A new report by Nigerian data analytics firm, Mustard Insights, has revealed that 44% of businesses in the country reduced their workforce in 2024 due to economic challenges and operational constraints.
The report, based on a nationwide survey of companies across various sectors, attributed the layoffs to rising inflation, foreign exchange volatility, high production costs, and declining consumer spending. Many businesses, particularly in manufacturing, finance, and retail, struggled to maintain profitability, leading to widespread job cuts.
Industry experts have raised concerns over the impact of these workforce reductions, warning that high unemployment rates could further weaken economic growth and increase social instability. Small and medium-sized enterprises (SMEs), which make up a significant portion of Nigeria’s economy, were particularly hard-hit, with many forced to scale down operations or shut down entirely.
Business leaders are calling on the government to implement policies that support job creation, such as tax reliefs, access to affordable credit, and incentives for local production. The report also recommends stronger economic reforms to stabilize the business environment and prevent further job losses in 2025.
As companies continue to navigate Nigeria’s economic difficulties, stakeholders stress the need for urgent intervention to protect both businesses and employees from further financial hardship.
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