Nigeria's Economic Crisis Worsens: Over 7 Million Businesses Shut Down in Two Years
Nigeria's Economic Crisis Worsens: Over 7 Million Businesses Shut Down in Two Years
Nigeria's economic downturn has reached alarming proportions, with approximately 7.2 million businesses closing down between 2023 and 2024. This staggering figure represents about 30% of the country's estimated 24 million Micro, Small, and Medium Enterprises (MSMEs) .
The shutdowns have resulted in an estimated N94 trillion loss due to multinational divestments and business closures, according to Dr. Segun Omisakin, Chief Economist and Director of Research at the Nigerian Economic Summit Group (NESG). Omisakin revealed this during the launch of the 2025 Private Sector Outlook report.
The economic crisis has been exacerbated by rising inflation, high operational costs, and increasing economic uncertainty. Entrepreneurs and business owners in Nigeria have faced escalating fuel prices, transportation costs, and an overall inflation crisis, making it difficult for many enterprises to stay afloat.
Stakeholders have called on the government to implement urgent policy interventions to stabilize the economy and support struggling businesses. The NESG report emphasizes the need for improved economic policies, investment incentives, and infrastructure development to revive the private sector and restore investor confidence.
Nigeria's business landscape remains fragile, and without strategic reforms, the trend of business closures and capital flight may persist, further deepening the country's economic challenges.
As the country struggles to recover, experts warn that the government must prioritize economic stability and growth. With the inflation rate surging to a 28-year high of 34.6% in November 2024, the Central Bank of Nigeria has implemented aggressive monetary policies, including interest rate hikes, to control inflation .
The International Monetary Fund (IMF) has also warned Nigeria about its worsening cost-of-living crisis, emphasizing the need for urgent policy actions to address the economic challenges .
Sources:
¹ Sahara Reporters: "Over 7 Million Businesses Shut Down In Nigeria In Tinubu’s Two Years Amid Economic Crisis"
² Oasis Magazine: "Navigating Nigeria's Inflation Crisis: A Path to Economic Stability in 2025"
⁴ Business Day: "Nigeria: A nation struggling with economic and security crises"
³ IMF Report: "IMF warns Nigeria over worsening cost-of-living crisis"
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