The following is a comprehensive overview of recent developments in Nigeria's economy, with a focus on the impact on small and medium-sized enterprises (SMEs):
Dangote Refinery Price Hike:
The Dangote Petroleum Refinery has increased its ex-depot price of Premium Motor Spirit (PMS), or petrol, to ₦875 per liter, a significant rise from the previous ₦774 per liter. This adjustment is attributed to global crude oil market volatility and replacement cost pressures, despite the refinery's growing domestic refining capacity. The hike sets a new benchmark for petrol pricing across the supply chain, with industry analysts predicting retail prices could reach ₦1,000 per liter in some states. This development highlights the vulnerability of Nigeria's transport and logistics sectors to fuel cost fluctuations, potentially leading to increased transport fares, goods prices, and operational costs for businesses, impacting consumer prices in the short term.
SME Credit Access Crisis:
Despite record lending by the Bank of Industry (BOI) totaling ₦636 billion to over 7,000 businesses in 2025, Nigeria's SMEs are facing tightened credit access. The Association of Small Business Owners of Nigeria (ASBON) reports that most small businesses remain locked out of affordable financing due to high interest rates, stricter lending conditions, and declining risk appetite among commercial banks. This financing gap is structural, affecting the survival of many SMEs, which are already struggling with limited access to capital. ASBON warns that this situation poses risks to job creation and economic growth.
Simplified AfCFTA Trade Guides:
The United Nations Economic Commission for Africa (ECA) has launched simplified step-by-step guides to assist SMEs in accessing cross-border markets within the African Continental Free Trade Area (AfCFTA). These guides address the lack of accurate and easy-to-understand information on intra-African trade. The initiative aims to simplify bureaucratic steps, including obtaining trade licenses, certificates of origin, and meeting health and safety requirements, thereby promoting inclusive intra-African trade and enabling SMEs to fully benefit from AfCFTA opportunities.
