Seven Businesses Closed Due To A Weakening Economy
In the past ten years, a number of manufacturing enterprises have stopped operating in Nigeria due to escalating macroeconomic issues.
Numerous enterprises in the nation have suffered due to lingering foreign exchange shortages, inadequate electricity supplies, port congestion, numerous taxation, insecurity, and inadequate infrastructure, among other factors.
Nigerian industry is also hindered by high energy costs, a downturn in industrial output, and a sluggish market for its products.
In the past ten years, a number of manufacturing enterprises have left the industry, including:
Limited Mayor Biscuits Company
This year, the locally owned Mayor Biscuits Company Limited (MABISCO) in Ogun State, Nigeria, closed.
The company stated in a statement last week, "We want to sell MABISCO because we want to concentrate on our area of core competence of business," and that "to achieve that, we have to divest appropriately."
MABISCO, located in Agbara Industrial Zone, Ogun State, inaugurated more than 300 established distributors across the country in just seven years before closing its doors in March 2023.
Having been founded in 2016, MABISCO boasts cutting-edge technologies for making biscuits, with a total capacity of 3.5 tonnes per hour and access to the Shell LNG Gas terminal. According to the statement, the business features packing machines that can produce 350 packs each minute.
Industry Louis Carter Inc.
Louis Carter Industries ceased operations in 2017, which resulted in the re-entry of its forty-plus employees into an already congested labour market.
Louis Carter, which was founded in 1989 in Nnewi, Anambra State, struggled with issues such as rising manufacturing prices, the FX crunch, shifting policy, and excessive energy expenses.
The business made plastic basins, jugs, and other items.
Moak Business
Moak Enterprises, formerly one of the largest bottled/sachet water enterprises in Sango-Ota, Ogun State, closed its doors in 2021.
Many people drank "Meridian Waters," the company's product. Every month, Moak produced many trucks' worth of sachet water, which it distributed to retailers and wholesalers throughout Ogun State and other regions.
One of the businesses impacted by the foreign exchange crisis was Moak, which had to close because of rising raw material costs.
Tower Aluminum
Established in 1959, Tower Aluminium Aluminium provided pots, plates, spoons, roofing sheets, and other aluminium items to numerous houses throughout Nigeria and West Africa. 2020 saw the end of its activities.
SmithKline Glaxo Africa
GSK concluded that it could no longer sustain manufacturing and made the decision to close its Agbara, Ogun State, pharmaceuticals production facility in 2021. The business entered into a contract manufacturing agreement with another nearby firm, Fidson Healthcare.
GSK, a multinational pharmaceutical and biotechnology firm based in the United Kingdom, stated in August of this year that it will be leaving Nigeria after 51 years of existence. It stated that GSK UK Group has notified GlaxoSmithKline Consumer Nigeria Plc of its strategic intention to switch from using GSK local operating companies to commercialise its vaccines and prescription drugs in Nigeria to using a third-party direct distribution model for its pharmaceutical products.
The Technoflex Corporation
A participant in the industrial plastic and foam subsector was Technoflex. 2017 saw the closure of the business as a result of growing production expenses.
Evans Health Care
Debt caused Evans Medicals, formerly among Nigeria's biggest pharmaceutical companies, to lose its assets.
It made sure it obtained the World Health Organization's prequalification so it could participate in international contract rounds by upgrading its production facilities and acquiring machinery.
Due to bad debt, a court ordered in 2017 that First Bank and the now-defunct Skye Bank take over the medicine maker's assets. Evans' hopes were therefore dashed.
Up until financial issues arose, this company had operated at peak efficiency. Its Achilles heel proved to be the decision to borrow from the now-defunct Skye Bank in order to stay afloat.
After a while, the company was taken over by the Asset Management Corporation of Nigeria, but productivity plummeted sharply.
Surest Foam Limited, Mufex, Framan Industries, Deli Foods, Stone Industries, and MZM Continental are among the other enterprises that have closed.
