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Nigeria: Africa’s largest syringe factory enters ‘temporary redundancy’ after 6 years

Published

4 months ago

January 3, 2024

Africa’s largest syringe factory, Jubilee Syringe Manufacturing (JSM) Company, has ended operations, declaring temporary redundancy.

It declared that its operations ended on December 31, 2022, despite having ceased production many months earlier. The company stated that it had “to implement temporary measures to ensure the long-term sustainability of the company.”

A copy of a memo that was sent to every employee in the company and which Businessday obtained revealed that all positions “have been placed on temporary redundancy effective January 1, 2024.”

The statement titled, “Temporary Redundancy: Service Not Needed Till Further Notice”, and addressed to all workers, 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 performance or dedication to the company. The challenging business environment we find ourselves in has compelled us to take these difficult steps”.

The development runs counter to assertions made by Akin Oyediran, managing director of the company, who stated in an interview in April of last year that the company had secured a $1 million credit facility, and added that the growth of the manufacturing sector was made possible by the enabling environment the state government was able to provide.

“Not only have we come into this environment, we are also growing; we are making 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 said.

Nigeria’s underdeveloped infrastructure is a bottleneck to broad-based economic development. Lately, the country has witnessed the exit of foreign firms, with manufacturers already lamenting about the new year.

Related Topics:Featured JSM Nigeria Syringe

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Nigeria’s Petroleum Regulator begins bidding round for 12 oil blocks

Published

14 hours ago

May 14, 2024

Ifeoluwa Dada

The Nigerian Upstream Petroleum Regulatory Commission has announced the start of the bidding process for 12 oil blocks recently put up for sale. It also marks the beginning of the 2024 Nigeria Petroleum Licensing Round and the continuation of the 2022/2023 mini-bid round.

This was stated in a press release issued by the commission’s CEO, Gbenga Komolafe, on Monday in Abuja. Last month, the commission made the first announcement about the bidding process.

It also waived the signing bonus requirement throughout the bidding process to entice investors to bid on the auctioned oil blocks.

He said, “On behalf of the Federal Government of Nigeria, the Nigerian Upstream Petroleum Regulatory Commission is pleased to announce the commencement of the 2024 Petroleum Licensing Round.”

On the number of blocks for the offer, Komolafe noted, “We have identified 12 blocks that cut across deep offshore, shallow water and onshore terrains to be made available to interested investors.”

According to him, this licensing round represents a key milestone in our commitment to supporting long-term growth and innovation in the energy sector, as well as creating economic prospects for investment to stimulate new exploration and development activities in our petroleum landscape.

He explained that the 2024 Licensing Round will provide an opportunity for domestic and foreign parties to participate in the exploration and development of Nigeria’s hydrocarbon resources. He emphasized that having access to high-quality geological and geophysical data is important to this approach.

Komolafe stated that the National Data Repository of NUPRC, in partnership with multi-client partners, is committed to providing prospective bidders with access to broad and strong datasets to help them make better decisions.

Commenting on the 12-block offer, he stated that it is consistent with the licensing round’s objectives and includes a varied range of exploratory possibilities and discoveries with varying technical and operational preferences.

Komolafe added, “Our goal for this licensing round is to harness innovative exploration techniques and foster partnerships that will enhance our production capabilities and ensure environmental sustainability.

“We anticipate that this initiative will not only expand our operations but also significantly contribute to the global energy supply, aligning with international energy security goals.”

VenturesNow

Ecobank’s $183 million impairment losses highlight hazards in sovereign bonds

Published

14 hours ago

May 14, 2024

Ifeoluwa Dada

Ecobank, a pan-African banking group, has more than doubled its impairment losses on Ghana’s problematic Eurobonds to $183 million, highlighting the extent of risk that African lenders face when investing in state bonds.

The Lome-based lender also stated that it had removed around $39 million in interest income collected on the $13 billion Ghanaian Eurobonds from its 2023 financial statements due to continuing and yet-to-be-completed restructuring discussions with commercial bondholders.

The latest impairment losses represent a 144% increase from $75 million in 2022.

“As of year-end 2023, the total impairment charges on Government of Ghana Eurobonds are estimated at $183 million, a significant rise from $75 million in year-end 2022,” the lender says in its audited financial statement for 2023.

“Additionally, $26 million of modification losses were incurred on the GoG debt net of impairment charge releases due to the final settlement of the old bonds for the new bonds in February under the Domestic Debt Exchange Programme.

Ecobank operates in 35 African nations, including Kenya, Burundi, the Democratic Republic of the Congo, Ethiopia, Ghana, and Cote d’Ivoire. Moody’s Investor Service, a global rating organization, has previously urged banks against excessive lending to governments, warning that their credit profiles risk being lowered alongside those of governments facing liquidity constraints.

Zambia secured an agreement with its creditors in March to restructure $3.5 billion Eurobonds, bringing respite to Lusaka, which has been grappling with a long-running debt problem. As part of the agreement, bondholders agreed to extend payment dates, allowing Lusaka to continue receiving funding from a $1.3 billion International Monetary Fund (IMF) project.