President Bola Tinubu has said 2026 will mark the beginning of a more robust phase of economic growth in Nigeria, with early signs that recent fiscal, monetary and structural reforms are starting to ease long-standing pressures on businesses, particularly micro, small and medium enterprises.
In his New Year address, the President pointed to moderating inflation, improved foreign reserves, rising foreign investment and sustained GDP growth as indicators that the economy is stabilising after a difficult reform period. He said the administration’s policies in 2025 had laid the groundwork for a more resilient and inclusive economy, despite global economic headwinds.
For MSMEs, the outlook suggests a gradual reduction in operating costs as inflation continues to slow and exchange rate volatility declines. The President said inflation had fallen below 15 per cent by the end of 2025 and would be reduced further in 2026, a move expected to ease pressure on raw material prices, transport costs and consumer spending power, all of which directly affect small businesses.
Improved foreign reserves, which stood at $45.4 billion by late December 2025, were also highlighted as a key buffer against currency shocks. Greater exchange rate stability is expected to support MSMEs that rely on imported inputs while encouraging local production and value addition.
The President noted that foreign direct investment rebounded sharply in the third quarter of 2025, reflecting renewed investor confidence. While much of this capital typically flows into large projects, sustained inflows are expected to stimulate supply chains, subcontracting opportunities and service demand that involve small businesses across manufacturing, trade and services.
Tax reform featured prominently in the address, with the President acknowledging the burden of multiple taxation on businesses. He said harmonisation of tax laws across federal, state and local governments would continue in 2026 to reduce excessive levies and improve compliance. For MSMEs, this signals a potential easing of regulatory pressure and more predictable business costs, especially for informal and semi-formal enterprises.
As interest rates and inflation moderate, the President said the government expects more fiscal space to invest in infrastructure and human capital. Expanded investment in roads, power, ports and logistics is expected to lower production and distribution costs for MSMEs, while improved access to skills and education could strengthen productivity and competitiveness.
The address also underscored the Renewed Hope Ward Development Programme, which aims to bring millions of Nigerians into productive economic activity through agriculture, trade, food processing and mining. These sectors remain the backbone of MSME participation, particularly at the grassroots, where small enterprises drive employment and local economic growth.
Overall, the President said 2026 would be a year when the benefits of reform become more visible in everyday economic activity. For Nigeria’s MSMEs, this points to a cautiously improving environment, shaped by easing inflation, tax reforms, infrastructure investment and renewed focus on grassroots economic participation.
