COVER
Economy: Environment Worsens as Nine Big Coys Exit Nigeria
By Tony Obiechina, Abuja
The year 2023 proved to be one of the most challenging periods for businesses in Nigeria especially the manufacturing sector.
This could be attributed to various factors notably the harsh economic environment the manufacturing companies operated.
The situation no doubt has led to a good number of such companies leaving Nigeria’s shores to neighbouring countries blaming lack of reliable infrastructure, including power shortages, poor road networks, and limited access to ports and airports which made it difficult for them to move goods and raw materials around, in and out of the country.
The latest of such companies to close shop is Africa’s largest syringe firm, Jubilee Syringe Manufacturing (JSM) company in Awa, Onna Local Government Area of Akwa Ibom, which ended its operations last month.
The company owned by a Turkish national, Onur Kumral is one of the several industries attracted to the state by the administration of Governor Udom Emmanuel.
Inaugurated in 2017 by former Vice President Yemi Osinbajo, the company had stopped production many months ago, but it finally announced the end of operations on Dec. 31, 2023.
This is against the backdrop of many manufacturing companies that have left Nigeria’s shores to neighbouring countries blaming lack of reliable infrastructure, including power shortages, poor road networks and limited access to ports and airports which made it difficult for them to move goods and raw materials around, in and out of the country.
Other companies that had earlier exited Nigeria included Lazarpay, a website and crypto payment company, GlaxoSmithKline Consumer Nigeria, 54Gene, MABISCO Biscuit, Sanofi-Aventis Nigeria, among others.
In shutting down its operations, Jubilee Syringe Manufacturing (JSM) company in a memo addressed to all the workers of JSM, stated that all positions had been placed on temporary redundancy effective Jan. 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.
“It is with a heavy heart that 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.
“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.”
Lazarpay — In April, Lazerpay, a website and crypto payment company co-founded by 21-year-old Emmanuel Njoku announced it was shutting down operations after failing to raise funds to keep the company afloat. The company operated for only two years before calling it quits.
GlaxoSmithKline Consumer Nigeria – In August, GSK UK Group announced its intention to cease commercialisation of its prescription medicines and vaccines in Nigeria through the GSK local operating companies and transition to a third-party direct distribution mode.
The company had earlier complained that challenges accessing forex were disrupting its operations in Nigeria.
In surrendering to defeat, the company had to pivot to a third-party distribution model for its pharmaceutical products.
The company’s exit came as a shock to many who had grown accustomed to its products and further highlighted the extent of the nation’s macroeconomic woes on the business community.
54Gene – 54Gene shut down in Sept. last year bringing an end to its four-year existence in which it raised a whopping $45 million in three funding rounds.
The company’s death in Sep. culminated in a tumultuous year in 2022 where it had three CEOs, a series of complaints from staff and other legal issues.
MABISCO Biscuit- In October, Mayor Biscuits Company Limited popularly called MABISCO announced it is shutting down its multimillion-dollar plant in Agbara Industrial Estate, Ogun state.
According to a statement from the company’s management, they intend to sell the company and focus on other business areas.
The company started operations in 2016 and it was reported to have accumulated around 5percent share of the market in its seven-year history.
Sanofi-Aventis Nigeria Ltd – In November, the Nigerian arm of the multinational pharmaceutical company Sanofi Aventis in a similar fashion to GSK and P&G announced its ceasing operations in Nigeria and pivoting into a third-party distribution business model in a letter sent to its partners.
Although the company announced a third-party distributor would handle its products in Nigeria, it declined to name the distributor.
Equinor – Divestment from international oil majors in Nigeria’s petroleum industry has become common in recent times as Equinor Nigeria Energy Company (ENEC) announced in Nov. the sale of its 85percent stake in oil and gas lease OML 128, and a 20.21percent stake in the Agbami field, operated by Chevron to Nigerian owned Chappal Energies.
While the cost of the transaction was not disclosed, a statement from the company noted that its business in Nigeria had been profitable and the decision to sell syncs with its “strategy to focus on international oil and gas portfolio and core business areas”.
