PRESIDENT Bola Tinubu’s removal of fuel subsidy has adversely affected 90% of businesses in Nigeria, as per a new report.
Titled “State of Entrepreneurship, ” the report, published by Fate Foundation, surveyed over 10,000 businesses across the 36 states of the country and the FCT.
The report revealed that smaller businesses were significantly impacted by the policy, leading to increased operating costs, decreased profits due to weak demand, and customer loss.
The subsidy removal policy had the most significant impact on businesses in the South-east, while those in the South-south were least affected.
It stated, “Entrepreneurs in the south-east were the most affected, while those in the South-South were the least affected, relative to other regions. The impact of the policy was even for both male and female entrepreneurs.”
What is more, the report indicates that 89% of businesses in the country, particularly the agricultural sector, were adversely impacted by the naira scarcity prior to the general elections. The impact of the naira scarcity on farmers led to the contraction of the agricultural sector’s output by 0.9% in the GDP report for Q1. The decline was the first in over three decades.
In terms of Nigerian entrepreneurs’ outlook, Nigerian entrepreneurs’ optimism about business opportunities is 86%, below the 93% positive outlook in 2022.
The report indicates that the service sector is the primary sector that contributes the majority of businesses in the country.
It states: “While 35% of businesses offer services, 22% sell goods, and another 42% trade in both goods and services. At the sectoral level, 18.8% of total businesses operate in the wholesale and retail trade sector”.