MABISCO, 54Gene, 4 Other Major Nigerian Companies That Ceased Operations in 2023
- In 2023, Nigerian businesses faced challenges and difficulties attributed to the demanding business environment.
- Many businesses that could no longer withstand the storm had to close down operations in the country
- Nigeria witnessed the death of six major local businesses in December 2023, leading to higher unemployment in the country
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The year 2023 brought turbulence for Nigerian businesses, which had to deal with a challenging business environment.
Legit.ng earlier reported how Unilever, GSK, and other major foreign companies exited Nigeria in 2023.
Source: Getty Images
Many businesses have been impacted by persistent problems such as a lack of foreign exchange, insufficient power, port congestion, numerous taxation, insecurity, and poor infrastructure, particularly in the industrial sector.
Legit.ng has identified six major Nigerian businesses that ceased operations in the country in the ten months leading up to December 2023 as a result of the challenging business environment.
Here is the highlight of the companies:
MABISCO
Ogun State-based MABISCO, a locally-owned biscuit firm, shut down in March.
The company was founded in 2016 and has more than 300 distributors nationwide. Its packing equipment could process 350 packs per minute, and its manufacturing capacity was 3.5 tons per hour.
54Gene
The genomics firm 54Gene closed its doors in September after four years of operation, during which it raised $45 million in three fundraising rounds.
The company's death in September culminated in a turbulent year in 2022, with numerous staff grievances and other legal troubles.
Lazarpay
Lazerpay, a web3 and cryptocurrency payment startup, shut down in April after two years because of financial difficulties.
The business only lasted two years before closing its doors.
Jubilee Syringe Manufacturing Company
Former Vice President Yemi Osinbajo unveiled the Jubilee Syringe Manufacturing Company in 2017.
The company abruptly stopped operations in December, citing unanticipated events that impacted business operations.
The corporation carried out what it claimed as temporary personnel redundancies in December, even though manufacturing had stopped some months before, to guarantee the enterprise's long-term viability.
DropX
Founded in 2021, DropX was a delivery-focused firm that shut down in December due to difficult startup economic conditions.
Praise Alli-Johnson and Oluwatope Liasu launched the company in 2021 with many ideas to fulfil their mission: to provide businesses and individuals with fast and dependable delivery services.
Okadabooks
After ten years, digital publishing and bookselling pioneer Okadabooks closed its doors in November, citing unsurmountable obstacles in the challenging macroeconomic environment.
Nigeria fintech Woven Finance shuts down, refers customers to Access Bank's Hydrogen
Legit.ng earlier reported that Nigerian fintech, Woven Finance, joined the league of startups shutting down operations in the country.
The startup founded by Trium, a venture group by Coronation Group, announced via an email to customers that it is terminating its service on Wednesday morning, according to a TechCabal report.
The fintech has directed its customers to move to Hydrogen, an Access Bank-owned fintech business.
PAY ATTENTION: Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!
Source: Legit.ng
