20161007

Dangote Too Is Threatening To Stop Tomato Paste Production

Few days after Erisco Foods Limited threatened to shut down its tomato factory, Dangote Industries Limited has also disclosed plans to stop tomato paste production because of the harsh operating environment that gives advantage to imported production.

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 cried out that the company would not be able to pay farmers from whom they get raw materials unless government did something urgently.

Although, the Central Bank of Nigeria 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. 

He insisted that the way out was for government to put in place a clear policy on tomato importation and local production, saying: “We have been talking for the past one year and up till now there is no clear cut direction where the government is heading.”

Dangote, stated that “some companies have opened industries in Ghana and other free zones under the disguise of ECOWAS and are importing.”

Recall that Erisco Foods 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.