During this period, Nigeria recorded 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 Research Group (NESG).
Nigeria’s economic downturn has led to the closure of approximately 7.2 million businesses between 2023 and 2024 under the President Bola Tinubu-led government, exacerbating concerns about the country’s financial stability.
During this period, Nigeria recorded 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 Research Group (NESG).
He made this revelation during the launch of the 2025 Private Sector Outlook report.
Omisakin highlighted that unfavourable economic conditions led to the shutdown of about 30% of Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.
Given that the country has an estimated 24 million MSMEs, this means around 7.2 million businesses have ceased operations within the past year.
“Between 2023 and 2024, multinational divestments and business closures led to an estimated N94 trillion economic loss. Additionally, 30% of Nigeria’s 24 million MSMEs shut down during this period, underscoring the country’s economic vulnerability,” he stated.
The alarming rate of business closures comes amid 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.
As the cost of doing business continues to rise, stakeholders have called on the government to implement urgent policy interventions to stabilize the economy and support struggling businesses.
The NESG report further emphasised 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.