The FATE Foundation has urged policymakers and financial institutions to address unreliable power supply, skill deficits and limited access to credit. The group says these gaps continue to constrain small business productivity across Nigeria. The warning is not new. It is also not being addressed at scale.
The mechanics matter. Micro, small and medium enterprises account for most employment in Nigeria. They also face the highest energy costs. A tailor who runs a generator spends more on diesel than on fabric. A welder who cannot access credit cannot buy equipment. A young graduate who lacks digital skills cannot compete. These are not separate problems. They are the same problem: the cost of doing business.
This mirrors the 2017 MSME survey, which found that power and finance were the biggest constraints. It also echoes the 2020 COVID-19 support funds, which many small businesses could not access because of collateral requirements. The difference now is that the economy is weaker. The winners are policymakers who act; financial institutions that design simpler products; and MSMEs that gain support. The losers are small businesses that continue to pay for power and credit at premium rates; and workers who lose jobs when businesses close.
Winners: Policymakers who act; financial institutions designing simpler products; supported MSMEs.
Losers: Small businesses paying premium rates; workers losing jobs.
Bottom Line: Small businesses do not need another conference. They need cheaper power and simpler credit, and they need both this year.