It’s no secret that the Nigerian economy is struggling, but in 2024, it has reached a breaking point. Small businesses are dying every single day. Even big businesses are leaving the country.
In 2020, more than ten companies exited the Nigerian market as the impact of economic instability and other operational challenges became evident. Notable closures included:
➡︎ Standard Biscuits Nigeria Ltd
➡︎ NASCO Fiber Product Ltd
➡︎ Union Trading Company Nigeria PLC
➡︎ Deli Foods Nigeria Ltd
The departure of companies escalated in 2021, with over 20 firms shutting down operations in Nigeria. Among those that left were:
➡︎ Tower Aluminium Nigeria PLC
➡︎ Framan Industries Ltd
➡︎ Stone Industries Ltd
➡︎ Mufex Nigeria Company Ltd
➡︎ Surest Foam Ltd
The trend continued in 2022, with more than 15 prominent brands ceasing operations in the country, including:
➡︎ Universal Rubber Company Ltd
➡︎ Mother’s Pride Ventures Ltd
➡︎ Errand Products Nigeria Ltd
➡︎Gorgeous Metal Makers Ltd
The wave of exits continued in 2023, as over ten major companies pulled out of Nigeria, citing profitability concerns and challenging business conditions. Notable departures included:
➡︎ Unilever Nigeria PLC
➡︎ Procter & Gamble Nigeria
➡︎ GlaxoSmithKline Consumer Nigeria Ltd
➡︎ ShopRite Nigeria
➡︎ Sanofi-Aventis Nigeria Ltd
➡︎ Equinox Nigeria
➡︎ Bolt Food & Jumia Food Nigeria
2024 (January — October):
In the first six months of 2024, at least five significant companies exited, as the business climate remained difficult. These included:
➡︎ Microsoft Nigeria
➡︎ Total Energies Nigeria (impacted by divestment strategies)
➡︎ PZ Cussons Nigeria PLC
➡︎ Kimberly-Clark Nigeria
➡︎ Diageo PLC
Source: Punch NG — Read full article
Now, if big businesses can’t survive, what hope is left for the small ones?
Let me paint a picture of what small business owners face daily. These are real stories, not exaggerations.
1. The Small Shop on the Street
Take the small shop on your street, for example. You might go there today and buy something at one price, only to return the next day, or even later that evening, and find the price has gone up. It’s maddening, isn’t it? But here’s the heartbreaking part: most of these shop owners make little to no profit. In fact, sometimes they even sell at a loss, and it’s not their fault.
Let me explain with an example I witnessed just this year.
A shop owner buys a carton of Indomie noodles for ₦9,000 (about $5.60). The carton contains 40 pieces. She decides to sell each piece for ₦300 (about $0.19). If she manages to sell all 40, her total revenue will be:
₦300 x 40 = ₦12,000 (about $7.47).
Her profit would then be:
₦12,000 — ₦9,000 = ₦3,000 (about $1.87).
Now, here’s the problem: selling 40 pieces doesn’t happen overnight. It might take weeks, depending on demand. By the time she finishes selling and goes back to the market to restock, the price of a carton may have risen to ₦12,000 (about $7.47) or even ₦13,000 (about $8.09).
Do you see what just happened? That ₦3,000 (about $1.87) profit she expected is gone. She’s left with nothing, no gain, no savings — just losses. How can she sustain her business this way? She ends up dipping into her past savings just to keep the shop running.
And it doesn’t end there. Many people on the street choose to bypass small shops and go to the main market for cheaper prices. This makes it even harder for small businesses to survive.
This is the harsh reality of owning a small business in Nigeria today.
2. The Struggles of Local Bakeries
Let’s talk about local bakeries in Nigeria, the ones that make bread — the kind of bread most of us grew up with, especially the popular Agege bread. In the past, bread and tea were the go-to breakfast for many Nigerian families. But today, bread has become a luxury. Why? The prices of essential ingredients like flour, sugar, milk, and butter have skyrocketed.
