Forex Crisis Erisco foods to shut down 9 months after First Lady inaugurated tomato plant

Erisco foods will be laying off 1500 workers from his fold as the tomato paste company plan to relocate to China.

  • Published:
24/7 Live - Subscribe to the Pulse Newsletter!

Barely nine months after Wife of the President, Hajiya Aisha Buhari, inaugurated a N4 billion tomato paste procesing plant, Erisco foods has unveiled plans to shutdown business.

According to a report by Vanguard Newspaper, over 1500 employees of the company will lose their jobs should the company complete the process of winding up its tomatoes paste factory in the country.

It was further reported that the company intends to move to China to continue its business while exporting finished tomato paste back to Nigeria.

Speaking on the reason for the decision, the Company’s President, Chief Eric Umeofia, said the decision is as a result of the refusal of the Central Bank to allocate FOREX to the company for importation of raw materials.

Umeofia further said another reason is an unveiled plot of collaboration between some government agencies and importers from Asia to flood the market with substandard paste.

He said: “It is saddening and painful that we have started the process of relocating our factory out of the country, thereby forcing us against our wish to create jobs in foreign lands due to the evil and wicked desires of unpatriotic Nigerians who frustrate every effort we have made to create jobs in the country and earn foreign exchange.”

ALSO READ: FG loses N25b daily to fake food importation – Erisco boss

Umeofia further said “CBN refused to give us approval till date to use our own deposit of USD460, 000.00 generated from our foreign operations, but the same CBN approves Nigeria’s scarce FOREX to other companies to continue to import sub standards products into the country.

He further noted that the total completion of the relocation move will last six months and he's saddened that he will have to create jobs for people in other countries rather than Nigeria.