The sale of its assets brought an end to Equinox’s over three decades of presence in Nigeria dating back to 1992.
Bolt Food – Bolt Foods joined the train of companies exiting the Nigerian marketplace in Nov. when it announced its end of operations in Nigeria.
The company cited the need to optimize resource utilization and streamline overall efficiency as responsible for its latest strategic decision.
Procter & Gamble (P&G) – In early Dec., P&G announced the dissolution of ground operations in Nigeria and reverting to an import-only business model for its Nigerian market.
The company noted that Nigeria’s macroeconomic problems and forex challenges in Nigeria were responsible for its decision since it was difficult to operate as a dollar-denominated entity.
In June 2017, the company commissioned a $300 million state-of-the-art plant in Agbara, Ogun State but just a year after, there were reports the plant had shut down over economic issues as it had difficulty breaking even.
Jumia Foods – Not only Nigeria was a casualty of Jumia’s decision to pull the plug on its food delivery business in Africa, but across all countries on the continent where Jumia Food operates such as Kenya, Uganda, Morocco, Tunisia, Algeria, and Ivory Coast.
The company noted that the food delivery business in Africa was difficult, and it wanted to focus on physical goods where there was a path to profitability.
Commenting on the development, foremost economist, Professor Uche Uwaleke told Daily Asset in exclusive interview on Sunday that the exit of the companies from Nigeria has negative implications for job creation, economic growth and inflationary expectations.
Uwaleke who is Nigeria’s first Professor of Capital Market and the Director of the Institute of Capital Market Studies at the Nasarawa State University Keffi, blamed the exit of these companies majorly on persistent Forex challenges.
His words: “It goes without saying that the exit of companies from Nigeria against the backdrop of a drastic drop in foreign direct investments has negative implications for job creation, economic growth and even inflationary expectations.
“A major reason for the exit of these companies has been the persistent forex challenge. Government’s current efforts aimed at improving liquidity in the forex market via dollar loans should be seen for what it is – a stop gap measure.
“A sustainable solution requires ramping up oil production to take advantage of favourable crude oil price. It also involves developing other sources of forex including solid minerals and agriculture.
“Overall, the business environment in Nigeria remains unconducive and burdened by weak infrastructure such as epileptic power supply, bad roads and insecurity. There’s equally the issue of corruption, poor access to credit and multiple taxation.
“The Presidential Committee on Fiscal Policy and Tax Reforms is currently working on streamling taxes. It is hoped that the outcome of the committee’s work will help improve the tax environment.
“The fact remains that the president’s foreign trips to woo foreign investors can only bear fruits only when these challenges are dealt with and a business-friendly environment is in place.”
By Laide Akinboade, Abuja
As part of efforts to reposition the newspaper for optimum corporate performance, the management of Asset Newspapers Limited, Publishers of DAILY ASSET, has announced the appointment of David Torough as the Editor of the Abuja-based national daily.
A statement by the management said the appointments were part of the company’s new strategy to further penetrate the various states in the country and raise its readership and patronage.
“DAILY ASSET is widely acceptable across the country and to maintain our leadership position, we need to increase management presence, hence the need to create new Bureau offices in some locations outside Abuja and Lagos,” the statement quoted the Publisher/ Editor-in-Chief, Dr Cletus Akwaya to have said.
In a statement yesterday, Publisher and Editor-in-Chief of the fast-growing daily, Dr. Cletus Akwaya said the appointment was part of the new strategy to properly situate the paper for better productivity.
“DAILY ASSET has a commitment with the Nigerian people. We are determined to weather the storm and give Nigerian readers a Newspaper that satisfies their yearnings and reading pleasure and we can only do that with the right set of professionals,” the statement said.
Akwaya, a former Commissioner of Information from Benue State said the difficult times being faced by Nigerians posed a great challenge to the media as the people deserved credible information with which to make choices.
“We have a bond with the people, to offer credible information at all times in the best tradition of the Nigerian Press and on this scale of objectivity, truth and fairness, we pledge to remain steadfast no matter the challenges,” Akwaya was quoted to have said.
