“Between 2023 and 2024, multinational divestments and business closures led to an estimated N94 trillion economic loss. Additionally, 30% of Nigeria’s 24 million registered MSMEs shut down, underscoring the country’s economic vulnerability,” Dr. Segun Omisakin, Chief Economist and Director of Research at The Nigerian Economic Summit Group (NESG). In other words, 7.2 million businesses closed down between 2023 and 2024 due to the harsh business climate.
That will reset any economy. My position remains that Nigeria needs to deploy massive subsidies in the economy (yes, I am a Keynesian democrat and I like subsidies and stimulations) as without massive subsidies and investments, Nigeria could have a lost decade. If I am in the Aso Rock right now, among others, I will ask the government to stimulate the economy via these three policies:
- Commit at least $3 billion to build a deep seaport in the Akwa Ibom area that will connect the seaport all the way to Aba and Onitsha via railway. This must start immediately and that will open economic lives in the region.
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Deploy purchasing guarantee on processed agro-products to the tune of $5 billion with Maiduguri and Kano declared free agro processing zones. The government will commit to buy from your factory any processed agro produce from any factory engineered for export. This will stimulate agro production while removing briefcase farmers as you have to have the goods before you can get the guarantee.
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Waive all taxes on profits and gains on venture investments for a decade. This will get many fund managers to station funds in Nigeria. We can attract $50 billion within a decade and Lagos will rule Africa.
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https://www.tekedia.com/nigerian-economy-in-crisis-7-2-million-msmes-shut-down-in-2023-2024-nesg/
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