Over 7.2 million businesses closed in Nigeria under President Bola Tinubu’s government, leading to a reported N94 trillion loss due to multinational divestments. Approximately 30% of the country’s 24 million MSMEs have ceased operations amid rising inflation and operational costs. Stakeholders demand urgent policy interventions to stabilize the economy and support struggling enterprises.
Nigeria has experienced a significant economic downturn, resulting in the closure of approximately 7.2 million businesses during President Bola Tinubu’s administration. This crisis, attributed to adverse economic conditions, has raised alarms regarding the country’s financial stability. Specifically, an estimated loss of N94 trillion is reported due to multinational divestments and business closures, as noted by Dr. Segun Omisakin, Chief Economist at the Nigerian Economic Research Group (NESG).
Dr. Omisakin disclosed these findings during the launch of the 2025 Private Sector Outlook report. He indicated that about 30% of Nigeria’s estimated 24 million Micro, Small, and Medium Enterprises (MSMEs), equating to approximately 7.2 million, have ceased operations within the past year due to severe economic challenges. This level of closure emphasizes the vulnerability of Nigeria’s economy.
The ongoing crisis is compounded by rising inflation, operational costs, and economic uncertainty, placing immense pressure on entrepreneurs and business owners. Notably, escalating fuel prices, increased transportation expenses, and a general inflation crisis have hindered many businesses’ capacity to remain functional.
To address these pressing issues, stakeholders have urged the government to implement immediate policy interventions aimed at stabilizing the economy and supporting distressed businesses. The NESG report highlights the necessity for enhanced economic policies, investment incentives, and infrastructure improvements to rejuvenate the private sector and rebuild investor confidence.
In conclusion, Nigeria’s business environment is in a precarious state. Without prompt and strategic reforms, the country may continue to face a concerning trend of business closures and capital flight, further exacerbating its economic difficulties.
In summary, Nigeria’s economic landscape faces critical challenges, with over 7.2 million businesses having closed under President Bola Tinubu’s administration. The estimated N94 trillion loss due to divestments highlights the urgency for governmental intervention. To mitigate further deterioration, prioritizing sustainable economic policies and infrastructure enhancements is essential for revitalizing the private sector and encouraging investment.
Original Source: saharareporters.com
