Crown Agents, one of the UK’s most established development contractors, is on the brink of collapse, putting its Nigerian employees and hundreds of employees around the world at risk of layoffs, global development platform Devex has announced.
The organization’s imminent closure is caused by a severe financial crisis, which has resulted in employees’ July salaries being cut in half, Devex said in a report. About 350 employees in 20 countries around the world could be affected.
In Nigeria, Crown Agents boasts over 200 off-grid solar power systems installed in schools and health centres in Lagos and Kaduna states, contributing to the treatment of more than 14 million neglected tropical diseases. The company has also distributed more than 10 million bed nets to combat 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,” Nkiru Anonyuo, country director for Nigeria, said in a statement.
The organization also provides third-party testing services for pharmacists to carry out testing of health-related products, teaching materials, and equipment.
Crown Agents’ financial difficulties date back to when the company was separated from the British government in 1997 and inherited a historic pension deficit that is now worth more than 103 billion naira (£50 million), almost a year’s income.
The not-for-profit company blamed its difficulties on pension obligations as well as major cuts in development aid by the British government and a budget deficit that has run into millions of pounds per year.
At the same time, several major development companies have opened offices in London in recent years, bringing competition from across the pond to Crown Agent’s 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.
