Syringe manufacturing company declares redundancy in Nigeria amidst chaotic business climate
Jubilee Syringe Manufacturing (JSM), once hailed as Africa’s leading syringe manufacturer, has announced a temporary halt in its operations in Nigeria’s South-south region of Awa, situated in the Onna Local Government Area of Akwa Ibom State.
The decision, revealed through an official memo addressed to its workforce, cited “unforeseen circumstances affecting our business operations” as the primary reason.
Established in 2017 and inaugurated by then-Vice President Yemi Osinbajo, the company had garnered a reputation as the largest syringe manufacturing venture in Africa.
The memo, signed by JSM’s Managing Director, Akin Oyediran, and made available to BusinessDay, confirmed the cessation of operations on December 31, 2022, emphasising the need for temporary measures to ensure the company’s long-term sustainability.
Titled “Temporary Redundancy – Service Not Needed Till Further Notice,” the memo expressed regret over the challenging decision, assuring employees that it wasn’t a reflection of individual performance.
In the memo, JSM highlighted the adverse business environment as the driving force behind the difficult steps, urging employees to return all company belongings.
The memo: “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.”
In an April 2023 interview, Oyediran had mentioned securing a $1 million credit facility, attributing the company’s growth to the favorable environment provided by the state government.
The initial plan included diversifying product offerings to include gloves, masks, and infusion sets.
Notably, JSM’s move aligns with a trend observed in multinational companies exiting Nigeria due to economic uncertainties.
Procter & Gamble (P&G), GlaxoSmithKline (GSK), Sanofi-Aventis, and Equinor are among those that ceased operations in the country last year, with some attributing challenges to the macroeconomic conditions and the impact of foreign exchange on the nation’s economy.
