767 Companies Shut Down as Economic Reforms Bite Hard

(President Bola Tinubu and First Lady. Photo Credit: Parallel Facts)

Since President Bola Tinubu assumed office in May 2023, Nigeria has witnessed a significant wave of business closures, particularly in the manufacturing sector.

Figures from the Manufacturers Association of Nigeria indicate that 767 companies shut down operations in 2023 alone, with several others falling into financial distress.

The period has also seen the restructuring, scaling down or outright exit of a number of multinational firms, including GlaxoSmithKline after more than five decades of operations, as well as Procter & Gamble, Kimberly-Clark, Sanofi, Bayer, Shoprite, Equinor and Bolt Food.

These exits have been largely attributed to foreign exchange shortages, sharp naira depreciation, high inflation, rising energy costs and the removal of fuel subsidies factors that have driven up production costs, restricted access to raw materials and weakened consumer demand.

Job losses have been felt across industrial hubs, particularly in Lagos, Ogun and Anambra states.

While the administration has maintained that it inherited deep-rooted structural economic problems, critics argue that the rapid rollout of major reforms in 2023 intensified pressure on businesses and households without adequate cushioning measures.

Government officials and supporters, however, contend that the reforms were necessary to correct decades of economic distortions, pointing to improvements in non-oil revenue, increased allocations to state governments, stronger foreign reserves and early signs of macroeconomic stabilisation as indicators that long-term foundations are being laid.

Critics counter that the hardship continues to worsen, with more Nigerians slipping further down the poverty index.

More than three years into the administration, questions persist over whether the short-term pain of losing established businesses and livelihoods is justified by the promise of future growth.

For many workers, traders, parents and young Nigerians, the strain remains deeply felt and the coming months are expected to further test whether ongoing economic adjustments will eventually translate into sustainable improvement.