Wale Edun, minister of finance, says economic instability forced 800 companies to shut down operations.
Edun made this known on Tuesday in Abuja during the sectoral report of President Bola Tinubu’s one year in office.
Edun explained that the departure of these companies from Nigeria’s economic landscape did not happen overnight; instead, factors like market instability, unfulfilled promises, and breaches of contract forced them out.
He said issues such as market instability, unfulfilled promises, and contract breaches drove them away, but these issues have now been resolved.
“Government did inherit an unstable economy,” Edun said.
“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.
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“There was no liquidity. They were a general economic regime marked by instability, broken promises, and lack of adherence to contracts.”
Edun said the new environment for investors involves tackling inflation, which will eventually result in lower interest rates.
This, he said, will allow investors to leverage the dynamic domestic markets to enhance their equity and invest.
On March 6, the Manufacturers Association of Nigeria (MAN) said 767 manufacturers shut down operations, while 335 became distressed in 2023.