He said the newspaper will maiantin its daily print run and circulation to all states of the federation and urged advertisers to take advantage of the deep penetration of the Daily Asset brand to send their messages.
Torough, the new Editor has had a steady rise in the Newspaper in the last five years.
A graduate of Mass communication of the Benue State University, Makurdi, Torough joined the company in 2022 as Benue State Correspondent. He was spotted for his brilliance and redeployed to Abuja the following year and promoted to Deputy News Editor. He was subswuently named Deputy Editor of the paper, a position he held until the recent appointment.
Torough has attended several journalistic workshops and trainings to properly equip himself for the task ahead.
The statement also said the Management named Eze Okechukwu as Deputy Editor.
Before his elevation as Deputy Editor, Eze has been Deputy Politics Editor and DAILY ASSET Newspaper correspondent covering the Senate, having joined the organization in 2021.
Born on March 10, 1975, Eze holds a Masters Degree in Mass Communication from the Enugu State University of Science and Technology.
Eze began his journalism career with Daily Star, Enugu and later worked with Daily Trust Newspaper, Abuja as sports reporter.
Aside from his journalistic excellence, he has a great deal of passion for sports.
From Ngutor Dekera, Kaduna and Aliyu Askira, Kano
Northern governors and traditional rulers yesterday called for the suspension of mining activities across the region for six months, blaming illegal mining for worsening insecurity in many states.The resolution was contained in a communiqué issued after a joint meeting of the Northern States Governors’ Forum and the Northern Traditional Rulers’ Council held at the Sir Kashim Ibrahim House, Kaduna.
The meeting, chaired by the Gombe State Governor and NSGF Chairman, Muhammadu Yahaya, had in attendance the 19 northern governors and chairmen of the 19 states’ traditional councils. The Forum expressed concern over the escalating violence in parts of the North, including the killings and abductions recently recorded in Kebbi, Kwara, Kogi, Niger, Sokoto, Jigawa and Kano states, as well as renewed Boko Haram attacks in Borno and Yobe.“The Forum extends its deepest condolences and solidarity to the governments and good people of the affected states,” the communiqué said, noting that the attacks on schoolchildren and other citizens had become “unacceptable tragedies” that required urgent collective action.It commended President Bola Tinubu for what it described as the Federal Government’s “firm response” to recent abductions and insurgency threats, especially the rescue of some abducted pupils.The governors also saluted security agencies for their sacrifices on the frontlines.“We resolved to renew our support for every step taken by the President and Commander-in-Chief to take the fight to insurgents’ enclaves in order to end the criminality,” the Forum stated.A major highlight of the meeting was the North’s renewed push for the establishment of state police, with governors and traditional rulers insisting that decentralised policing had become inevitable.“The Forum reaffirms its wholehearted support and commitment to the establishment of state police,” the communiqué added, urging federal and state lawmakers from the region to “expedite action for its actualisation.”On illegal mining, the governors said criminal mining networks were fuelling violence and providing resources for armed groups.As a corrective measure, they asked Tinubu to direct the Minister of Solid Minerals to impose a six-month suspension of mining activities in order to allow for a full audit and revalidation of licences.“The Forum observed that illegal mining has become a major contributory factor to the security crises in Northern Nigeria. “We strongly recommend a suspension of mining exploration for six months to allow proper audit and to arrest the menace of artisanal illegal mining,” it said.To strengthen the fight against insecurity, the governors also announced the creation of a regional Security Trust Fund.Under the proposed arrangement, each state and its local governments will contribute ₦1bn monthly, to be deducted at source under an agreed framework.They said the fund would help provide sustainable financing for joint operations, intelligence-driven interventions and coordinated security responses across the region.At the end of the meeting, the Forum reaffirmed its commitment to unity and collective responsibility.