Companies that did not survive the harsh economic environment

chika ebuzor

December 20, 2016 10:14 AM

Corporate organisations were also not spared as they struggled to keep business afloat despite unfavourable forex policies by CBN.

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Nigeria’s economy is yet to recover from the recession that ‘suddenly’ hit everyone, leaving many wailing.

Corporate organisations were also not spared as they struggled to keep business afloat despite unfavourable forex policies by the Central Bank of Nigeria.

A lawmaker also jokingly cited the fact that Nigerians no longer live flamboyant lives as a result of the harsh economic conditions.

A lot of companies who could not sail in the boisterous waves of the recession, had to close shop, while others moved to neighbouring countries.

The recession left Nigerians with no other choice but to make ends meet, as some joined MMM, to earn extra income.

Here is a list of companies that closed shop due to the harsh economic condition in the country.

1. Aero Contractors

The airline’s Chief Executive Officer, Fola Akinkuotu announced the suspension of its operations on Thursday, September 1, 2016.

He said the airline's management made the decision as part of the strategic business realignment to reposition the airline and return it to the path of profitability, stressing that all workers, directly and indirectly, will proceed on indefinite leave of absence.

2. United Airlines

The American airline also stopped its flights to Nigeria on June 30, 2016. It cited the inability to collect the money it made from ticket sales and the unavailability of aviation fuel as some of its reasons.

3. Erisco Foods Limited

The indigenous tomato paste manufacturer reportedly moved to China to continue its business.

According to the company’s Chairman, Chief Eric Umeofia, the decision was taken because the Central Bank of Nigeria (CBN) refused to allocate forex to the company for importation of raw materials.

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Some other airlines that reportedly left Nigeria, include: Iberia, United Airlines and Air Gambia.

All hope is not lost though, as President Muhammadu Buhari has assured Nigeriansthat the 2017 budget will get the country out of the current economic crisis.

chika ebuzor