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

Published

11 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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VenturesNow

Food prices drive second straight monthly hike in Nigeria’s inflation

Published

2 days ago

November 17, 2024

Ifeoluwa Dada

According to official statistics released on Friday, Nigeria’s inflation rate increased for the second consecutive month in October, rising to 33.88% in annual terms from 32.70% in September, mostly as a result of increasing food costs.

In an attempt to boost economic development and strengthen public finances, President Bola Tinubu devalued the naira and reduced subsidies, which caused inflation to spike in the second half of last year.

As the effects of the naira devaluation started to lessen in July of this year, a slew of hikes in the price of petroleum and devastating floods that destroyed crops once again exacerbated pricing pressures, making the greatest cost-of-living crisis in decades worse in Africa’s most populous country.

According to the National Bureau of Statistics, price increases for basics such as rice, maize, bread, potatoes, and cooking oil prompted food inflation to surge from 37.77% in October to 39.16% year over year.

This year, more than 1.5 million hectares of agriculture have been damaged by torrential rain and floods in 29 of Nigeria’s 36 states, leaving millions hungry and displacing large numbers of people.

In an effort to curb inflation, the central bank has raised interest rates five times this year. On November 26, it is expected to make its final rate decision of the year.

VenturesNow

MTN financial report reveals drop in group service revenue

Published

2 days ago

November 17, 2024

Ifeoluwa Dada

Due to operational difficulties in Sudan and the depreciation of the Nigerian naira, MTN Group, Africa’s largest telecom provider, announced on Thursday an 18.5% decline in service revenue for the third quarter that concluded on September 30.

With 288 million users in 17 African regions, MTN said that its group service revenue dropped from 156.3 billion rand ($6.99 billion) in the same quarter of the previous year to 127.4 billion rand.

Despite stating that “the naira was less volatile on a sequential basis in Q3 than in preceding quarters,” the business reported a 48.7% decline in MTN Nigeria’s income due to the currency’s depreciation.

Due to a stronger Ugandan shilling than the previous year, Uganda’s largest contributor, MTN South Africa (MTN SA), expanded by a meagre 3.3%.

Due to “subscriber registration regulations in Nigeria and a decline in users in Sudan, where the conflict has displaced millions of people,” the business reported that its subscriber base increased by 1.6% to 288 million.

Given the higher demand in Nigeria despite the legal obstacles, MTN plans to increase its capital expenditures, which it expects would total between 28 and 33 billion rand for the entire year.