Jubilee Syringe Manufacturing (JSM), once celebrated as Africa’s syringe manufacturing leader, has declared temporary redundancy in its Nigerian operations due to “unforeseen circumstances affecting our business operations.”
The firm, inaugurated in 2017 by then-Vice President Yemi Osinbajo, had previously secured a $1 million credit facility and planned to expand beyond syringes into gloves, masks, and infusion sets.
However, a memo addressed to employees confirmed the closure of operations on December 31, 2023, attributing it to the need for “temporary measures to ensure the long-term sustainability of the company.”
This decision follows the recent exodus of multinational companies from Nigeria, including Procter & Gamble, GlaxoSmithKline, Sanofi-Aventis, and Equinor, all citing economic uncertainties and challenging business environments.
The presidential candidate of the Labour Party, Peter Obi, has expressed concerns about this trend, highlighting the potential impact on growth and productivity
While the specific reasons behind JSM’s closure remain unclear, it adds to the growing concerns about Nigeria’s economic climate and its ability to attract and retain businesses.
The memo signed by the company’s Managing Director, Akin Oyediran, titled “Temporary Redundancy – Service Not Needed Till Further Notice,’’ read, “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 (JSM) 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.”
Media reports quoted Oyediran to have said in an April 2023 interview that the company had secured a credit facility of $1 million, adding that it was due to the enabling environment the state government had been able to provide for the growth of the manufacturing sector.
“Not only have we come into this environment, we are also growing, we are doing other products. The company would in addition to syringes, manufacture gloves, masks, and infusion sets.
“Our investors are investing one million dollars in the company because of the level playing field and the advantages provided by the state government,’’ he had said.
Some multinational companies shut down their operations in Nigeria last year, citing economic uncertainties.
Among them are top global pharmaceutical giants, GlaxoSmithKline (GSK), French pharmaceutical company Sanofi-Aventis, and top Energy firm, Norwegian behemoth Equinor.
Business Insider Africa recently reported that the American company stressed challenges in conducting business as a dollar-denominated organisation and attributed its strategic decision to the macroeconomic conditions in Nigeria.