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Erisco Foods Limited says it did not take money from the Federal Government or the Central Bank of Nigeria (CBN) at any point in time for tomato concentrate.
Erisco Foods is reacting to the story published by BusinessDay on April 4, which said the company took N2 billion from the CBN for concentrate.
Eric Umeofia, chief executive officer and chairman of Erisco Foods, told BuisnessDay at his Lagos factory on Monday that he got money with the sole purpose of converting fresh and dry tomatoes into paste, which he is doing.
According to Umeofia, his company is genuinely processing tomato, and his factory is up and running.
He, however, adds that his factory is only operating at 10 percent capacity due to policy inconsistency and frustrations by the Ministry, Department and Agencies (MDAs) of government.
Umeofia says the Tomato Policy made last year is good for the industry but the system, made up of MDAs, is frustrating its implementation with impunity.
Umeofia says he cannot service his bank loans owing to lack of funds to get raw materials and run the factory, stressing that poor policy implementation and support given to importers by government officials are crippling the manufacturing sector.
He added that 70 percent of policies in the manufacturing sector are inconsistent and mean only death for local manufacturers.
“Government should decide whether they want tomato to be made-in-Nigeria or made in other countries. If they want indigenous manufacturers to shut down, then we are ready to shut down and join importers,” Umeofia says.
According to him, foreigners are deeply interested in the Nigerian economy and are ready to sabotage it because they want to perpetuate importation and kill local investors.
The Erisco chairman says he restrained himself from retrenching workers (but even added more staff) during recession and when times were tough in the country, but may be forced to retrench workers if things do not change.
“This system has made a contract with poverty. The truth is that President Muhammadu Buhari wants to chase out poverty but the MDAs have signed a contract with poverty,” he states.
He stresses that government agencies have refused to curb importation of cheap tomato pastes into Nigeria, thereby killing the factories built by people like him that have invested billions into local manufacturing in the country.
“Who will see cheap items from China and buy Nigerian products?” he asks.
“I have advised the government to support indigenous manufacturers to develop this country but all policies seem to be in favour of importation,” he added.
ODINAKA ANUDU
