A staggering 7 million businesses have closed their doors in Nigeria over the past two years, a sharp indicator of the nation’s worsening economic crisis under the leadership of President Bola Ahmed Tinubu. The closure of these businesses, spanning various sectors, highlights the growing economic difficulties faced by Nigerian entrepreneurs, small businesses, and consumers, contributing to an increasingly fragile national economy.
According to a recent report by the Nigerian Economic Survey, businesses across the nation are grappling with a combination of factors, including inflation, high energy costs, fuel scarcity, and a volatile currency. These issues, compounded by policy decisions that critics argue have failed to stimulate growth, have made it increasingly difficult for businesses—especially small and medium-sized enterprises (SMEs)—to remain viable.
"The scale of business closures in the last two years reflects an alarming trend of economic instability that cannot be ignored," said Dr. Chika Okafor, an economist at the University of Lagos. "From market traders to tech startups, no sector has been immune. While larger corporations have the resources to weather storms, the backbone of Nigeria’s economy—the small businesses—are feeling the brunt of an unfavorable business climate."
The government’s controversial policies, including fuel subsidy removal and the naira's devaluation, have sparked protests and criticism from business owners and workers alike. Rising operational costs and increased taxation have also made it difficult for many businesses to operate profitably, forcing many to close their doors for good. With millions of Nigerians now out of work, the unemployment rate has soared, further deepening the national economic challenges.
The National Association of Nigerian Traders (NANTS) has voiced concerns that the closure of businesses has led to widespread job losses, particularly in the informal sector, which employs a significant portion of the Nigerian workforce. NANTS has called for urgent government intervention to implement policies that promote ease of doing business, support entrepreneurship, and provide better access to credit for SMEs.
In response to these challenges, the government has announced several initiatives aimed at stimulating the economy, including loan programs for small businesses and the promotion of digital innovation. However, many business owners remain skeptical, questioning the effectiveness of these programs and demanding more tangible results to address the deep-rooted economic challenges.