Nigeria’s micro, small, and medium enterprises (MSMEs) lose between ₦5 trillion and ₦10 trillion every year due to employee fraud and workplace corruption, a new report has revealed.
The Centre for the Promotion of Private Enterprise (CPPE) disclosed this in a statement signed by its Chief Executive Officer, Muda Yusuf, describing occupational fraud as a major but largely underreported threat to small businesses in Nigeria.
According to the organisation, internal fraud has grown beyond a routine management challenge and now poses a serious economic risk.
The CPPE explained that employee-related fraud includes cash theft, payroll manipulation, procurement abuse, and diversion of inventory
These activities, it said, are steadily shrinking the already thin profit margins of MSMEs.
Furthermore, the group noted that many small businesses operate with weak internal controls, informal accounting systems, and high-trust work environments.
The think tank stressed that employee corruption has become a silent but heavy drain on business profitability, with losses running into trillions of naira annually.
It added that addressing the problem requires joint action from business owners, regulators, and policymakers.
According to the CPPE, protecting MSMEs is critical to safeguarding Nigeria’s overall economic stability.
The organisation concluded that tackling workplace corruption is not just a management issue but a strategic economic priority.
