The minister of finance, Wale Edun, has said that economic volatility is responsible for forcing 800 enterprises to close business in 2023.
Edun disclosed this in Abuja on Tuesday, May 28, during the sectoral report celebrating President Bola Tinubu’s first year in office.
The exit of the companies was not unexpected, according to the minister in a The Cable report.
Edun claimed that unstable markets, broken contracts, and unmet promises drove away the companies. He added that these problems have been fixed.
He said:
According to Edun, investors now face a new climate that includes combating inflation, which will ultimately lead to reduced interest rates.
He claimed that this will enable investors to increase their equity and make investments by taking advantage of the vibrant domestic markets.
The Manufacturers Association of Nigeria (MAN) announced on March 6 that 335 manufacturers experienced difficulty in 2023, and 767 manufacturers ceased operations.
The past year brought turbulence for Nigerian businesses, which had to deal with a challenging business environment.
Many businesses, particularly in the industrial sector, have been impacted by persistent problems such as a lack of foreign exchange, insufficient power, port congestion, numerous taxation, insecurity, and poor infrastructure.
TimesNow.com.ng earlier reported how Unilever, GSK, and other major foreign companies exited Nigeria in 2023.
TimesNow.com.ng reported that Nigerian fintech startup Thepeer is shutting its operations nearly two years after raising $2.1 million in a Seed round.
In a statement on its website, the founders cited compliance issues that hindered it from launching key wallet providers.
Chike Ononye (CEO) and Michael Okoh (CTO) also blamed the slow acceptance of wallets as a viable payment option for diversifying resources into enlightenment.
Source: TimesNow.com.ng
