Few days after Erisco Foods Limited threatened to close down its tomato processing factory, Dangote Industries Limited yesterday uncovered plans to stop tomato paste production as a result of the brutal working environment that offers favorable position to imported production.
Group Vice President of Dangote Industries Limited, Alhaji Sani Dangote, uncovered that the group as of late stopped tomato
paste production in view of the cruel working environment that offers favorable position to imported items.
He likewise said the organization would not have the capacity to pay farmers from whom they get the raw materials unless government accomplished something urgently.
Despite the fact that, the Central Bank of Nigeria (CBN) said it would not give dollars, Dangote noticed that nations like China give their kin tremendous backing and waivers that permit them access to fund that they don't generally feel the forex crunch being confronted by their Nigerian rivals.
Dangote who spoke at the second group meeting of the Zero Hunger Committee in Abuja, communicated disappointment over the postponement with respect to the services and offices required to address the issue of tomato importation.
The Chairman of Nigerian AgricBusiness Group (NABG) demanded that the main way out was for government to set up an obvious arrangement on tomato importation and local production, focusing on: "We have been talking for as long as one year and up till now there is no obvious bearing where the government is heading."
He further said that the forex strategy being executed by the CBN has not ceased importers from making benefit from importation rather it is the local ventures that are recording losses.
As indicated by him, forex was not the issue but rather setting up a strategy that would confine the importation of tomato.
"We are not searching for forex. We are just saying that administration ought to set up an approach where we are producing tomato concentrate to those businesses that are into packaging; we are not into retail packaging," he said.
Thus, that around 30 of those retail companies in Nigeria that are importing would stop and purchase from us and repackage into littler sachets, tins and so on.
"In the event that we are discussing importers and we are discussing local producers; it is extremely unlikely we can have a shared view since they are looking at 100 percent import and we are looking at 100 per cent in local production.
Dangote, who expressed that "a few organizations have opened businesses in Ghana and other free zones under the camouflage of ECOWAS and are importing", was in any case, hopeful that President Muhammadu Buhari would enter into the issue and find a lasting solution.
Review that Erisco Foods Limited indicated plans to close down its tomato paste processing business in Nigeria owing to unfavorable working atmosphere which will prompt loss of around 1,500 employments.
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