These bakeries are now just baking for the sake of baking. Even when they manage to make bread, people simply can’t afford to buy it. Let’s break this down with a scenario:
Imagine a family of five — a mother, a father, and three children. For breakfast, they need:
➡︎ Milo: ₦200 (about $0.12)
➡︎ Milk: ₦200 (about $0.12)
➡︎ Bread: ₦400 (about $0.25)
That’s ₦800 (about $0.50) for just one person’s morning meal. For the entire family of five, it’s: ₦800 x 5 = ₦4,000 (about $2.49).
Now, multiply that by 30 days in a month:
₦4,000 x 30 = ₦120,000 (about $74.76)
₦120,000 just for breakfast in a month! And we haven’t even talked about lunch or dinner yet. How much does an average family even earn?
This is why local bakeries are closing down. Families can’t afford the bread, and bakers can’t afford to keep making it. The once-loved Agege bread is slowly disappearing from our tables, taking with it a piece of our shared culture and everyday life.
3. The Vanishing Joy of Fireworks
In Nigeria, fireworks used to light up the skies during Christmas and New Year celebrations. It wasn’t just a tradition; it was a part of the festive joy that brought families and communities together. Children and even adults would rush to buy fireworks, filling the streets with excitement and colorful explosions.
But today, those joyous sparks are fading. Fireworks have become so expensive that it’s rare to even hear them anymore. When I was growing up, I used to have packets of fireworks every holiday season. They were affordable and accessible.
Now, that’s just a distant memory. The cost of fireworks has soared, and for many families, it’s no longer something they can afford. The business has all but disappeared. For over five years, I haven’t even bought a single firework — not because I don’t want to, but because it’s simply out of reach.
This is yet another example of how traditions and businesses that brought happiness are being stripped away due to the harsh economic realities in Nigeria.
4. The Decline of Private Schools in Nigeria
Nigeria’s private school system is on the brink of collapse, and it’s heartbreaking to witness. Running a good private school is expensive, and with the current economic situation, many parents can no longer afford it. They’re left with no choice but to withdraw their children from private schools, either moving them to lower-cost private schools or enrolling them in public schools.
But here’s the problem: many public schools in Nigeria are in terrible condition. While some states like Lagos have relatively good public schools, the same cannot be said for most parts of the country.
Private schools are cutting costs wherever they can, and teachers are bearing the brunt of it. Many teachers have lost their jobs, while those who remain are overworked. It’s now common for one teacher to handle multiple subjects, not because they want to, but because schools are trying to avoid more layoffs. These teachers are being worked to exhaustion.
And what about their salaries? On the low end, private school teachers earn as little as ₦20,000–₦50,000 (about $12.44–$31.13) a month. Even on the higher end, their pay isn’t much better. These teachers aren’t paid nearly enough to live on, let alone give their best in the classroom. Teaching has become a matter of survival, and the children are the ones suffering most.
Children today are finding school increasingly difficult. The little joys of education — like inter-house sports, intellectual competitions, excursions to exciting places — are disappearing. Schools can no longer afford them, and students are left without these enriching experiences.
This is dangerous for the future of our children and our country. When schools cannot provide quality education, we lose not only businesses but also the chance to nurture the next generation.
5. The Disappearance of Christmas Business Events in Some Areas
In Nigeria, Christmas was once a time of vibrant celebrations and joyous community events. Streets came alive with parties and gatherings, creating memories that lasted a lifetime. One of the most popular traditions was the street jam — a festive overnight party where neighbors and friends came together to dance, eat, and celebrate.
I remember attending one called Skelewu Night. It was magical. A DJ was invited to keep the party going all night, drinks flowed freely, delicious food was served, and the streets were beautifully decorated. These events weren’t just about fun; they created business opportunities too. Food vendors, drink sellers, event decorators, and DJs thrived during the season.
These events were funded by sponsors, contributions from residents, and sometimes local businesses. But now, these cherished Christmas traditions have vanished.
Why? The harsh economic reality in Nigeria. Sponsors have disappeared, residents can no longer afford to contribute, and businesses that once supported these events are struggling to stay afloat themselves.
The streets are quiet now, and the joy these events brought to communities has been replaced by silence and struggle. Another casualty of the economy.
