Insights and analysis

Small businesses in Nigeria had a tough 2016. What will 2017 look like?

#DailyNugget: SMEs collectively contribute as much as 50% of GDP and 25% of jobs in Nigeria

2016 was a tough year for Nigerians and Nigeria’s small businesses. By December inflation had hit over 18% leaving households with a fraction of the purchasing power they had a year earlier. SMEs, which collectively contribute as much as 50% of GDP and account for about 25% of jobs in Nigeria, were bound to feel the pinch. To make matters worse, the Naira tumbled 36.68% against the dollar over the year, the fourth worst performing African currency of 2016 relative to USD. Furthermore, the Stanbic IBTC’s Purchasing Managers’ Index (PMI) reveals a manufacturing sector that is under pressure.

In this Nairametrics podcast, Tunji Andrews and Ugo Obi-Chukwu discuss what 2017 might look like for small businesses in Nigeria.