The Association of Small Business Owners of Nigeria (ASBON) has disclosed a grim statistic, saying, a staggering 7.8 million small and medium-sized enterprises (SMEs) have met their demise within the span of just two years.
This alarming revelation comes from Femi Egbesola, the President of ASBON, who expressed his distress over the catastrophic loss.
Egbesola highlighted the severity of the situation, stating that a disheartening 20 percent of businesses have been forced to shut down between January 2021 and the present day.
This significant blow has cast a shadow over the nation’s economy and raises concerns about the livelihoods of countless individuals who depended on these enterprises for their income.
The impact of this massive wave of closures cannot be underestimated.
The collapse of nearly 8 million SMEs has far-reaching consequences, from job losses to disruptions in supply chains. It is a wakeup call for immediate and comprehensive reforms to address the challenges faced by these businesses.
Egbesola also stressed the importance of safeguarding the government’s announced palliatives, aimed at providing relief to struggling SMEs.
He cautioned against the potential diversion of these essential funds by corrupt individuals, emphasizing the need for transparent and accountable distribution mechanisms.
Dikko Radda, Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), confirmed the severity of the situation.
According to ASBON’s report, the number of SMEs has plummeted from 41 million to 31.2 million, painting a dire picture of the state of small businesses in the country.
Solomon Aderoju, National Vice President of the Nigerian Association of Small and Medium Enterprises, shed light on the reasons behind this devastating trend.
He pointed to a hostile business environment characterized by exorbitant operational costs, inflationary pressures, over-taxation, and limited access to funding.
He added that these challenges have created an untenable situation for many SMEs, leading to their closure.
As the dust settles on this distressing revelation, urgent action is required to salvage what remains of Nigeria’s SME landscape.
The government, business associations, and stakeholders must come together to formulate and implement strategies that provide a lifeline to struggling SMEs.
The fate of millions of livelihoods hangs in the balance, and the resilience of Nigeria’s entrepreneurial spirit is put to the ultimate test.
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