ECONOMIC RECESSION : DANGOTE THREATENS TO STOP TOMATO PASTE PRODUCTION

Nigerian business mogul, Aliko Dangote has
been severely hit by the current economic
recession as his tomato business has been put
at risk due to alleged unfavourable government
policies.
Few days after Erisco Foods Limited threatened
to shut down its tomato factory, Dangote
Industries Limited yesterday disclosed plans to
stop tomato paste production because of the
harsh operating environment that gives
advantage to imported production according to
the Daily Sun.
The closure of Dangote’s tomato business is
expected to further compound the economic
woes of Nigeria as about 4.5 million Nigerians
have lost their jobs under the administration of
President Muhammadu Buhari.
Group Vice President of Dangote Industries
Limited, Alhaji Sani Dangote disclosed that the
group recently stopped tomato paste production
because of the harsh operating environment that
gives advantage to imported products.
He also said 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.
Dangote who spoke at the 2nd group meeting of
the Zero Hunger Committee in Abuja, expressed
dissatisfaction over the delay on the part of the
ministries and agencies involved to address the
issue of tomato importation. The Chairman of
Nigerian AgricBusiness Group (NABG) insisted
that the only way out was for government to put
in place a clear cut policy on tomato importation
and local production, stressing: “We have bee n
talking for the past one year and up till now
there is no clear cut direction where the
government is heading.”
He further said that the forex policy being
implemented by the CBN has not stopped
importers from making profit from importation
instead it is the local industries that are
recording losses.
According to him, forex was not the problem but
establishing a policy that would restrict the
importation of tomato.
“We are not looking for forex. We are only saying
that government should put up a policy where we
are producing tomato concentrate to those
industries that are into packaging; we are not
into retail packaging,” he said.
“So, that about 30 of those retail companies in
Nigeria that are importing would stop and buy
from us and repackage into smaller sachets, tins
and so on.
“If we are talking about importers and we are
talking about local producers; there is no way we
can have a common ground because they are
looking at 100 per cent import and we are
looking at 100 per cent local production.”




Sourced and edited by DANIEL IKECHUKWU EKWUNIFE (08066298797)