By, springbewsng Media limited March 10,2025

Nigeria’s economic http://Nigeria’s economiccrisis has led to the closure of approximately 7.2 million businesses between 2023 and 2024, raising concerns about the nation’s financial stability. A report by Dr. Segun Omisakin, Chief Economist and Director of Research at the Nigerian Economic Research Group (NESG), estimates that the country lost N94 trillion during this period due to multinational divestments and widespread business shutdowns.

Massive Business Closures and Economic Losses

Speaking at the launch of the 2025 Private Sector Outlook Report,http://2025 Private Sector Outlook Report, Omisakin revealed that about 30% of Nigeria’s Micro, Small, and Medium Enterprises (MSMEshttp://of Nigeria’s Micro, Small, and Medium Enterprises (MSMEs) have shut down due to harsh economic conditions. Given Nigeria’s 24 million MSMEs, this translates to approximately 7.2 million businesses ceasing operations in just two years.

“Between 2023 and 2024, multinational divestments and business closures resulted in an estimated N94 trillion economic loss. Additionally, 30% of Nigeria’s 24 million MSMEs shut down during this period, highlighting the country’s economic vulnerability,” Omisakin stated.

Key Factors Driving Business Shutdowns

Several economic challenges have contributed to the mass closure of businesses, including:

• Rising Inflation: Increasing costs of goods and services have eroded purchasing power.
• High Operational Costs: Surging fuel prices, electricity tariffs, and transportation costs have made business operations unsustainable.
• Economic Uncertainty: Policy instability and declining investor confidence have worsened the situation.

Calls for Government Intervention

Business leaders and economic experts have urged the government to implement urgent policy measures to prevent further business collapses. The NESG report highlights the need for:

• Investment incentives to attract foreign and local investors.
• Improved economic policies to stabilize the business environment.
• Infrastructure development to reduce operational costs.

Without strategic reforms, Nigeria’s business landscape remains at risk, with ongoing closures and capital flight threatening the country’s economic future.