SAN FRANCISCO October 07, (THEWILL) – Dangote Industries Limited has announced plans to stop the production of tomato paste owing to the harsh operating environment, which it noted, gives advantage to imported products. This is coming few days after Erisco Foods Limited threatened to shut down its tomato factory.
Recall that Erisco Foods Limited had indicated plans to shut down its tomato paste processing business in Nigeria owing to unfavourable operating climate, which will lead to loss of about 1,500 jobs.
Speaking on Thursday at the 2nd group meeting of the Zero Hunger Committee in Abuja, the Group Vice President of Dangote Industries Limited, Alhaji Sani Dangote stated that the company recently stopped tomato paste production, explaining that the company would not be able to pay farmers from whom they get the raw materials unless government did something urgently.
Although, the Central Bank of Nigeria, CBN, said it would not give dollars, Dangote noted that countries like China give their people huge support and waivers that allow them access to finance that they do not really feel the forex crunch being faced by their Nigerian competitors.
He expressed dissatisfaction over the delay on the part of the ministries and agencies involved to address the issue of tomato importation.
Dangote, who stated that “some companies have opened industries in Ghana and other free zones under the disguise of ECOWAS and are importing”, however expressed optimism that President Muhammadu Buhari would key into the issue and find a lasting solution.
