Nigeria has witnessed approximately 7.2 million business closures from 2023 to 2024, under President Bola Tinubu, leading to an estimated N94 trillion economic loss. Dr. Segun Omisakin highlights that 30% of the country’s MSMEs have shut down due to unfavorable economic conditions, prompting calls for urgent government intervention to stabilize the economy and support struggling businesses.
Between 2023 and 2024, Nigeria experienced the closure of approximately 7.2 million businesses, significantly impacting the nation’s economic stability under President Bola Tinubu’s administration. This situation is exacerbated by an estimated loss of N94 trillion attributed to multinational divestments and business shutdowns, as reported by Dr. Segun Omisakin, Chief Economist and Director of Research at the Nigerian Economic Research Group (NESG).
Dr. Omisakin noted that around 30% of Nigeria’s Micro, Small, and Medium Enterprises (MSMEs)—which number about 24 million—have ceased operations during this period. He disclosed these findings during the launch of the 2025 Private Sector Outlook report, emphasizing the vulnerabilities within the Nigerian economy.
The surge in business closures is accompanied by rising inflation, increased operational costs, and heightened economic uncertainties. Entrepreneurs in Nigeria are grappling with soaring fuel prices, transportation expenses, and an overall inflation crisis, which continue to undermine their operational viability.
In light of these challenges, stakeholders are urging the government to adopt immediate policy interventions aimed at stabilizing the economy and assisting distressed businesses. The NESG report advocates for enhanced economic policies, investment incentives, and infrastructure improvements as essential measures to rejuvenate the private sector and re-establish investor confidence.
The continuing fragility of Nigeria’s business environment necessitates prompt and strategic reforms; otherwise, the trend of business closures and capital flight may persist, aggravating the nation’s economic dilemmas further.
In conclusion, the unprecedented closure of over 7 million businesses in Nigeria within a year underlines severe economic challenges faced by the country. With a staggering N94 trillion loss and the shutdown of 30% of MSMEs, urgent policy actions are essential. Strengthening economic measures, providing incentives, and enhancing infrastructure could play pivotal roles in restoring stability and bolstering investor confidence in Nigeria’s economy.
Original Source: saharareporters.com
