A report by Nigerian data company, Mustard Insights, has revealed that 43.7% of business owners in Nigeria reduced their workforce in the year 2024.
Based on a survey of over 100 business owners, executives, and industry leaders, the report shows how the year’s challenging economic conditions have affected organizations 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’ also revealed that 65% of businesses increased the prices of their goods and services in the year to stay afloat.
While the findings of the report are derived from research and the direct input of business leaders, entrepreneurs, and industry stakeholders, Mustard Insights said it also covers a comparative analysis of Q3 results for the last three years (2022, 2023, and 2024) to assess comparative changes in revenue, direct costs, total expenses, and salaries of a sample of Nigeria’s top-listed companies on the NGX-30.
An excerpt of the report reads, “Similar to survey insights where raw material cost was identified as the highest cost element (input costs), analysis of NGX companies reveals a significant increase in costs in the year 2024 compared to 2023 compared to the rise in direct costs from 2022 to 2023.”
Some other key insights derived from the survey include:
The year 2024 was no doubt a challenging one for businesses operating in Nigeria. The country’s economy faced significant disruptions following the removal of fuel subsidies, the devaluation of the Naira, and a surge in inflation, amongst others.