… $1m Akwa Ibom financial stimulus to Jubilee in limbo?
After struggling in the depressed Nigerian economy, Jubilee Syringe Manufacturing has officially shut its operations in Awa Iman, Onna Local Government Area of Akwa Ibom State.
The company once touted as the largest syringe manufacturing venture in Africa is said to have owed its workers salary for months before it quit the shores of Akwa Ibom.
The firm, which opened an operation in Nigeria’s South-south region of Awa Iman in the Onna Local Government Area of Akwa Ibom State and was inaugurated in 2017 by former Vice President Yemi Osinbajo, said the decision to leave Nigeria was made following “unforeseen circumstances affecting our business operations.”
Though owned by a Turkish national, Onur Kumral, Jubilee Syringe Manufacturing Limited was one of the 25 industries the immediate past Akwa Ibom Governor Udom Emmanuel administration had consistently boasted was owned by the state government.
A memo announcing the exit was addressed to workers of the company. The company had ceased production some months ago, but officially announced that its operations came to an end on December 31, 2022.
Entitled “Temporary Redundancy – Service Not Needed Till Further Notice,’’ the memo was signed by the company’s Managing Director, Akin Oyediran.
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It said it had “to implement temporary measures to ensure the long-term sustainability of the company.”
The memo read in part, “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.”
The company’s decision to close its factory came over two years after it announced plans were underway to export its products to Germany.
It also came less than a year after the company’s Managing Director, Oyediran said that the company had secured a credit facility of $1m.
Meanwhile, the Manufacturers Association of Nigeria has blamed the current business environment for the continued exit of multinational companies including the latest departure of Jubilee Syringe Manufacturing.
The Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, said companies exiting Nigeria had been stretched to “breaking point.”
He said, “The reason why companies are closing is evident. It is just a matter of resilience. When it gets to the breaking point, you will have to give up because of the employment environment.”
Before ,now, British multinational pharmaceutical and biotechnology company, GlaxoSmithKline (GSK), had shut its operations in Nigeria months ago.
Owing to increased competition from local companies and imports from India and China, GSK Nigeria saw its half-year sales drop to N7.75 billion from N14.8bn in the same period a year ago.
GSK Nigeria, which stated its decision was filed with the Nigerian Exchange Limited, signed by the Company Secretary, Frederick Ichekwai, added that its parent company, GSK Plc UK, had revealed its intent to cease commercialisation of its prescription medicines and vaccines through its Nigerian subsidiary.
“In our published Q2 results we disclosed that the GSK UK Group has informed GlaxoSmithKline Consumer Nigeria PLC of its strategic intent to cease commercialization of its prescription medicines and vaccines in Nigeria through the GSK local operating companies and transition to a third-party direct distribution model for its pharmaceutical products,” it said.
GlaxoSmithKline Consumer Nigeria Plc was incorporated in Nigeria in 1971 and commenced business in 1972, under the name Beecham Limited.
