Jubilee Syringe Manufacturing (JSM) has temporarily ceased its operations, owing to Foreign Exchange (FX) challenges.
Managing Director of JSM, Akin Oyediran, who confirmed the development to TheCable on Thursday, said: “We all know what the problem is in Nigeria. Foreign exchange, import duties, interest rate, this is basically why the company is closing down.”
According to him, the company is only shutting down temporarily to source for funding, adding that “once we get the financing, we’ll open back up”.
The Akwa Ibom-based company is said to be the largest syringe manufacturer in Africa.
JSM was inaugurated in 2017 by former Vice-President, Yemi Osinbajo but started operations in 2020.
While it is unknown when the factory will reopen, JSM, in a memo to staff circulating in the local media, said the move was necessary to ensure its long-term sustainability.
The company also told workers that the closure was a “challenging decision” that needed to be made 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,” the memo partly read.
Meanwhile 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.
Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, said companies exiting Nigeria had been stretched to “breaking point.”
“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,” he told Punch.
via: Information Nigeria