An indigenous firm, Erisco Foods, has said it may be forced
to shut down its production in the country due to its inability
to access foreign exchange from the Central Bank of Nigeria
for the procurement of machinery.
The company’s Chief Executive, Mr. Eric Umeofia, said it
would lay off 1,500 employees and quit Nigeria for a more
favourable business environment if things don’t change.
He said this in Lagos on Wednesday when some of the
company’s workers held a protest, lamenting plans by the
company to halt operations and lay off workers.
Umeofia said, “It is difficult for indigenous manufacturers to
access forex despite CBN’s promise to manufacturers that
they will allocate 60 per cent of foreign exchange to them.
“It is unbelievable that for over two months, no forex has
been allocated to Erisco Foods whereas the same forex is
allocated daily for the importation of finished goods.
“Products that can be easily produced locally like fish head,
tomato paste, razor blade are on the forex bids of the
various banks.”
He said that the high interest rates charged by commercial
banks, importation as well as policy constraints were
disincentives to manufacturer’s production in the country.
He said, “The prices of our products are high due to high cost
of production and this is in addition that we currently
generate our own power.
“We have lost over N3.5bn in our bid to industrialise Nigerian
economy and (are) ready to move our production section to
another country.”
Umeofia complained that the penchant of Nigerians for
imported goods and lack of clear policy against importation
of goods that could be manufactured locally were destroying
manufacturers.
He said, “We have stock of tomato paste worth over N6bn
now and not selling due to dumping and conspiracy against
indigenous manufacturers.
“We have complained publicly and officially to all the relevant
government agencies with loads of evidence, but regrettably
nothing has changed till date.
“We will be forced against our patriotic wish to relocate our
operations to a country where there is conducive and
favourable environment for manufacturing if within 30 days
from now nothing significant is done by the government to
address these issues.
“We will lay off 1,500 of our employees in the factory,
replicate our $150m investment in another country and from
there import tomato paste to Nigeria.”
Erisco Foods has a production capacity of 450,000 metric
tons of tomato paste annually for 22 brands with over 2,000
workers.
The company’s workers had in their hundreds held a peaceful
protest against the management’s plan to shut its production
worth about $150m.
The workers were seen carrying placards and chanting songs
around the factory premises in Oregun, Lagos.
The Area Sales Manager, Erisco Foods, Mr. Ayoola Oladayo,
urged the Federal Government to save their jobs by
intervening in the situation of the company.
He said, “We appeal to the government to save our jobs and
families.
“The unemployment rate is alarming and we do not want to
be classified as jobless in this harsh economic situation of
the country.
“About 2,000 of us will be affected in various factories if the
company shuts down.
“We urge the government to assist Erisco Foods and other
indigenous manufacturers to continue to contribute to the
country’s GDP.”
Mr. Obinna Ezeugwa, another worker, said that the country
needed active participation of the private sector to create
employment for the citizens for sustainable economic
development.

punchng.com/erisco-foods-threatens-fire-1500-staff-leave-nigeria/

Buhari is fulfilling his campaign promises, moves to employ more 1,500 workers - Zombie

I love spreading good news as this one hahahaha

The zoo is a dream killer,though i still don't like this Erisco guy because he has zero presence in the East

This man has been lamenting for months over this issue.
For whatever reason, only dangote has access to forex from the Cbn at ridiculously cheap rate.

Lalasticlala and mynd44

Buhari is an entrepreneur's nightmare, in 1984 he sent the packing and again in 2016 he is doing same

This is very mind Shattering. Do we even have a Responsive government in this Country at all.? What the Politicians are after is their Largesse .
#saveEriscoworkers

Carry on sir.

Mynd44

abokibuhari:
Mynd44

Mynd44, send this to the frontpage so that the concerned Nigerians can fashion out modalities fast.
It is even on the news now on Channels TV 10pm.

Its so so bad