Over 7 Million Businesses Shut Down in Nigeria Amid Economic Crisis

Nigeria has faced the closure of approximately 7.2 million businesses between 2023 and 2024 under President Bola Tinubu’s government. This has resulted in an estimated N94 trillion loss due to economic instability, exacerbated by high inflation and operational costs. There is an urgent need for government intervention to support struggling enterprises and restore confidence in the economy.

During the administration of President Bola Tinubu, Nigeria has witnessed the closure of approximately 7.2 million businesses between 2023 and 2024. This drastic decline is a consequence of the ongoing economic crisis, leading to significant financial instability within the nation. According to Dr. Segun Omisakin, Chief Economist and Director of Research at the Nigerian Economic Research Group (NESG), the period has also seen an estimated loss of N94 trillion due to multinational divestments and closures.

Dr. Omisakin revealed these alarming statistics at the launch of the 2025 Private Sector Outlook report. He indicated that unfavorable economic conditions have triggered the shutdown of about 30% of Nigeria’s Micro, Small, and Medium Enterprises (MSMEs). Given that there are approximately 24 million MSMEs in Nigeria, this translates to roughly 7.2 million businesses ceasing operations within the last year.

The sharp rise in business closures aligns with escalating inflation rates, high operational costs, and growing economic uncertainty. Entrepreneurs in Nigeria continue to grapple with soaring fuel prices and transportation costs, intensifying the challenges of sustaining their enterprises. Such high costs and inflation place immense strain on business viability across the country.

In response to this crisis, stakeholders have urged the government to execute immediate policy interventions aimed at stabilizing the economy and assisting struggling enterprises. The NESG report emphasized the necessity of enhancing economic policies, offering investment incentives, and fostering infrastructure development to rejuvenate the private sector and restore investor confidence.

Without strategic reforms, Nigeria’s business environment will likely remain fragile. The continuous trend of business closures and capital flight could exacerbate the nation’s economic hardships and stymie future growth prospects.

In summary, under President Bola Tinubu’s administration, Nigeria has experienced the closure of 7.2 million businesses, resulting in a staggering economic loss of N94 trillion. The economic downturn, compounded by inflation and operational costs, has heavily impacted Nigeria’s MSMEs. Urgent government reforms and support are essential to reversing this trend and revitalizing investor confidence in the private sector.

Original Source: saharareporters.com