The Nicaraguan government, led by President Daniel Ortega, has shut down over 5,000 NGOs and organizations, including the American Chamber of Commerce and numerous religious institutions, citing failures to report financial statements. The recent closures, which include 1,500 organizations in a single day, have been condemned by the Inter-American Commission on Human Rights and the United Nations for restricting civic freedoms. Critics, including sociologists and political analysts, argue that this crackdown erodes civil society and economic stability, creating a climate of uncertainty for trade and investment. Ortega's administration has targeted NGOs since the 2018 protests, alleging they are foreign-funded efforts to undermine his regime. The closures are seen as part of a broader strategy to consolidate power and limit public dissent. The impact on social services is significant, as many of these organizations provided essential relief to vulnerable populations.