‘We’ll open back up’ — syringe factory shuts down temporarily over FX challenges

Jubilee Syringe Manufacturing (JSM) has temporarily ceased its operations, attributing the decision to foreign exchange (FX) challenges.

Akin Oyediran, managing director of JSM, confirmed the development to TheCable on Thursday.

“We all know what the problem is in Nigeria. Foreign exchange, import duties, interest rate, this is basically why the company is closing down,” he said.

However, Oyediran said the company is only shutting down temporarily to source for funding, adding that “once we get the financing, we’ll open back up”.

The company, based in Awa, Onna local government area of Akwa Ibom, 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.

JSM 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,” the memo partly reads.

“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.”

With the closure, the syringe manufacturer joins the growing list of pharmaceutical companies exiting Nigeria.

In December, Procter & Gamble (P&G) announced plans to solely import its products as well as close its on-ground presence in Africa’s biggest economy.

Following suit was Sanofi-Aventis Nigeria Limited, a French-owned company, adopting a third-party model for the distribution of its product.

Prior to these exits, GlaxoSmithKline (GSK) Consumer Nigeria Plc announced plans to end operations and opted for a third-party distribution model.