Economic experts have warned that Nigeria’s current foreign exchange policies and the depreciation of the local currency are severely threatening the survival of small and medium-sized enterprises and jeopardizing the nation's broader economic stability. Following the unification of the foreign exchange market by the Central Bank of Nigeria and persistent dollar shortages, businesses heavily dependent on imported raw materials, machinery, and finished goods have faced mounting operational pressures. Data indicates that a significant majority of small businesses suffered major profit declines due to skyrocketing foreign exchange costs, with import expenses surging noticeably by the end of the year. Industry leaders and financial experts note that these challenges are further compounded by an overreliance on oil revenues, policy inconsistencies, and high parallel market rates, which force business owners to cut import orders and struggle with declining sales. To prevent mass layoffs, heightened poverty, and setbacks to economic diversification, analysts are strongly urging the government to implement targeted reforms, stabilize the foreign exchange market, provide tax incentives for local production, and improve credit access to help struggling enterprises thrive.