Small and Medium Enterprises (SMEs) across Nigeria are raising fresh concerns over their inability to restock goods in malls and retail outlets, pointing to regulatory hurdles, inflation, access to credit, and forex prioritisation as key barriers crippling their operations.
Stakeholders say that these issues, which have intensified over the last few months, are now visibly reflected in empty shelves across major retail stores in the country.
Dr. Femi Egbesola, President of the Association of Small Business Owners of Nigeria (ASBON), explained that a new policy by the Standards Organisation of Nigeria (SON) is compounding the problem.
According to him, from March 1, 2025, SON mandated that all products displayed in malls must carry SON certification—a requirement that most SMEs were not prepared for.
“Before now, most products only had NAFDAC approval, which was sufficient,” Egbesola said. “This SON certification policy is new and has become a major bottleneck. Malls now refuse to accept products without it, and SMEs can wait up to three months to get certified.”
He described the policy as duplicative and exclusionary, noting that many SME products are now being sidelined from stores, hurting both producers and retailers. “It’s affecting the visibility and availability of our products,” he lamented.
Beyond regulatory issues, SMEs are also battling rising credit costs and delayed payments. According to Egbesola, many shopping malls now require local purchase orders and delay payments for up to 90 days—a tough blow in an economy plagued by inflation and interest rates hovering near historic highs.
“With limited access to affordable finance, it’s almost impossible for small businesses to wait three months to get paid,” he said.
Faced with domestic bottlenecks, Nigerian SMEs are now increasingly turning to export markets, especially within Africa. Egbesola said many are using the African Continental Free Trade Area (AfCFTA) to sell goods to neighbouring countries and earn foreign exchange.
“Selling abroad is now more profitable,” he explained. “You sell in dollars, bring it back to Nigeria, and convert at a good rate. It’s helping SMEs stay afloat despite challenges at home.”
However, the long-term consequence, he warns, is a shrinking manufacturing base. “Fewer SMEs are involved in actual production. It’s becoming more difficult for them to access raw materials or compete with larger companies that have easier access to foreign exchange,” he added.
Another major pain point is the struggle to source foreign exchange. Egbesola explained that SMEs often rely on the black market, where rates are significantly higher than official channels.
“By the time we buy dollars from the black market and import materials, we can’t compete with big players who access FX at cheaper rates from commercial banks,” he noted.
To survive the crisis, Egbesola encouraged SMEs and mall operators to think creatively. He suggested subletting empty retail spaces to niche vendors or introducing flexible use of space to offset operational costs.
“If you have empty shops, let someone selling yoghurt or perfumes take the space. It spreads your overhead and supports smaller players,” he said.
He also called on mall operators to support SMEs with soft loans to help them meet regulatory requirements like SON certification. “Even helping vendors get certified makes a difference,” he said.
Egbesola urged the mall operators to collaborate and engage with government regulators as a unified voice, stating, “If they synergise, they can better advocate for policies that support both them and their SME partners.”
Director General of the Nigerian Association of Small and Medium Enterprises (NASME), Mr. Eke Ubiji, also echoed the concerns.
Despite a rebased Consumer Price Index that puts inflation at 23.18%, Ubiji said prices remain astronomically high and are discouraging consumers from patronising retailers.
“If you’re restocking, you must factor in how expensive the goods are. When prices go up, buyers pull back, and sales drop,” he explained.
On the SON certification policy, Ubiji acknowledged its disruption to supply chains but described it as a necessary step toward ensuring product quality.
He urged retailers to introduce internal quality control systems to ensure that all products meet minimum safety and performance standards. “Don’t just focus on aesthetics; ensure safety and compliance as well,” he advised.
Ubiji also stressed that retail operators should raise their own internal standards, insisting that “retailers must demand the best from the producers they source from.
