• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Wednesday, July 16, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Forex Crisis Killing Small Businesses, Operators Cry Out

by Kingsley Okoh
2 years ago
in Business
Businesse
Share on WhatsAppShare on FacebookShare on XTelegram

The national Association of small business owners in Nigeria (ASBON) has expressed concerns over the grappling volatility of Fx market and the attendant effects on Small and Medium Enterprises (SMEs), micro and nano businesses, a concern equally raised by Nigerian Association of Small-Scale Industrialists and indigenous entrepreneurs.

Advertisement

ASBON Boss, Dr. Femi Egbesola while speaking with LEADERSHIP attributed the collapse of the SMEs to a harsh business environment from high cost of operations, inflationary pressures, overhead cost, over-taxation, lack of access to funding, FX Market fluctuations among others.

Egbesola lamented that despite MSMEs immense contribution to the nation’s economy, there had been a lack of willingness on the part of the government to address these bottlenecks that continued to send small businesses out of business.

He said,: “The reason is obvious. The high cost of operations, lack of funding, poor infrastructure, multiple taxes while affirming the need for Lagos State Internal Revenue (LIRS) to build conversation around multiple taxes and how it is affecting the SMEs.’

ASBON’s MSMEs survey disclosed that at least two million SMEs in the country crashed between 2017 to 2021, adding that, the number of MSMEs dropped further from 39 million to 31.2 million SMEs.”

RELATED

4th Digital Xperience Centre To Enhance Banking Services – First Bank

FirstBank Partners UNGC To Bridge SDG Financing Gap

15 hours ago
Stockbrokers To Launch First Book, Documentary On Nigerian Capital Market

Stockbrokers To Discuss Economic Growth Strategies

15 hours ago

Egbesola urged the government to move swiftly to address the harsh business environment faced by business as the palliatives would have little effect if the environment remains harsh.

He underscores that the current exchange rate crisis may force businesses to increase prices, potentially leading to economic challenges.

He added that: “96 per cent of those in businesses are in the nano and micro sector, and these are people who are informal and mostly illiterates. So, if the process is not done well, you may seclude this sector from benefitting from it.”

Egbesola urged the government to move swiftly to address the harsh business environment faced by business as the palliatives would have little effect if the environment remains harsh.

Commenting, Immediate past president of National Association of Small-scale Industrialist, Mr. Kuti George pointed out the impact of the unstable foreign exchange regime in Nigeria on small businesses and other issues and how it affects consumers resulting in business closures that ultimately impact the broader economy.

Kuti-George queries why the floating of the Naira has not effectively curbed speculative activities in the foreign exchange market.

He asserted that the rising cost of production, driven by a reliance on imported inputs like equipment and raw materials, is a significant factor contributing to this challenge. As input costs rise, so does the cost of production, potentially leading to higher product prices.

Kuti-George raised a critical question: Will consumers still be able to afford locally-produced goods? There’s a risk that imported products might become more attractive due to pricing disparities, potentially leading to a preference for imported goods over domestic ones.

Addressing the issue, he said the government needs to avert further factory closures, while urging the government to take swift action in stabilising the Naira’s value, particularly in the parallel market where many customers access foreign exchange.

In June 2023, the Central Bank of Nigeria (CBN) unified exchange rate windows to maintain Naira stability against foreign currencies, notably the United States Dollar.

Meanwhile, chief operating officer of Centre for the Promotion of Private Enterprises Dr. Muda Yusuf highlighted the high mortality rate among Nigerian MSMEs due to various challenges within the business environment.

These challenges,he said, range from structural issues like infrastructure deficits to currency exchange rate fluctuations, leading to liquidity crises in the foreign exchange market.

In seeking solutions, Yusuf proposed to address critical infrastructure concerns, with immediate attention to be directed towards electricity supply and logistics. He also advocates for resolving issues related to foreign exchange liquidity and currency depreciation. Additionally, he suggested tax exemptions for MSMEs with an annual turnover of N50 million and below, coupled with efforts to streamline and reduce the burden of multiple taxes and levies.

Furthermore, Yusuf stressed the importance of tackling regulatory and institutional hurdles that affect MSMEs, particularly in accessing credit, managing the cost of credit, and determining fund tenure. Addressing these concerns will be pivotal in fostering a thriving MSME sector and catalysing economic growth.

 


We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →

Join Our WhatsApp Channel



SendShareTweetShare
Previous Post

UNIBEN Arrests Admission Racketeers

Next Post

World Heart Day: Abbas Holds Free Treatment For 1,000 Constituents

Kingsley Okoh

Kingsley Okoh

You May Like

4th Digital Xperience Centre To Enhance Banking Services – First Bank
Business

FirstBank Partners UNGC To Bridge SDG Financing Gap

2025/07/15
Stockbrokers To Launch First Book, Documentary On Nigerian Capital Market
Business

Stockbrokers To Discuss Economic Growth Strategies

2025/07/15
Customs CG Approves Promotion Of 357 Junior Officers
Business

Infractions: Customs Ban Pharmaceutical Goods Clearance From Bonded Terminals

2025/07/15
Improved Licensing Process Attracts $1.2bn Investment To Modular Refineries
Business

Improved Licensing Process Attracts $1.2bn Investment To Modular Refineries

2025/07/15
Court Restrains Reps From Investigating Sterling Bank
Business

Sterling Bank Seeks To Boost Non-oil Export With Academy

2025/07/15
PTDF Boosts Oil & Gas Manpower, As 5,000 Screens For Overseas Scholarship
Business

Scholarships: PTDF Strengthens Oil & Gas Sector With Strategic Partnerships, Screens 5,723 Applicants

2025/07/15
Leadership Conference advertisement

LATEST

How AI Is Transforming PR Landscape In Nigeria, Across Global Markets — Expert

Man Discovers ‘Bomb’ On Farmland In Kaduna

World PR Day: Newmark, PRGN Move To Tackle Polarisation, Misinformation

London Mayor Sadiq Khan Makes First Visit To Nigeria

Lagos Police Arrest Suspect With Firearms, Launch Anti-cult Squads

EU, Turkiye, Others Mourn Buhari

JUST–IN: Ex-President Buhari Buried After State Funeral

Buhari Told Me He Felt Better Out Of Office — Gov Radda

FIBA U19 WWC: Junior D’Tigress Suffer Second Defeat, Avoid US In Round Of 16

40,678 Kogi Children Affected By Malaria In 2024

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.