The Nigeria Association of Small and Medium Enterprises (NASME) has called on federal and state governments to intensify efforts in cushioning the rising impact of inflation on small businesses. The appeal comes as Nigeria’s SMEs struggle with surging production costs and declining consumer demand, threatening their ability to stay afloat.
Speaking after the association’s general meeting in Warri, Delta State, NASME Delta Chairperson Lady Judith Nwachukwu acknowledged the government’s recent reforms but stressed the urgent need for targeted, transparent, and accessible support tailored to grassroots entrepreneurs.
“SMEs are the backbone of our economy, but many of our members are now facing a multi-dimensional crisis,” Nwachukwu said. “From rising raw material prices to inflation-weary consumers, it’s becoming harder for small businesses to survive, let alone grow.”
She commended the Tinubu administration for recognizing the role of SMEs in national recovery, noting efforts such as increased tax exemptions, local content promotion under the ‘Nigeria First’ policy, and attempts to ease access to finance. However, she emphasized that these interventions must go beyond policy documents and reflect the everyday realities of small business owners.
According to Nwachukwu, many SMEs remain excluded from funding opportunities due to overly rigid and corporate-focused lending criteria. “Access to intervention funds must be made easier. Current requirements often mirror commercial bank conditions, which simply don’t work for most grassroots businesses,” she noted.
She further explained that recent economic reforms, including the removal of fuel subsidies, exchange rate unification, and insecurity in Nigeria’s agricultural regions, have compounded the cost pressures on SMEs. These developments, she warned, are eroding the already limited capacity of small businesses to absorb shocks.
To reverse this trend, NASME is calling for closer collaboration between the government and private sector stakeholders to ensure Nigeria’s SME sector can actively contribute to the Renewed Hope Agenda. “Our members are ready to build, create jobs, and grow the economy. But they need real, practical support that reaches them where they are,” Nwachukwu said.
NASME praised the Delta State Government for approving a ₦1 billion revolving fund forMSMEs, to be administered by the Bank of Industry (BoI) at a single-digit interest rate. Nwachukwu said the initiative reflects a practical understanding of the financial constraints many small businesses face and urged that the disbursement process remain transparent and prompt to achieve maximum impact.
She also expressed appreciation to the BoI for recently approving loan applications from NASME Delta members and encouraged the bank to ensure smooth and timely disbursement of funds.
A major highlight of the Warri meeting was the unveiling of the NASME Delta Multipurpose Cooperative Society, aimed at strengthening the financial resilience of its members. The cooperative will be led by the association’s Public Relations Officer, Sir Hilary Ikem.
As economic pressures continue to mount, NASME’s message remains firm: Nigeria’s path to recovery runs through its small businesses. But keeping them alive requires more than reforms—it demands inclusion, accessible capital, and policies that are built from the ground up.