6. The Struggles of Game Houses in Nigeria
Game houses used to be a haven for fun and competition. They were designed for people who couldn’t afford to buy gaming consoles and TVs but still wanted to enjoy the thrill of gaming, whether for a few minutes or hours. It was also a place where friends and strangers came together to challenge each other in intense gaming competitions.
But today, game houses are disappearing fast, and the reasons are heartbreaking.
The biggest challenge is the cost of running these businesses. After the initial expense of buying gaming consoles and TVs, electricity becomes the next hurdle. Nigeria’s electricity supply is notoriously unreliable, forcing business owners to rely on generators. But with the cost of fuel now above ₦1,000 (about $0.62) per liter, generators are no longer a viable option.
The expenses to keep the game house running have become higher than the profits. Most game houses are located in school environments, with students as their primary customers. If the business owners increase their prices to cover costs, they risk losing these customers, as students simply can’t afford the higher fees.
As a result, many game house businesses have shut down entirely.
The few game houses that remain are turning to solar inverters to power their operations. While this is a more sustainable option, the cost of setting up solar systems is incredibly high — far beyond what most small business owners can afford.
Game houses were once places of joy and community, but now they’re fading away, yet another victim of Nigeria’s harsh economic realities.
7. The Struggle of Starting a Business in Nigeria
In Nigeria, there’s a tradition deeply rooted in our culture — a pathway to entrepreneurship that many follow. A young person goes to serve a business owner, working and learning from them for seven years or however long they agree upon. During this time, they’re taught everything: how the business operates, where goods are sourced, even how imports are handled. At the end of their service, the business owner “settles” them with a sum of money to start their own venture.
It’s a system built on trust and mentorship, and for years, it has been a lifeline for aspiring entrepreneurs. But today, this pathway is crumbling under the weight of Nigeria’s economic crisis.
The naira-to-dollar exchange rate is so bad that even after being settled, the money isn’t enough to get started. For instance, renting a shop in a prime business area has become unbearably expensive.
Let’s consider an example. Imagine you’re settled with ₦2,000,000 (about $1,245). Years ago, that could have been enough to rent a shop, buy stock, and cover initial expenses. But now, shop rents alone can swallow more than half of that amount, leaving you with almost nothing to work with.
How can someone start a business in such conditions? Many end up stuck, unable to take the next step after years of hard work and dedication. This is not just disheartening — it’s a sign of a system that’s failing the very people who are supposed to drive its growth.
This struggle to start a business is a story of crushed dreams, a reality that countless young Nigerians face today.
8. The Struggles of Eateries in Nigeria
One of the biggest challenges for eateries in Nigeria today is the skyrocketing cost of foodstuff. This has severely impacted the food industry, making it increasingly difficult to run a business. The rising expenses, especially for essential ingredients needed to prepare meals, have become overwhelming for many.
Many eateries have been forced to shut down. Others that are still running have had no choice but to raise their prices drastically. But instead of bringing in more customers, this has only pushed people away.
Why? Because eating out has become too expensive. Families and individuals who once enjoyed dining out now find it cheaper and more practical to cook at home. The truth is, eating out has become a luxury, reserved only for special occasions or emergencies.
Most eateries that still survive today are only busy when a family wants to celebrate something, or when a couple wants to mark a special day. On normal days, they’re nearly empty, struggling to cover basic operating costs.
It’s a sad reality. Eateries, once bustling hubs of laughter, connection, and celebration, are now fighting to stay afloat in an economy that simply doesn’t make room for them anymore.
What Can We Do?
The truth is, I don’t have all the answers. But what I do know is that these businesses — small, struggling, and filled with dreams — are the backbone of our economy. The pain, the tears, the hard work, and the sacrifices — it’s all part of the struggle. But in these tough times, it’s easy to lose hope.
So, what should we do? Maybe it starts with understanding and supporting one another. Every time we shop locally, every time we choose to help someone in their business, we’re making a difference, however small. It might not solve all the problems, but it can help.
For the small business owners out there, don’t give up. You are the heart of this country. And for the rest of us, let’s remember that each small purchase, each kind word, and each show of support counts.
Thank you for taking the time to read this. I hope it sparks a conversation, a movement, and a call for change. Nigeria’s small businesses need us now more than ever.
