Under President Bola Tinubu’s administration, Nigeria has witnessed the closure of approximately 7.2 million businesses between 2023 and 2024, resulting in an estimated economic loss of N94 trillion. The harsh economic climate has led to the shutdown of 30% of Micro, Small, and Medium Enterprises, heightened by inflation and rising costs. Urgent policy interventions are necessary to revive the economy and support struggling businesses.
Nigeria has faced significant economic turmoil under President Bola Tinubu, resulting in approximately 7.2 million business closures between 2023 and 2024. This alarming trend has raised serious concerns regarding the nation’s financial stability. According to Dr. Segun Omisakin, Chief Economist and Director of Research at the Nigerian Economic Research Group (NESG), the country has suffered about N94 trillion in losses due to multinational divestments and these business closures.
Dr. Omisakin presented these findings during the launch of the 2025 Private Sector Outlook report. The report indicated that the adverse economic conditions have led to the shutdown of roughly 30% of Nigeria’s Micro, Small, and Medium Enterprises (MSMEs), translating to around 7.2 million business failures. Given that Nigeria has an estimated 24 million MSMEs, this statistic underlines the severity of the crisis.
The significant number of closures coincides with troubling economic indicators, including heightened inflation and increasing operational expenses. Entrepreneurs in Nigeria have reported soaring fuel prices and transportation costs, severely hampering their ability to sustain operations. The continuing rise in the cost of doing business has led to calls from industry stakeholders for immediate government intervention.
Additionally, the NESG report advocates for enhanced economic policies, investment incentives, and improvements in infrastructure to rejuvenate the struggling private sector and rebuild investor trust. Without strategic reforms, experts warn that the cycle of business closures and capital flight may persist, amplifying the nation’s ongoing economic challenges.
In summary, Nigeria’s economic situation has deteriorated significantly, with over 7 million businesses shutting down due to unfavorable conditions. The estimated N94 trillion loss from multinational divestments and the failure of approximately 30% of MSMEs points to a dire need for governmental action. Enhanced policies and support for the private sector are crucial to restoring stability and confidence in Nigeria’s economy.
Original Source: saharareporters.com
