Business
Another international firm exits Nigeria over challenging business environment
Barely months after pharmaceutical companies, GlaxoSmithKline and Sanofi Aventis ended operations in Nigeria, another international firm, Jubilee Syringe Manufacturing (JSM), has stopped its operations in the country.
Once celebrated as the largest syringe manufacturing venture in Africa, JSM was inaugurated in 2017 by former Vice President Yemi Osinbajo in Awa, Onna Local Government Area of Akwa Ibom.
It was gathered that the company had halted several months ago, however, the company formalized the conclusion of its operations on December 31, 2023, implementing what it described as temporary measures to ensure the long-term sustainability of the business.
In a memo addressed to all workers and made available to the media, the company announced that all positions, effective January 1, 2024, had been placed on temporary redundancy.
The memo titled “Temporary Redundancy – Service Not Needed Till Further Notice” expressed the difficulty of the decision and outlined the company’s rationale for taking such steps.
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The statement read in part,“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.”
The company emphasized that the decision to place all positions on temporary redundancy was not a reflection of individual performance or dedication but a response to the challenging business environment faced by JSM.
Workers were urged to return all company belongings in their custody, and the memo expressed gratitude for understanding and cooperation during these challenging times.
The closure of Jubilee Syringe Manufacturing Company raises questions about the broader economic challenges faced by industries and businesses, even those once hailed as significant contributors to the local economy.
The move sheds light on the complexities businesses encounter in navigating unforeseen circumstances, further emphasizing the need for resilience and adaptability in today’s dynamic business landscape.
Jubilee syringe manufacturing joins the list of pharmaceutical and medical device companies to cease operations in the country.
GlaxoSmithKline Consumer Nigeria– In August, GSK UK Group announced its intention to cease commercialisation of its prescription medicines and vaccines in Nigeria through the GSK local operating companies and transition to a third-party direct distribution mode.
The company’s exit came as a shock to many who have grown accustomed to its products and further highlighted the extent of the nation’s macroeconomic woes on the business community.
Sanofi-Aventis Nigeria Ltd– In November, the Nigerian arm of the multinational pharmaceutical company Sanofi Aventis in a similar fashion to GSK and P&G announced its ceasing operations in Nigeria and pivoting into a third-party distribution business model in a letter sent to its partners.
Similarly, in early December, P&G announced the dissolution of ground operations in Nigeria and reverted to an import-only business model for its Nigerian market.
The company noted that Nigeria’s macroeconomic problems and forex challenges in Nigeria are responsible for its decision since it is difficult to operate as a dollar-denominated entity.