After GSK's Exit, Nigerians Fear Another Major Company May Leave Nigeria
- A syringe manufacturing company operating in Akwa Ibom state has opened up on its plan to continue operating in the country
- The company, in a notice to workers, said it was placing all positions on temporary redundancy, emphasising that the company was only on break
- The company said its decision was influenced by unforeseen circumstances that were witnessed in the country
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
Jubilee Syringe Manufacturing (JSM) Company, in Awa, Onna local government area of Akwa Ibom state, trended recently over claims that it halted operations in Nigeria.
The company, however, stated that its decision to halt operations was only temporary. It, however, did not mention when operations would resume.
Source: Getty Images
The company, in a statement, said the decision was influenced by unforeseen circumstances affecting its business operations.
Effective January 1, 2024, the company, in a memo sent to workers, placed all positions on temporary redundancy.
It stated:
“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.
Following considerable thought and a detailed assessment of its existing business environment, the company regretfully informed its employees of its decision to implement measures to guarantee its long-term viability.
It added:
“Unfortunately, this includes placing all positions including yours on temporary redundancy effective January 1, 2024.
The company's communication with its staff members has elicited diverse reactions from Nigerians, prompting speculation about the possibility of the company exiting the country soon.
The company denies it is leaving Nigeria
According to a Vanguard report, JSM investors denied press allegations that the company was fully ceasing operations in the nation in a statement sent through Onur Kumral, managing director (MD) of VKS Group of Companies.
The MD said contrary to claim, the company is just going through a restructuring phase.
Kumral said:
“When you set up a multimillion-dollar factory such as JSM, it is important to take a critical review of its operations and that of the management staff. JSM is a for-profit business and when expected targets are not met year after year, a shake-up is inevitable, which is what we have decided to do.
“We want to assure our esteemed customers that there is no need to panic. We are still in business as Jubilee Syringe Manufacturing Limited and we are poised to keep to our commitment to remain as the producer of the highest quality syringes in Nigeria."
A different perspective last year
BuisnessDay reported that in a previous interview last year, the company's managing director, Akin Oyediran, disclosed that he had obtained a $1 million credit facility.
He claimed that this was because of the state government's supportive climate to expand the manufacturing industry.
The company claims that it is expanding and producing other goods in addition to entering the environmental space.
Based on this, it declared that the company would start producing gloves, masks, infusion sets, and syringes.
Notably, former Vice President Yemi Osinbajo launched the business in 2017, which is regarded as Africa's biggest syringe manufacturing endeavour.
Unilever, GSK, four other major foreign companies that exited Nigeria in 2023
Legit.ng earlier reported how companies are exiting Nigeria due to toxic environment for business.
This was worsened by the removal of fuel subsidy, which further toughened the ease of doing business in the country.
From fast-moving consumer goods (FMCG) companies to energy and pharmaceutical companies, the inability to repatriate funds in Nigeria and the unpredictable local currency against foreign currencies has triggered multinationals to bid the country goodbye.
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Source: Legit.ng
