08/01/2024
FACTS BEHIND JUBILEE SYRINGE FACTORY In ONNA, AKWA IBOM STATE.
On January 1, 2024, reports announcing that Africa's largest Syringe Manufacturing Company is shutting down its operations and leaving Nigeria broke the social media space. It was the Jubilee Syringe Manufacturing Limited located in Awa, Onna Local Government Area of Akwa Ibom State. The story dominated the media space like wildfire. Little did people know that the reports were not exactly what was painted in some quarters. More so, fifth columnist jumped in, thinking is was an opportunity to de-market the soaring profile of Governor Umo Eno; as well as pounce on his immediate predecessor, Mr Udom Emmanuel, whose economic policies birthed the factory more than five years ago.
The Jubilee Syringe Manufacturing Limited is a company, owned by a Turkish national, Onur Kumral and it is one of the several industries that was attracted to the state by the administration of the immediate past Governor Udom Emmanuel.
Speaking on the development, the Managing Director of the company, Akin Oyediran, said the shutdown was triggered by the harsh economic situation in the country.
“I can confirm to you that we've temporarily shut down our operations. We intend to open it back stronger and better.
“The economic issues have taken a toll on us as a company. We are working on different forms of financing and reorganisation. So, what we have decided to do is reorganise and then come back in the future,” Mr Oyediran told Premium Times.
Asked how long it would take the company to restore operations, Mr Oyediran said, “Well, I don’t like to predict time for anything. God makes things work. When the time comes you will hear from us that we are back again.”
On the specific challenges that the company is facing Mr Oyediran said, “Import duties are high on raw materials, dollars is high, cost of power is high. We are trying to do something to invest in different sources of power to make it better.”
When asked if he had sought the intervention of the Akwa Ibom State Government before closing the company, Mr Oyediran said the company is not state-owned and that the state government does not owe them any intervention, according to Premium Times report.
A separate statement by the Managing Director of the parent company, VKS Group of Companies, Onur Kumral dismissed the news report.
Onur Kumral in the statement opened up on the plans by Jubilee Syringe Manufacturing Limited to continue operations in the country. The company had in a memo to it's workers earlier said JSM was placing all positions on temporary redundancy effective January 1, 2024 emphasizing that the company was only on break. The memo to workers elicited diverse reactions from the public, sparking speculations on the Turkish Company exiting the country soon. That, Onur Kumral denied in a statement issued on behalf of the investors on January 3, 2024.
Kumral said: "When you set up a multimillion dollar factory such as JSM, it is important to take a critical review of its operations and that of the Management staff. JSM is a for-profit business and when expected targets are not met year after year, a shake-up is inevitable, which is what we have decided to do. We want to assure our esteemed customers that there is no need to panic. We are still in business as Jubilee Syringe Manufacturing Limited and we are poised to keep to our commitment to remain as the producer of the highest quality syringes in Nigeria."
On January 4, 2024 in a publication by The PUNCH, the Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, said companies exiting Nigeria had been stretched to “breaking point.”
The Punch quoted him as saying “The reason why companies are closing is evident. It is just a matter of resilience. When it gets to the breaking point, you will have to give up because of the employment environment.”
Those who believe that tarnishing the image of their Governor should be their own definition of politics, ought to know that in Akwa Ibom, politics has since paved the way for governance; and that Governor Eno has refused to be distracted from steady implementation of his ARISE Agenda.
It is therefore ridiculous to drag or blame the Akwa Ibom State Government for the unfortunate reality businesses are facing all over the country when they neither control monetary policies nor the exchange rate or inflation rate that negates industrial growth and productivity.
@ Charles Akpan is Special Assistant on Electronic Media to the Governor of Akwa Ibom State.
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