Businesses in Nigeria witnessed economic challenges in 2024 as inflation impacted their revenue, direct costs and job retention, according to Nigeria’s Business Survival Report 2024: Strategies for Sustainable Business Growth Amid Economic Turbulence prepared by Mustard Insights, a Nigerian data start-up.
The report shows that 85.4 percent of companies reported a substantial increase in business costs due to inflation; 65 percent increased the prices of their goods/services while 43.7 percent of business owners reduced their workforce in 2024.
Also, 41.7 percent of businesses diversified their product/service offerings and 46.6 percent of businesses failed to meet growth targets.
The findings in the report are derived from extensive research and the direct input of business leaders, entrepreneurs, and industry stakeholders. It also covers an in-depth comparative analysis of Q3 results for the last three-year period (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.
Read also: Coping in Nigeria’s high-inflation economy
“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 2024 compared to the rise in direct costs from 2022 to 2023,” the report indicated.
The report also indicates that between 2022-2023 year-on-year, 70 percent of listed companies experienced only less than a 50 percent increase in direct costs, 20 percent experienced a 51 percent to 100 percent increase in direct costs, and only 10 percent had above 100 percent increase in costs, in YTD Q3 2024 compared to the same period in 2023, 80 percent of companies experienced as much as 51 percent to 100 percent increase in costs and 20 percent experienced above 100 percent increase in direct costs. None of the analysed companies experienced less than a 50 percent increase in direct costs in 2024.
The report, which is based on an in-depth survey of over 100 business leaders, also evaluated the strategies employed by these larger entities and provides a benchmark for businesses seeking sustainable growth in a volatile economy.
The report further reveals that content analysis culled out of news reports isolating the key obstacles the largest companies in the nation encountered including economic, regulatory, and operational difficulties, as well as the strategies they employed to navigate these challenges amidst both local and global pressures.
The Nigeria’s Business Survival Report 2024 provides data-driven insights and actionable recommendations, and serves as an invaluable resource for businesses looking to adapt, grow, and thrive despite economic uncertainty.
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