Severe flooding across several Nigerian states has disrupted small and medium enterprises, warehouses, and manufacturing operations, leading to submerged facilities, damaged inventories, and halted production. Stakeholders from the organised private sector are calling on federal and state governments, as well as ministries and agencies, to implement long-term flood management strategies. These include improving drainage systems, enforcing bans on illegal construction in flood channels, conducting regular desilting of waterways, and expanding access to affordable insurance for businesses.
The director-general of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, said floods have become a major operational risk, particularly for manufacturers in rainfall-prone industrial areas. He explained that flooded access roads and inundated premises halt production, damage raw materials and finished goods, and result in significant revenue losses. According to him, the financial burden eventually passes to consumers through higher prices. The National Vice President of the Nigerian Association of Small and Medium Enterprises (NASME), Dr Abdulrashid Yerima, noted that most SMEs operate on thin margins and lack insurance or emergency funds, making recovery nearly impossible after flood damage. He cited retail outlets, food processors, fashion businesses, and small manufacturers among those severely affected.
Dr Femi Egbesola, national president of the Association of Small Business Owners of Nigeria (ASBON), highlighted that over 98% of small businesses remain uninsured due to high costs, slow claims processing, and low trust in insurance providers. He urged insurance and pension managers to expand microinsurance coverage for SMEs. Logistics and warehouse operators in Lagos and other affected states also reported major inventory losses as heavy rains persist. Stakeholders collectively stress the need for climate-risk assessments in business planning and emergency financing mechanisms to prevent long-term economic setbacks.
The same infrastructure gaps that disrupt factories and wipe out small businesses during floods remain unaddressed despite repeated warnings from industry leaders. When over 98% of SMEs operate without insurance and production halts become routine, recovery becomes a luxury few can afford.
Editorial note: AI-assisted opinion, not established fact. Full disclaimer →
