National Association of Small and Medium Enterprises (NASME) has decried the impact of rising operational costs and high interest rates on micro, small, and medium enterprises (MSMEs), describing the situation as toxic to business performance.
Speaking to journalists in the New year, Oyo State chairman of NASMEs, John Karunwi, attributed the sector’s struggles in 2024 to low purchasing power and the escalating cost of doing business. He called for swift government intervention to alleviate these pressures.
“High monetary policy rates, coupled with skyrocketing costs of raw materials, energy, and logistics, are crippling MSME performance,” Karunwi said. He also criticised regulatory bodies for imposing additional burdens that inflate the cost of doing business.
Karunwi acknowledged efforts by the government, including the Bank of Industry’s (BoI) single-digit loan initiatives, but lamented that these interventions have not reached most small businesses. “The overall performance of the MSME sector did not improve significantly in 2024,” he added.
He urged the government to implement policies that reduce operational costs, improve access to affordable energy and raw materials, and revive struggling MSMEs. We need immediate relief to make our businesses competitive and sustainable, he stressed.
In 2024, the federal government launched initiatives to support MSMEs, including a N75 billion loan scheme through the BoI. This program promised single-digit interest rates for up to 100,000 startups and MSMEs. However, NASME highlighted that the implementation and impact of these efforts have been limited.
Karunwi expressed optimism for 2025, urging the government to prioritise impactful policies that create a conducive business environment, revive dormant enterprises, and support economic growth. We look forward to better policies that directly address the challenges MSMEs face, he said.
With the MSME sector forming the backbone of Nigeria’s economy, stakeholders emphasised the urgent need for government action to ensure its survival and growth.
