800 companies shut down due to economic instability – Finance minister clears air

Wale Edun, the minister of finance, has said that the economic instability forced 800 companies to shut down operations

Edun, while stating this on Tuesday in Abuja during the sectoral report of President Bola Tinubu’s one year in office, said the departure of these companies was not sudden.

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.

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

Edun said the new environment for investors involves tackling inflation, eventually resulting in lower interest rates.

The Manufacturers Association of Nigeria (MAN) had, on March 6,  said 767 manufacturers shut down operations, while 335 became distressed in 2023.