New business creation in Nigeria has declined over the past three years, according to the 2024 State of Entrepreneurship (SoE) Report by Fate Foundation.
The business birth rate fell to 24% in 2024, down from 30% in 2023 and 32% in 2022, due to economic challenges including inflation, insecurity, poor power supply, and limited access to finance.
Despite the slowdown, female entrepreneurs accounted for 47% of new businesses, and youth-led enterprises made up 44.4%, showing a growing role for women and young Nigerians. Youth entrepreneurs also led in technology adoption, with 72% integrating digital tools, which supported business growth.
The report noted that female-led businesses were more affected by the tough environment, with only 63% reporting growth compared with 74% for male-led businesses. Nigeria’s entrepreneurial index also dropped to 0.46 in 2024, down from 0.52 in 2023.
Fate Foundation recommended that the government ensure macroeconomic stability, implement business-friendly policies, simplify business registration, and create platforms for public-private dialogue to support entrepreneurs.
