Chief Eric Umeofia, the CEO of Erisco Foods Limited, addressing members of the press on Wednesday, revealed plans to shut down the tomato paste processing business due to unfavorable operating challenges.
He explained that the cost of running the farm in Katsina together with the fresh tomato paste processing factory in Lagos had become expensive with the constant rising of the exchange rate.
Following the announcement, some employees protested the decision on Wednesday, carrying placards with various inscriptions that valled on the Federal Government to save their jobs.
Umeofia noted that if at the end of 30 days the situation does not improve, he will move his manufacturing firm out of Nigeria.
He said, “We cannot get forex to buy machinery. We run our big factory with forex sourced from the parallel market at the exchange rate of N450/dollar. The companies that get forex at the official exchange rate are those that import items included in the list of items not valid for forex.”
“We cannot continue this business we are running at a loss while importers continue to flood the markets with banned tomato paste and prevent our products from selling”, he further added.
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