Nigeria estimates over 3 million small businesses lost due to climate change

Nigeria has experienced a staggering loss of approximately 3 million small businesses over the past few years due to environmental factors, such as climate change, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) chief executive officer, Charles Odii, said.

Mr Odii attributed this substantial loss to environmental factors, particularly flooding in states like Benue and Kogi.

Mr Odii said this at an event organised by the European Union Chamber of Commerce in Lagos. The event looked at the strategies for sustainable business growth in a challenging macro-economic environment.

“Upon assumption in office, we looked at the data and one of the things that we want to do is be driven by data and we saw that we lost about three million small businesses in Nigeria. They used to be about 42 million. And they had to do with environmental factors especially flooding in Benue and Kogi,” Mr Odii said.

Recurring problem

Flooding is a common disaster in Nigeria. It has been more severe in recent years, an escalation experts attribute to climate change.

According to the data from the National Emergency Management Agency, over 662 persons lost their lives, 3,174 suffered injuries and 2,430,445 individuals were displaced by flooding in in 2022.

Flooding in Nigeria isn’t just a natural disaster; it’s a nightmare for small businesses. Their physical locations are submerged, stock is destroyed, and access to customers and suppliers is severed.

Beyond immediate damage, the ripple effects are immense. Disruptions in transportation and communication cripple operations, while rising food prices due to disrupted agriculture put further strain on already vulnerable businesses. Recovery can be slow and arduous, forcing many to close permanently, pushing livelihoods and dreams underwater.

Mr. Odii encouraged small business owners to adopt alternative energy sources that have a minimal impact on the environment.

Mr Oddi said emphasized the agency’s intention to expand its energy transition initiative by incorporating the establishment of “green cities dedicated to light manufacturing for small businesses”.