Under President Bola Tinubu, Nigeria has seen the closure of approximately 7.2 million businesses from 2023 to 2024, resulting in an estimated economic loss of N94 trillion. This reflects a significant 30% shutdown rate among the 24 million Micro, Small, and Medium Enterprises (MSMEs), driven by rising inflation and high operational costs. There is a pressing need for government reforms to stabilize and revitalize the economy.
In Nigeria, over 7 million businesses have shuttered between 2023 and 2024 under President Bola Tinubu, raising significant concerns regarding the nation’s economic stability. Reports indicate an estimated N94 trillion loss attributed to multinational divestments and business closures, as noted by Dr. Segun Omisakin, Chief Economist and Director of Research at the Nigerian Economic Research Group (NESG).
During the launch of the 2025 Private Sector Outlook report, Dr. Omisakin revealed that adverse economic conditions have caused approximately 30 percent of the country’s Micro, Small, and Medium Enterprises (MSMEs) to close. Given that Nigeria accommodates roughly 24 million MSMEs, this suggests that around 7.2 million businesses have ceased operations in the recent year.
The closures reflect an alarming trend characterized by rising inflation and soaring operational costs. Entrepreneurs in Nigeria have been grappling with escalating fuel prices and transportation expenses amidst an overarching inflation crisis, making business viability increasingly challenging.
The pressing need for action has prompted stakeholders to urge the government to implement timely policy interventions aimed at stabilizing the economy and sustaining struggling businesses. The NESG report underlines the importance of enhancing economic policies, providing investment incentives, and developing infrastructure to rejuvenate the private sector and rebuild investor confidence.
Without strategic reforms, Nigeria’s fragile business environment may continue to witness a deterioration in the form of additional closures and capital flight, exacerbating the nation’s economic woes.
The closure of over 7 million businesses in Nigeria is a reflection of the severe economic challenges faced under President Bola Tinubu’s administration. Amidst rising inflation and operational costs, urgent governmental policy interventions are necessary to revitalize the economy and support the private sector. The NESG report highlights critical areas in need of reform to prevent further economic decline and restore investor confidence.
Original Source: saharareporters.com
