A new report by Fate Foundation has revealed a sharp decline in Nigeria’s business creation rate, with the State of Entrepreneurship (SoE) 2024 Report showing a drop to 24% in 2024, down from 30% in 2023 and 32% in 2022. The slowdown, largely driven by harsh economic conditions, highlights the growing challenges entrepreneurs face in sustaining and scaling ventures.
Despite the downturn, the study underscores promising shifts in the ecosystem. Female entrepreneurs now account for nearly half of all new businesses, rising steadily from 43% in 2021 to 48% in 2024, signaling stronger participation of women in enterprise. Similarly, youth-led businesses reached their highest share at 44.4%, with young founders showing leadership in technology adoption (72%), which directly correlates with higher growth rates.
However, Nigeria’s entrepreneurial index dropped to 0.46 (from 0.52 in 2023), reflecting persistent barriers such as poor access to finance, unreliable power, forex volatility, and insecurity. According to Adenike Adeyemi, Executive Director of Fate Foundation, targeted interventions that support women, empower youth, and expand technology-driven solutions could unlock sustainable growth. She urged the government to stabilise macroeconomic policies, expand non-oil exports, and simplify business registration to accelerate recovery.
The findings point to a dual reality: while structural headwinds remain, Nigeria’s women and youth are reshaping the entrepreneurial landscape with resilience, ambition, and innovation.
