Nigeria has recorded a steady decline in new business formation over the last three years, according to the latest State of Entrepreneurship Report by Fate Foundation.
The report shows that the “business birth rate” dropped to 24 percent in 2024, compared to 30 percent in 2023 and 32 percent in 2022.
Researchers linked the trend to harsh economic conditions, including inflation, foreign exchange difficulties, poor infrastructure and insecurity.
While overall numbers are falling, the survey noted growth in women and youth participation.
Female-led businesses rose to 47 percent in 2024, up from 42 percent a year earlier, while youth-owned ventures accounted for 44.4 percent of all new enterprises.
Many of the younger entrepreneurs are leveraging technology, with more than seven in ten reporting growth.
Nigeria’s entrepreneurial index also slipped to 0.46 in 2024, down from 0.52 in 2023 and 0.58 in 2022.
The report urged the government to stabilise the economy, ease business registration, and strengthen policies that encourage investment and non-oil exports.