“Only through unity, peer review and cooperation can we overcome the pressing challenges before us,” it declared.The Forum agreed to reconvene on a date to be announced.Meanwhile, Nigeria’s worsening security crisis took a grim turn on Monday as bandits launched fresh attacks in Kano State, abducting 25 villagers, even as the Federal Government raced to secure the release of more than 300 Catholic school children kidnapped in Niger State.In the early hours of Monday, armed bandits invaded Unguwar Tsamiya—popularly called Dabawa—in Shanono Local Government Area of Kano State, whisking away nine men and two women after shooting into the air and assaulting residents. The attackers also rustled two cows.A resident lamented the community’s helplessness: “We cannot do otherwise; most of us cannot leave because we have nowhere to go. This is our place, our land and everything is here.”The assault came less than 24 hours after a similar attack on Yan Kamaye in Tsanyawa LGA, a community along the volatile Katsina border.In Niger State, National Security Adviser Nuhu Ribadu has assured distraught families of St. Mary’s Co-Education School, Kontagora that the more than 300 students and staff abducted on November 21 will return home “soon.” Ribadu, who led a high-level federal delegation to the school on Monday, said the abductees are safe, though he offered no specifics on their location or the status of rescue operations.According to Daniel Atori, spokesman for the Catholic bishop overseeing the school, the NSA reassured officials: “The children are where they are and will come back safely.”The St. Mary’s attack is part of a worrying resurgence of mass kidnappings reminiscent of the 2014 Chibok schoolgirls’ abduction. Security analysts warn that banditry has evolved into a “structured, profit-seeking industry,” with hundreds of Nigerians abducted in November alone.The Kontagora school abduction occurred the same week 25 girls were kidnapped in Kebbi State—victims who authorities say have since been rescued through “non-kinetic” means. About 50 of the St. Mary’s hostages have also managed to escape.Ribadu’s delegation, which included the Minister of Humanitarian Affairs and the Director-General of the Department of State Services (DSS), reaffirmed the government’s commitment to securing the freedom of all abducted citizens.As communities from Kano to Niger continue to bear the brunt of these violent incursions, the escalating spate of kidnappings underscores the urgent national demand for a more decisive and coordinated security response.
By David Torough, Abuja
The Economic and Financial Crimes Commission (EFCC) said former Attorney‑General of the Federation and Minister of Justice, Abubakar Malami, will face a team of interrogators at its office daily throughout December.A credible source in the EFCC said on Monday that the daily appearance was part of an ongoing investigation into the whereabouts of an alleged 490 million dollars Abacha loot secured through a Mutual Legal Assistance (MLAT) request.
The source said that Malami, who was summoned for interrogation by the EFCC on Saturday, was barred from leaving Nigeria for the next one month.According to the source, one of the conditions for his release on Saturday was that he should report daily to the EFCC Headquarters in Abuja for further interrogation.The source said Malami would have to appear daily at the anti-graft office due to the volume of the investigation and the seriousness of the charges against him.”We seized his passport, it is the normal routine during investigation, but he has to report at the EFCC headquarters in Abuja every day for the next month.”He will be reporting for further investigation throughout December.”He will be reporting every day, starting from Dec. 1st to Dec. 31st.He will appear before the team of investigators for the entire month of December.”He will be reporting to EFCC for investigation for the period because of the volume of the investigation and the seriousness of the charges against him,” the source added.According to the source, a fact sheet on the former minister revealed that Malami had several issues to clarify with the EFCC within the coming weeks.“We have asked him to explain the whereabouts of the $490 million Abacha loot secured through MLAT.“We didn’t say he stole money, but he should account for the loot. This is one of the issues he will clarify to our investigators.”The commission cited the large volume of documents he must review and the need for extensive interviews as reasons for seizing his passport.The source said EFCC would not engage in a war of words but would release its findings after a thorough investigation.Malami, in a statement by his media aide, Mohammed Doka, on Monday in Abuja, however, described the EFCC investigation as a political witch‑hunt.He confirmed he honored an EFCC invitation on Nov. 28, describing the engagement as fruitful and expressing confidence that the probe would vindicate him.Malami described the EFCC’s allegations as baseless, illogical and devoid of substance, insisting they collapse under factual scrutiny.
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