The Nigerian Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has stated that the government of President Bola Ahmed Tinubu was not responsible for the economic conditions that led to the shutdown of about 800 companies in 2023.
Edun made this disclosure during a ministerial press briefing in Abuja on Tuesday, explaining that the departure of these companies from Nigeria’s economic landscape was not an overnight decision, but rather the result of factors such as market instability, unfulfilled promises, and breaches of contract.
“Our government inherits the assets and liabilities of the previous administration. The 800 companies or so did not make up their minds overnight. They stayed until they could stay no more,” Edun said.
The minister further elaborated that the conditions that drove these companies out of the country, including a foreign exchange market that was unfit for business and a general economic regime marked by instability, broken promises, and lack of adherence to contracts, are being addressed by the current administration.
“The new environment which investors face is one in which inflation is being attacked and eventually lead to lower interest rates where investors can use the very vibrant domestic market to add their own equities and invest,” Edun assured.
Earlier this year, the Manufacturing Association of Nigeria (MAN) reported a concerning trend within the industry, indicating that about 767 manufacturing companies shut down operations in Nigeria in 2023. Additionally, the association noted that another 335 companies were in financial distress during the same period.
According to MAN, this development was attributed to various economic difficulties, including exchange rate volatility, rising inflation, and a general worsening of the investment climate.
“The manufacturing sector is already beset with multidimensional challenges. In year 2023, 335 manufacturing companies became distressed and 767 shut down,” the spokesperson for MAN said in a statement.
