What do you believe is the single most important factor driving up the cost of living in Nigeria?

In July, Moniepoint’s ‘2024 Informal Report’ revealed that more businesses accessed credit from family and friends than traditional banks and loan platforms.

Moniepoint stated that 70.7 per cent of surveyed MSMEs said they accessed credit from family and friends, 15.1 per cent got theirs from loan apps and platforms, and 12.2 per cent noted they got credit from traditional banks. In comparison, two per cent used the services of cooperatives to get credit.

In August, the PwC MSME Survey 2024, which interviewed 567 small businesses, stated that MSMEs in the country required an estimated $32.2bn (N13tn) in financing and found that 67 per cent of MSMEs “experienced declining demand over the past two years”.

Whereas 38 per cent of the interviewed MSMEs said the reason for their drop in sales was the high cost of their products, 36 per cent attributed it to the low purchasing power of consumers, and 12 per cent observed that consumers switching to alternative products reduced their patronage, 10 per cent of the respondents pointed at changing consumer preferences.

The Small and Medium Enterprises Development Agency of Nigeria has reckoned with reports of small businesses going downhill.

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