FURTHER JOBS WILL BE LOST IN NIGERIA WHEN JUMIA FOOD LEAVES BY THE END OF DECEMBER

Not too long after the well-known international corporation Procter & Gamble declared its intention to withdraw from Nigeria, the well-known food delivery service Jumia Food declared that it would be departing Nigeria by the end of 2023.

This event adds to worries about how many Nigerians may lose their jobs as a result of multinational corporations fleeing Nigeria in large numbers.

As per a report published in Punch Newspaper, Jumia has decided to cease its food delivery service, Jumia Food, in all of the countries where it is now present, which includes Nigeria, Kenya, Morocco, the Ivory Coast, Tunisia, Uganda, and Algeria, by the end of December 2023.

Throughout its eleven operational nations, the company’s core priorities continue to be the Jumia Pay platform and its main physical goods business.

Despite making up 11% of Jumia’s Gross Merchandise Value in the first nine months of 2023, JumiaFood has struggled to turn a profit since its founding. This demonstrates the enormous scale at which Jumia Food operates, with food sales on JumiaFood totaling $64 million, or 11% of $581 million, between January and September of 2023. Nevertheless, Jumia does not profit from these sales.

Even though Jumia Food has had erratic results since its establishment, its remarkable 82% rise in 2021 over the previous year showed how dominant the company is in the meal delivery industry.

However, as a result of its choice to concentrate on profitable regions and lower consumer incentives in order to increase profitability, the company’s Quarterly Active Customers and Orders decreased dramatically in 2023.

The company claims that a large number of its employees will be moved to the primary physical products industry, which means that others would lose their jobs.

This news follows the announcement a few days ago by global behemoth Procter & Gamble that it would be leaving the nation.

Concerns about the large-scale departure of multinational corporations have persisted, and many economists have urged President Bola Tinubu to implement measures and plans to draw in additional foreign capital.