Micro, Small, and Medium Enterprises (MSMEs) remain the heartbeat of Nigeria’s economy. More than 39 million MSMEs operate across the country, contributing nearly half of Nigeria’s GDP while also employing tens of millions. These businesses serve as vital engines of innovation and community resilience. Yet, their stories often go untold, and their challenges overlooked.
Hence, MSMEs in Nigeria: Business finance, revenue, and support, among others, a comprehensive, data-driven study of the nation’s most critical business sector. Drawing insights from all six geopolitical zones to offer a granular look at the realities, opportunities, and obstacles shaping MSMEs today.
Among the most striking findings is the reliance on personal savings as the predominant source of business finance, with over half of entrepreneurs using their funds as the primary source of finance. Bank loans account for less than 16% of financing, highlighting the urgent ₦13 trillion credit gap that continues to limit small business growth.
Regional disparities are also pronounced. While the South West leads in revenue generation and access to credit, many entrepreneurs in the North face constrained financing and infrastructure support despite strong entrepreneurial energy.
Feyisayo Alayande, Executive Secretary of the Lagos State Employment Trust Fund (LSETF), wrote the foreword for the report.
The report also sheds light on the role of gender and education in shaping business outcomes. Across all regions and demographics, the optimism of Nigerian entrepreneurs stands out: a majority remain hopeful about improved business performance by the end of 2025 despite inflationary pressures, rising costs, and structural bottlenecks.
Government support, though impactful where it exists, reaches only about a quarter of surveyed businesses, with issues of transparency, complex processes, and limited awareness undermining its potential. Nevertheless, entrepreneurs remain focused on growth, with goals for profitability, expansion, and exploring new markets at the top of their 2025 strategies.
This report is more than a collection of data — it is a roadmap for action. Policymakers, investors, financial institutions, and development partners will find actionable insights to shape interventions that strengthen Nigeria’s MSME ecosystem. Most importantly, it is a tribute to the creativity and resilience of Nigerian entrepreneurs, whose determination continues to fuel the nation’s economy. Download the full report and join the conversation on how to unlock the full potential of Nigeria’s MSMEs.
