Nigerian staff members and hundreds of others worldwide risk layoffs as Crown Agents, one of the United Kingdom’s most established development contractors, faces collapse, according to Devex, a global development platform.
The organisation’s imminent shutdown is fuelled by severe financial drought that has seen staff’s pay for July slashed by half, Devex said in a report.
About 350 staff in 20 countries across the world could be affected.
In Nigeria, Crown Agents boasts of over 200 off-grid solar systems installed for schools and healthcare centres in Lagos and Kaduna states, aiding treatment for neglected tropical diseases to over 14 million people.
It has also distributed over 10 million bed nets to fight malaria.
“We have been working with partners in Nigeria for over 100 years and continue to work with the government of Nigeria at both the federal and state levels. We provide market-leading training and capacity building services for both the private and public sector,’ according to a statement credited to Nkiru Anonyuo, country director for Nigeria.
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The organisation also engages in third-party inspection work where its pharmacists undertake inspections on health-related products as well as educational items and equipment.
Crown Agents’ financial difficulties go back to when it was spun out of the U.K. government in 1997 which saw it inherit a historic pensions deficit that currently stands at over N103 billion (£50 million), almost a year’s revenue.
Apart from the pension burden, the not-for-profit company also blamed its woes on significant cuts to foreign assistance by the British government, a shortfall that amounted to millions of pounds a year.
At the same time, several big development firms have opened London offices in recent years, bringing the competition from across the pond directly to Crown Agents’ doorstep.
“The directors have been working as hard as they can over the last few months to attract new investment and funding for the business but unfortunately, while there was much support for the work we do, it recently became clear that actual commitments to provide the cash required going forward were not forthcoming,” the company said in a statement.
