Wale Edun, Minister Of Finance And Coordinating Minister Of The Economy, has blamed the shutdown of about 800 companies in 2023 to foreign exchange market instability, unfulfilled promises, and contract breaches.
Edun made this known on Tuesday in Abuja while giving a sectoral report of President Bola Tinubu’s one year in office.
The minister 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.
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“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, 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.
It would be recalled that on March 6, the Manufacturers Association of Nigeria (MAN) said 767 manufacturers shut down operations, while 335 became distressed, in 2023.
By: Babajide Okeowo
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