerous issues, including deteriorating plant capacities, poor maintenance, inadequate gas supply, limited distribution networks, and the commercial viability of DisCos operations,” PwC noted.
Other structural challenges include multiple taxation (12 per cent), inadequate skilled labour (11 per cent), and insecurity (10 per cent).
These challenges have harmed the business environment, contributing to significant economic costs for MSMEs and the broader economy.
Speaking on this, Mr Sam Abu, Country Senior Partner, PwC Nigeria, “MSMEs continue to contribute significantly to the global economy, creating jobs, generating income, and fostering skills development. These contributions make the sector pivotal to Nigeria’s growth, especially now given our country’s current challenges.
“However, the sector’s full potential remains untapped due to persistent challenges that hinder its ability to lift people out of poverty and drive the economy forward. Despite these challenges, Nigerian MSMEs have demonstrated remarkable adaptability in navigating a complex business environment characterised by challenging macroeconomy and government policies, highlighting their potential to drive economic growth.”
On her part, Mrs Abisola Atitebi, Partner, and Head, MSME Help Desk, PwC Nigeria, added that, “MSMEs are a key driver of Nigeria’s economy, and their success is crucial for overall economic growth.
“The PwC MSME Survey 2024 highlights the sector’s resilience despite facing significant challenges such as macroeconomic headwinds, limited financing, and the urgent need for digital transformation.”
By Modupe Gbadeyanka
The Economic and Financial Crimes Commission (EFCC) has been given the power to arrest and detain six promoters of the troubled investment scheme operator, Crypto Bridge Exchange (CBEX).
The EFCC, through its counsel, Ms Fadila Yusuf, filed an ex-parte motion to keep the suspects in its custody pending the conclusion of investigation of the alleged offences and possible prosecution.
The suit was filed at the Federal High Court in Abuja and on Thursday, Justice Emeka Nwite, allowed the anti-money laundering organisation to further detain the sextet of Adefowora Abiodun Olanipekun, Adefowora Oluwanisola, Emmanuel Uko, Seyi Oloyede, Avwerosuo Otorudo and Chukwuebuka Ehirim as 1st to 6th defendants, respectively.
The commission asked the court to grant it “an order remanding the defendants in the custody of the complainant/applicant pending the conclusion of investigation of the alleged offences and possible prosecution.”
“The defendants are at large and a warrant of arrest is required to arrest the defendants for proper investigation and prosecution of this case,” she added.
In his ruling, Justice Nwite said, “I have listened to the submission of the learner counsel for the applicant, EFCC. I have also gone through the affidavit evidence with exhibits thereto along with the written address.
“I am of the view and I hold that the application is meritorious. Consequently, the application is granted as prayed.”
By Adedapo Adesanya
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has announced that a forensic audit of the Nigerian National Petroleum Company (NNPC) Limited would soon commence, but did not give a specific timeline.
He made this disclosure while speaking at the Nigerian Investor Forum, which is holding on the sidelines of the IMF/World Bank spring meetings in Washington D.C, the US, also attended by the Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso.
He explained that the recent rejigging of the management of the NNPC was part of the cleansing the federal government has taken to audit the company
Addressing a group of investors drawn from renowned global financial institutions, including J.P. Morgan, the Minister outlined critical reforms the federal government has implemented to reset the economy and restore confidence.
Mr Edun told the foreign investors that the government, through its veracious reforms, have laid the foundation that would make the country the desired destination for private investors as he said the country is on the road to 7 per cent annual growth, calling for investments in infrastructure, manufacturing, and agriculture.
The Minister said the administration of President Bola Tinubu has implemented foundational reforms that are now yielding results, with the Nigerian economy expanding 3.84 per cent in Q4 2024 and 3.4 per cent overall for the year.
“Our goal is not just to maintain this momentum, but to accelerate it. We are targeting seven per cent annual growth, and we believe the policies we have implemented have laid the groundwork to achieve this,” he stated.
The finance minister further emphasized the significance of the reforms, noting they are “unprecedented” and have drawn praise from multilateral partners during ongoing discussions in Washington.
“We said we would do it, and now we have done it. This time, we’re staying the course,” Mr Edun added.
He noted that with macroeconomic stability gradually returning as reflected in narrowing budget deficits, improved trade balance, and a stabilizing exchange rate, adding that the government is now shifting its focus to targeted sectoral growth.
“We aim to close the food supply gap, not by importing more, but by enabling domestic producers to scale and innovate,” he said.
On infrastructure, the minister revealed the rollout of 90,000km of fiber optic cable to enhance digital connectivity, a move seen as critical to empowering Nigeria’s youth and tech entrepreneurs.
In addition, 4,000km of roads have been tendered for private sector participation, with the first 1,000km already signed off for delivery.
By Adedapo Adesanya
The Nigerian Shippers Council (NSC) has reiterated its commitment to prioritising shipping activities and promoting importers and exporters in the country.
The Executive Secretary of the Council, Mr Pius Akutah, in a statement on Wednesday, said this after a familiarisation visit to the North East Zonal Directorate in Bauchi State.
The visit marked a strategic step in assessing the activities of the council in the region and reinforcing its role in trade facilitation and port economic regulation.
“The purpose of the visit was to promote regional integration in shipping activities and support exportation.
“This aligns with the current administration’s goal of enhancing the nation’s resources through the blue economy.
“We have had interactive meeting with stakeholders aimed at advancing shipping activities in the region and the role of shippers’ association in representing the interests of importers and exporters.
“The NSC is committed to improving ease of doing business,” he said.
On the Inland Dry Ports project in Bauchi, an initiative by the state government, Mr Akutah said it was laudable as it would attract both import and export activities to the area.
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