A report said 43.7 per cent of Nigeria’s businesses reduced their workforces last year as a result of macroeconomic challenges.
The report released by data company, Mustard Insights, surveyed over 100 business owners, executives and industry leaders.
It claimed that the year’s challenging economic conditions affected organisations of varying sizes.
As part of strategies to survive the economic hardship, the report titled ‘Nigeria’s Business Survival Report 2024: Strategies for Sustainable Business Growth amid Economic Turbulence’ said that 65 per cent of businesses increased the prices of their goods and services to stay afloat.
While the findings of the report are derived from research and direct input of business leaders, entrepreneurs and industry stakeholders, Mustard Insights said it also covers a comparative analysis of Q3 results of 2022, 2023 and 2024 to assess comparative changes in revenue, direct costs, total expenses and salaries of a Nigeria’s top-listed companies (NGX-30).
The raw material was identified as the highest cost element (input costs), with analysis of NGX companies revealing a significant increase in costs in the year 2024 compared to 2023.
The report revealed that between 2022 and 2023 year on year, 70 per cent of listed companies experienced only less than a 50 per cent increase in direct costs; 20 per cent experienced a 51 per cent to 100 per cent increase in direct costs while 10 per cent had above 100 per cent increase in costs.
(The Guardian)
