Micro, small, and medium enterprises (MSMEs) in Nigeria are losing an estimated N5 trillion to N10 trillion annually. Due to employee fraud and workplace corruption.
This alarming trend was revealed by the Centre for the Promotion of Private Enterprise (CPPE). In a statement shared with on Sunday. The policy think-tank described it as one of the most critical hidden threats to Nigeria’s entrepreneurial economy.
According to the CPPE, occupational fraud has become a silent but significant challenge, draining business sustainability, profitability, and overall economic growth. The organisation emphasized that employee corruption is no longer just a managerial issue but a strategic economic risk. Addressing this requires coordinated efforts from business owners, regulators, and policymakers.
Key Findings from CPPE
The CPPE’s analysis shows that internal fraud and employee-related corruption. Are responsible for trillions of naira in annual losses across Nigeria’s MSME sector.
“Employee corruption and occupational fraud are among the largest hidden drains on Nigeria’s entrepreneurial economy. With annual losses estimated between N5 trillion and N10 trillion,” the CPPE stated.
The organisation also noted that these fraudulent practices reduce government revenue by weakening tax collections. Furthermore, much of the fraud goes unreported, meaning the actual economic impact could be even greater than current estimates.
To unlock the full potential of Nigeria’s MSME sector as a driver of economic growth. The CPPE stressed the need for stronger fraud prevention measures, improved governance, and greater digital transparency.
“While occupational fraud affects all MSME segments. The risk is highest in sectors with cash-intensive operations, poor documentation, inventory handling, and limited supervision,” the statement added.
Broader Implications
The CPPE highlighted that while all MSMEs are vulnerable to fraud, certain operational characteristics make some businesses more at risk. These findings underscore how deeply occupational fraud has infiltrated Nigeria’s private sector, quietly undermining its foundation.
For Nigeria’s MSMEs to thrive, addressing these challenges must become a priority for both businesses and policymakers.
