Nigeria’s micro, small, and medium enterprises are losing an estimated ₦5 trillion to ₦10 trillion every year to employee fraud and workplace corruption, a development described as a major but underreported threat to the country’s entrepreneurial economy.
The disclosure was made by the Centre for the Promotion of Private Enterprise in a statement signed by its Chief Executive Officer, Muda Yusuf, and shared on Sunday. The organisation warned that occupational fraud within businesses has grown beyond a routine management challenge and now represents a serious economic risk capable of undermining business sustainability, investor confidence, and overall economic growth.
According to the policy think-tank, employee-related fraud takes various forms, including cash theft, payroll manipulation, procurement fraud, and inventory diversion. These practices, it said, are steadily eroding the already narrow profit margins of MSMEs, many of which operate under harsh economic conditions.
The organisation noted that internal corruption has become a silent but significant drain on business profitability and long-term survival. It stressed that the cumulative impact of such practices translates into trillions of naira in losses annually, weakening the sector that serves as the backbone of Nigeria’s economy.
The Centre further observed that employee fraud and occupational corruption now rank among the largest hidden costs facing Nigerian entrepreneurs, with consequences that extend beyond individual businesses to the wider economy. It warned that unchecked internal fraud could discourage investment, stifle job creation, and slow economic development.
According to the think-tank, addressing the problem requires a coordinated approach involving business owners, regulators, and policymakers. It emphasized the need for stronger internal controls, improved corporate governance, and supportive regulatory frameworks to curb employee misconduct.
The Centre concluded that tackling workplace corruption should be treated not merely as a management issue, but as a strategic economic priority essential to safeguarding MSMEs and protecting Nigeria’s broader economic stability.
