Three big companies – Aero Contractors, INNOSON Motors and First
Nation Airlines – have suspended their operations following the harsh
economic environment with thousands of workers dumped unto the labour
market.
The excruciating pangs of recession are being felt in all the
corners of Nigeria as more businesses are crumbling with those alive
barely surviving.
corners of Nigeria as more businesses are crumbling with those alive
barely surviving.
One after the other, as the economic environment becomes harsher, more businesses are dying.
From Aero Contractors to INNOSON Motors and First Nation Airlines,
they have joined the legion of companies that have suspended operations.
A few weeks back, First Nation Airlines sent its workers home, claiming that the atmosphere was unfavorable.
The Kayode Odukale-led airline which began operations in 2011, closed
shop a year later. Its three aircraft were repossessed in October
2012.
The airline reappeared in 2013, struggling over the years until
about two weeks ago when it again suspended its operations, claiming it
will reappear soon.
about two weeks ago when it again suspended its operations, claiming it
will reappear soon.
For Aero Contractors, the company founded in 1959, its fleet size
of 17, depleted to three – and yesterday (Wednesday, August 31), it
announced suspension of scheduled flights, with 1,700 staffers sent on
compulsory leave.
of 17, depleted to three – and yesterday (Wednesday, August 31), it
announced suspension of scheduled flights, with 1,700 staffers sent on
compulsory leave.
The airline sector is bedeviled by major problems, from sourcing
foreign exchange and escalating dollar rate to high cost of aviation
fuel. And many airlines are dying, with international businesses
relocating. Now, Nigeria is no longer the West African hub as GHANA is
the new bride.
foreign exchange and escalating dollar rate to high cost of aviation
fuel. And many airlines are dying, with international businesses
relocating. Now, Nigeria is no longer the West African hub as GHANA is
the new bride.
The beautiful tale of Innoson Vehicle Manufacturing owned by
Innocent Chukwuma is being splashed sour by recession. Sourcing foreign
exchange for the 30 percent components of its vehicles, from Japan,
China and Germany has been impossible. And production has stopped for
now.
Innocent Chukwuma is being splashed sour by recession. Sourcing foreign
exchange for the 30 percent components of its vehicles, from Japan,
China and Germany has been impossible. And production has stopped for
now.