One Of Africa’s Largest Syringe Factories Shuts Down 6 Years After Opening In Nigeria. (SaharaReporters)

PEGASUS LEGAL

The firm which opened an operation in Nigeria’s South-south region of Awa in the Onna Local Government Area of Akwa Ibom State, said the decision was made following “unforeseen circumstances affecting our business operations”.

Jubilee Syringe Manufacturing (JSM), once celebrated as Africa’s syringe manufacturing company, has declared temporary redundancy in its operation in Nigeria.

The firm which opened an operation in Nigeria’s South-south region of Awa in the Onna Local Government Area of Akwa Ibom State, said the decision was made following “unforeseen circumstances affecting our business operations”.

According to BusinessDay, the company reputed to be the largest syringe manufacturing venture in Africa was inaugurated in 2017 by then-Vice President, Yemi Osinbajo.

A memo addressed to all the workers of the company, which had stopped production a long time ago, officially announced that its operations came to an end on December 31, 2022.

It said it had “to implement temporary measures to ensure the long-term sustainability of the company.”

Titled “Temporary Redundancy – Service Not Needed Till Further Notice,’’ the memo was signed by the company’s Managing Director, Akin Oyediran.

It read: “We trust this message finds you in good health. With a heavy heart, we write to you today to communicate a challenging decision that Jubilee Syringe Manufacturing Company Limited has had to make due to unforeseen circumstances affecting our business operations.

“After careful consideration and a thorough evaluation of our current business situation, we regret to inform you that we must implement temporary measures to ensure the long-term sustainability of the company.

“Unfortunately, this includes placing all positions including yours on temporary redundancy effective January 1, 2024.

“We want to emphasise that this decision is not a reflection of your individual performance or dedication to the company. The challenging business environment we find ourselves in has compelled us to take these difficult steps.

“Please return all company belongings in your custody.

“Thank you for your understanding and cooperation during these challenging times.”

Media reports quoted Oyediran to have said in an April 2023 interview that the company had secured a credit facility of $1 million, adding that it was due to the enabling environment the state government had been able to provide for the growth of the manufacturing sector.

“Not only have we come into this environment, we are also growing, we are doing other products. The company would in addition to syringes, manufacture gloves, masks, and infusion sets.

“Our investors are investing one million dollars in the company because of the level playing field and the advantages provided by the state government,’’ he had said.

https://businessday.ng/news/article/africas-largest-syringe-factory-in-akwa-ibom-folds-up-6-years-after-opening/?amp=1#amp_tf=From%20%251%24s&aoh=17042892516630&referrer=https%3A%2F%2Fwww.google.com

Some multi-national companies shut down their operations in Nigeria last year, citing economic uncertainties.

Among them are Procter & Gamble (P&G), the world’s largest personnel care and household products company, makers of brands like Pampers, Gillette among others; top global pharmaceutical giants, GlaxoSmithKline (GSK), French pharmaceutical company Sanofi-Aventis, and top Energy firm, Norwegian behemoth Equinor.

Business Insider Africa recently reported that the American company stressed challenges in conducting business as a dollar-denominated organization and attributed its strategic decision to the macroeconomic conditions in Nigeria.

The presidential candidate of the Labour Party in the February 25, 2023, general election Mr Peter Obi among other Nigerians have decried the exit of multi-national companies in Nigeria.

Obi recently said, “A few months ago, I lamented the exit of one of the top global Pharmaceutical giants, GlaxoSmithKline (GSK) from Nigeria. GSK remains a top global pharmaceutical manufacturer and has had 51 years of operations in Nigeria.

“The reason for their exit was that there was no longer a perceived growth in Nigeria anchored on productivity. Today, Procter & Gamble (P&G), the world’s largest personnel care and household products company, makers of iconic brands like Pampers, Gillette, etc, is again leaving Nigeria, for the same reason GSK left.

“Following this also are French pharmaceutical company Sanofi-Aventis, and top Energy firm, Norwegian behemoth Equinor which has sold off its Nigerian business development associates Fifteen years ago, P&G, as they are commonly called, viewed Nigeria as a strategic country of importance and invested millions of dollars in an ultra-modern chain supply structure in Agbara which, sadly, is now up for sale.”

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