6 Local Firms In Nigeria That Folded In 2023

In the challenging economic climate that has gripped Nigeria, six local companies have ceased operations within the period of 10 months, up to December 2023.

Lingering issues such as foreign exchange scarcity, inadequate power supply, port congestion, multiple taxation, insecurity, and deficient infrastructure have taken a toll on businesses, particularly in the manufacturing sector.

Amidst the closure of local companies, several foreign operators also announced their plans to exit Africa’s largest economies last year, including GlaxoSmithKline Consumer Nigeria, Equinor, Sanofi, Bolt Food, and Procter & Gamble.

The tough business environment has not spared indigenous companies, highlighting the need for support from the government.

In a release on Thursday, BusinessDay listed no fewer than six domestic firms that closed shop in the last 10 months. See the list below:

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1. *Mayor Biscuits Company Limited (MABISCO):*
– Ceased operations in March.
– Established in 2016, with a manufacturing capacity of 3.5 tonnes per hour and over 300 distributors nationwide.

2. *54Gene:*
– A genomics startup that shut down in September.
– Existed for four years, raising $45 million in three funding rounds.

3. *Lazarpay:*
– A web3 and crypto payment company that closed in April after two years due to a lack of funds.

4. *Jubilee Syringe Manufacturing Company:*
– Inaugurated in 2017, it ceased operations in December, citing unforeseen circumstances affecting business operations.

5. *DropX:*
– A delivery-oriented startup founded in 2021, closed its operations in December amid challenging economic conditions for startups.

6. *Okadabooks:*
– A pioneer in digital publishing and bookselling, shut down in November after 10 years, citing insurmountable challenges in the rough macroeconomic conditions.

As Nigeria grapples with economic challenges, the closure of these companies raises concerns about the broader impact on local businesses and the need for measures to support their resilience and growth.