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MSMEs in Nigeria Incurs Operating Cost of About ₦700k Annually – Study

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CEM REPORT, MSME | The average annual revenue for MSMEs in Nigeria is ₦2.3 million while the operating margin is ₦768,000.

This is as 62 per cent of MSMEs had a monthly revenue lower than ₦300,000 while 47% earned a monthly revenue lower than ₦200,000.

According to a recent study by Small Firm Diaries and published by the National Bureau of Statistics (NBS), less than 50 per cent of Micro Small and Medium Enterprises (MSMEs) owners operate their bank accounts regularly.


The study titled “Country Data Overview” revealed that 40 per cent of MSMEs in Nigeria are owned by women while 12 per cent are co-owned between men and women and 48 per cent are owned by men alone.

Additionally, 45 per cent of women-owned MSMEs support their business through credit facilities while 47 per cent of MSMEs owned by men took loans to support their businesses.

However, the amount of loans received differed greatly between the genders. While women received an average of ₦57,000, their male counterparts received an average of ₦93,000.

On digital financial system adoption, the report revealed that 97 per cent of MSMEs have a bank account but less than 50 per cent operate it regularly.

Also, 80 per cent attest to owning a debit card while 65 per cent have adopted mobile banking services and 56 per cent use POS machines.

Furthermore, 60 per cent claim that the late arrival of money is their challenge in adopting digital financial system/services.

While 63 per cent claim to use the service because someone was paying them through the medium. Another 30 per cent complained that missing money and loss of access was their major problem in using DFS.

In terms of the adoption of technology for their businesses, more than 50 per cent of MSME owners claim that cost is the major barrier to the use of technology. Around 27 per cent stated the skill required was the barrier.

Data for the Small Firm Diaries Project was collected from 161 firms, spread across 3 states – Enugu, Lagos and Kaduna.

The study was conducted over the course of a 12-month period between August 2021 and August 2022.

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