The Nigerian Economic Summit Group (NESG) has revealed that Nigeria lost an estimated N94 trillion due to multinational divestments and business closures between 2023 and 2024.
Dr. Segun Omisakin, NESG’s Chief Economist and Director of Research, made this disclosure in Lagos on Thursday during the launch of the 2025 Private Sector Outlook: Adapting to Economic Uncertainties for Growth and Resilience.
According to Omisakin, 30% of Nigeria’s 24 million registered MSMEs shut down during this period, reflecting the country’s deep economic vulnerability.
Key Economic Insights from NESG
Despite improved foreign exchange availability due to policy reforms, Omisakin noted that the naira depreciated significantly, with the official exchange rate averaging ₦1,479.9 per USD in 2024.
While trade surpluses and increased foreign capital inflows were recorded, Nigeria still faced severe fiscal constraints, with public debt soaring to ₦142.3 trillion as of September 2024.
He identified key challenges facing Nigeria’s private sector, including:
- Foreign exchange shortages
- Insecurity
- Inadequate infrastructure
- Limited market access
Call for Economic Adaptation and Policy Stability
Ayanyinka Ayanlowo, NESG’s Acting Head of Strategic Communication and Advocacy, quoted Omisakin as stressing the need for businesses to adapt to economic uncertainties through strategic growth and resilience measures.
NESG outlined a framework of economic stabilization, consolidation, and acceleration, emphasizing the importance of policy reforms that enhance private sector competitiveness.
NESG Board Director, Mrs. Wonu Adetayo, highlighted the crucial role of the private sector in shaping a resilient economy. Despite macroeconomic volatility, she noted that Nigeria’s economy expanded by 3.4% in 2024, marking the highest growth since 2021.
She pointed to key reforms, such as:
- Fuel subsidy removal
- Exchange rate harmonization
These measures contributed to economic stabilization, but stagnant productivity and rising macroeconomic imbalances continued to affect living standards.
Concerns Over Policy Instability and Business Environment
Discussions at the event focused on Nigeria’s ongoing economic reforms, with panelists highlighting key concerns, including:
- Lack of immediate monetary interventions after the fuel subsidy removal, which worsened inflation
- Inconsistent Customs regulations and fluctuating exchange rates, discouraging investment
- Foreign direct investors prioritizing policy stability over exchange rates, citing discussions in Qatar, where unpredictable market conditions deterred commitments
Call for Private Sector Inclusion in Policymaking
Panelists stressed the importance of involving the private sector in economic decision-making. They called for stronger collaboration between the public and private sectors, urging business associations like:
- Nigerian Association of Small and Medium Enterprises (NASME)
- Nigerian Association of Small-Scale Industrialists (NASSI)
- Nigeria Employers’ Consultative Association (NECA)
They also warned against excessive government interference in private sector affairs.
“Government must act as a facilitator, not a competitor, in economic affairs. Business organizations should always be involved in key negotiations to ensure broad-based economic benefits.”
— Dele Kelvin Oye, Esq., President of NACCIMA & Chairman, OPSN
Policy Predictability and Business Confidence
Panelists criticized unpredictable government policies, citing how tariff policies in the U.S. impact financial markets almost immediately. They argued that policy inconsistency deters investments and disrupts market confidence.
Additionally, they pointed out challenges posed by regulatory bottlenecks and law enforcement inefficiencies, which weaken business competitiveness.
To foster a conducive business environment, they called for:
- Legal reforms
- Clearer regulatory frameworks
- Greater protection for businesses and investors
The discussions underscored the urgent need for Nigeria to enhance policy stability, support private sector resilience, and create an investment-friendly environment.
