Insists economy resilient, attractive to investors
Independent Media and Policy Initiative (IMPI) has allayed fears over the shutdown of 767 companies in Nigeria due to infrastructural deficits and economic downturn.
Rather, the think tank maintained that verifiable data indicate that the most populous black country has a robust investment climate under President Bola Tinubu-led administration, contrary to the narrative of an economy short of investor’s confidence.
In a policy statement by its chairman, Niyi Akinsiju, in Abuja, the group said it concluded after a comparative analysis involving Nigeria and some other jurisdictions, including India and the United Kingdom.
It noted: “Compared to the Manufacturers Association of Nigeria’s announcement of 767 companies’ shutdown in 2023, an apparent public revelation to serve as a depression trigger for the country, people and government, the Small Business advocacy group in the United Kingdom frames the 345,000 business closures in that country as: ‘More businesses closing down than starting up for the first time in 12 years’.
“This, by our consideration, is an objective rendition of data. It is obvious that the 767 companies’ shutdowns in Nigeria do not in any way come close to the 345,000 closures recorded in the United Kingdom in that same period.
“Neither can the number be compared to the 460,000 companies that shut down every quarter, that is every three months, in China or the 10,655 Micro, Small and Medium Enterprises’ (MSMEs) shutdown in 2022-2023 in India.”
IMP continued: “As routinely rendered, we are further informed by the Indian data that there were over 11,000 new firms started for every one of the 175 shutdowns in 2022.
“Against this background, we require, for instance, that while so much dust was raised over the exit of giant drug makers like GSK Plc and Sanofi, among others, the data should have also included statistics circulated by the National Agency for Food & Drug Administration and Control (NAFDAC), which indicated that 105 applications for the construction of drug manufacturing facilities have been approved across the country and that 35 per cent of the approved applications have completed construction.
“This is inclusive of the fact that over 20 newly registered local drug manufacturers have cumulatively invested over $2 billion in the erection and completion of WHO-compliant facilities that manufacture quality pharmaceuticals and essential medicines for Nigerians.”
The organisation, while stating that the economy is on track, submitted that advocacy groups that are always quick to dig up negative narratives prefer to ignore the many positives in the economy despite global headwinds.
It warned against the de-marketing of the country.
