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Recession forces top e-classified advert firm to close shop

by on January 19, 2017
 

Efritin (pronounced “everything”) has stopped further investments in Nigeria and has wound down operations, just 16 months after its official launch.

Investigation showed that high cost of data and operational demands forced the e-classified advert player to close shop even as the company’s staff are already vacating the head office located in Ikeja while office properties are being auctioned.

Nils Hammar, the Chief Executive Officer, Saltside Technologies and owners of Efritin, said the decision to close down the Nigerian office, is based on harsh economic conditions in the country.

He said that high cost of data is slowing down investments, disclosing their fears that current economic recession in the country may remain the same up to last quarter of 2017.

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Recently, the telecommunications service providers in Nigeria indicated plans to increase data subscription by almost 100 per cent, attributing same to a supposed directive by the Nigerian Communications Commission (NCC).

The operators have since been carpeted by the Senate, which stopped the plan of increasing a data plan of N1,000 for 1.5 gigabytes to cost N3,000 at N1,000 per 500 megabytes.

“We are reducing our investment in Nigeria. That effectively means we are reducing our staff; everybody has to go. But in terms of using the site, it will continue as before. By investment we mean the investment we made from the launch, it will be reduced.

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“Like I said earlier, data cost is too high and limits the growth potential of the market. If you look at the size of Nigeria and the online activities, there is a big discrepancy. Before e-commerce and classified ad sites will start recouping return on investments (RoI) there has to be drastic reduction in cost of data,” Hammar said.

Efritin is alleged to be involved in 10 court cases in Nigeria that would cost the company up to N20 million in fees among other things, according to a report by TechMoron, causing the central CEO to finally make the decision to close the company.

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