Finance Minister Denies Tinubu Administration’s Responsibility for 800 Company Shutdowns in 2023

By Milcah Tanimu

During a ministerial press briefing in Abuja on Tuesday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, refuted claims that President Tinubu’s administration was accountable for the closure of approximately 800 companies in Nigeria in 2023.

Edun clarified that the economic downturn leading to the departure of these companies did not occur suddenly but was a result of various factors such as market instability, unmet commitments, and breaches of contracts.

Highlighting the current administration’s efforts, Edun stated, “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.”

He pointed out that the conditions prompting these companies to cease operations, including a volatile foreign exchange market and economic instability, are being addressed by the current government.

“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 added.

Earlier reports from the Manufacturing Association of Nigeria (MAN) indicated that 767 manufacturing companies shut down operations in Nigeria in 2023, with an additional 335 facing financial distress. MAN attributed these challenges to factors such as exchange rate fluctuations, rising inflation, and a deteriorating investment climate.

According to the Nigeria Bureau of Statistics (NBS), the GDP dropped to 2.9% in the first quarter of 2024, reflecting a decline from the previous quarter. However, sectors such as finance, agriculture, trade, and manufacturing contributed positively to GDP growth in Q1 2024.


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