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.
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.
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.
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.
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.