FG Invites Investors to Invest in Nigeria After 800 Companies Shut Down

• Nigeria's finance minister said economic volatility is to blame for 800 companies leaving Nigeria last year
• He explained that President Bola Tinubu's administration inherited an unstable economy from the previous administration
• He, however, said that the problems have now been fixed as investors can now increase their equity and make investments

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

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 minister said the exit of the companies from Nigeria was not unexpected, according to TheCable report.

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Problems now fixed

Edun claimed that unstable markets, broken contracts, and unmet promises drove away the companies. He added that these problems have been fixed.

He said:

“Government did inherit an unstable economy. The 800 companies or so did not make up their minds overnight. They stayed until they could stay no more.

“The conditions which sent them packing are no more. Those conditions were a foreign exchange market that was in no way fit for purpose.

“There was no liquidity. They were a general economic regime marked by instability, broken promises, and lack of contract adherence.”

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.

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A year of difficulty for businesses

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.

Legit.ng earlier reported how Unilever, GSK, and other major foreign companies exited Nigeria in 2023.

Nigerian fintech startup shuts down

Legit.ng also reported that Nigerian fintech startup Thepeer shut 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.

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Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng