Over 7 Million Businesses Close in Nigeria Amid Economic Turmoil Under Tinubu’s Leadership
Nigeria has seen the closure of approximately 7.2 million businesses between 2023 and 2024, leading to an estimated N94 trillion loss. This situation is exacerbated by rising inflation and operational costs, with 30% of Micro, Small, and Medium Enterprises shutting down. Stakeholders have called for urgent government interventions and policy reforms to stabilize the economy and support struggling businesses.
Nigeria has experienced a significant economic downturn, leading to the closure of approximately 7.2 million businesses under President Bola Tinubu’s administration from 2023 to 2024. This alarming figure reflects a broader financial instability, exacerbated by multinational divestments that have resulted in an estimated loss of N94 trillion, according to Dr. Segun Omisakin, Chief Economist at the Nigerian Economic Research Group (NESG).
Dr. Omisakin highlighted that the current economic climate has unfavourably affected around 30% of Nigeria’s estimated 24 million Micro, Small, and Medium Enterprises (MSMEs). The closure of these businesses underscores a severe vulnerability within the nation’s economy and reflects the rising challenges faced by entrepreneurs.
The surge in business shutdowns coincides with escalating inflation, soaring operational costs, and heightened economic uncertainty. Entrepreneurs in Nigeria have reported substantial difficulties due to rising fuel prices and transportation costs, contributing to the unsustainable operating environment for many businesses.
Addressing this crisis, various stakeholders have urged the government to implement immediate policy interventions to stabilize the economy and provide much-needed support to struggling enterprises. The NESG report also calls for enhanced economic policies, investment incentives, and infrastructure improvements to revive the private sector and restore investor confidence.
Ultimately, Nigeria’s business landscape is precarious. Without the introduction of strategic reforms, the trend of business failures and capital flight is likely to continue, compounding the nation’s economic challenges and hindering recovery efforts.
The closure of over 7 million businesses in Nigeria within two years reflects a severe economic crisis, significantly impacting the nation’s financial stability. The figures presented indicate a desperate need for policy intervention and strategic reforms to revive the private sector and restore investor confidence. Without these measures, Nigeria’s economy may face continuous vulnerabilities and further decline.
Original Source: saharareporters.com
