Over 7.2 million businesses closed in Nigeria from 2023 to 2024, resulting in an estimated N94 trillion loss due to multinational divestments. High inflation and rising operational costs have exacerbated this issue, leading to the shutdown of about 30% of the country’s MSMEs. The NESG emphasizes the need for urgent policy reform to stabilize the economy and support 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 crisis has resulted in an estimated loss of N94 trillion due to multinational divestments and company shut downs, as reported by Dr. Segun Omisakin, Chief Economist at the Nigerian Economic Research Group (NESG).
During this timeframe, about 30% of Nigeria’s Micro, Small, and Medium Enterprises (MSMEs), which total around 24 million, have ceased operations. This alarming trend highlights the economic vulnerability the country faces amidst high inflation and rising operational costs. It places considerable pressure on entrepreneurs struggling with increased fuel prices and transportation expenses.
The ongoing challenges have prompted calls for urgent policy interventions from the government to assist businesses and stabilize the economic climate. The NESG has urged for enhancements in economic policy frameworks, investment incentives, and infrastructure development to support the private sector and restore confidence among investors.
The current situation depicts a fragile business environment in Nigeria, with concerns about ongoing closures and capital flight. Without the implementation of strategic reforms, the economic landscape may continue to deteriorate, exacerbating the existing challenges faced by the country’s economy.
The closure of 7.2 million businesses symbolizes Nigeria’s severe economic crisis under President Bola Tinubu, with a staggering loss of N94 trillion recorded. The situation calls for immediate governmental action to revitalize the economy and bolster MSMEs, which have faced crippling operational costs. Without timely interventions and policy reforms, Nigeria’s economic challenges are likely to intensify, perpetuating a cycle of closures and divestments.
Original Source: saharareporters.com
