Oye warns of FX market vulnerability, high SMEs’ mortality
Chairman, Alliance for Economic Research and Ethics (AERE), Dele Oye, has raised the alarm that an estimated eight million micro, small and medium enterprises (MSMEs) shut down across Nigeria between January 2023 and June 2024, representing about 20 per cent of the country’s estimated 40 million SMEs.
He also warned that the scale of the collapse exposed a deepening crisis in the sector, describing it as an existential threat to Nigeria’s economic foundation.
He noted that the record $4.375 billion traded in Nigeria’s foreign exchange market within a single week has exposed structural weaknesses in the country’s currency market rather than signalling improved liquidity or stability.
He disclosed the figures in a policy brief titled “The Gap: Nigeria’s Industrial Policy 2025 vs. The Lived Reality of SMEs.”
According to Oye, research consistently shows that as many as 95 per cent of Nigerian SMEs fail within their first five years of operation, highlighting the urgent need for policies that go beyond design to effective implementation.
Quoting the National President of the Association of Small Business Owners of Nigeria (ASBON), Femi Egbesola, Oye described the situation as a humanitarian crisis.
“Many businesses simply cannot cope with the harsh economic environment. Owners are closing their shops, unable to meet loan obligations or manage skyrocketing operational costs. Several people have died under the pressure; others are in the hospital. It’s a humanitarian crisis,” Egbesola said.