By Chioma Umeha
There are fears that the
Nigeria’s N19 billion tomato paste manufacturing industry may collapse in the
second quarter of 2017, if President Muhammadu Buhari continues to back the
harsh forex policy of the Central Bank of Nigeria (CBN).
Giving the warning over
the imminent collapse of the
industry were the value-chain operators in the tomato paste business.
The operators under the
auspices of Union of Tomato Paste Manufacturers in Nigeria stressed that the
once vibrant tomato industry might go extinct in 2017 if the CBN does not amend
its policy on forex to exclude triple concentrate tomato paste from the scope
of the 41 items under the restricted list.
The operators claimed
that the CBN reluctance to amend its forex policy has boosted the importation
of tomato paste into the country at the peril of local manufacturers.
It will be recalled that
Erisco Foods Limited, a former local tomato paste manufacturer in Nigeria, had
shut down operations in the country, citing similar conditions.
Nigeria’s Union of
Tomato Paste Manufacturers further lamented that the ban on triple concentrate
tomato paste used as raw material by local manufacturers has left the local
industry in a dilapidating condition.
The union views were
contained in a press statement signed by the union’s spokesman, Mr. Nnamdi
Nnodebe.
Nnodebe who is also the
Managing Director of Sonia Foods Industries Limited, one of the stakeholders in
the production of tomato paste variants, confirmed that the total investment in
the packing manufacturing sector of tomato paste is about N19 billion.
He lamented: “The
economy cannot afford to lose such a huge industry that provides millions of
direct and indirect jobs for Nigerians. The fact is this industry that grew to
be the 13th largest in the world and second largest in Africa might die before
the second quarter of next year if the ban on Forex is not lifted.”
Nnodebe further said the
unavailability of tomato paste triple concentrate for the industry will grind
production to a halt; meaning millions of people who depend on the industry for
their livelihood will lose their jobs or have reduced income.
His words: “The impact
of this on the economy will be massive and negative as consumer behaviour will
also be influenced leading to low purchase of goods in all sectors, not just
tomato.”
He also reasoned that
the tomato industry workers also patronise electronics shops, banks, petrol
stations, they pay taxes among others, but they will no longer be able to
fulfill all these.
The Managing Director of
Sonia Foods Industries Limited said: “It makes better economics to import the
raw materials that will enable production, grow the economy and keep jobs
rather than importing the finished products or frustrating efforts to get the
raw materials, thereby rendering millions jobless which might further kill the
economy.
“The local packing
industry can also form the hub for exports to the hinterland countries as there
are adequate local capacities to more than cater to the domestic requirement.
Using the ECOWAS benefits, this can be a huge foreign exchange earner for the
country today and in the near future.
“Through the growth of
the tomato industry Nigeria can compete with China instead of buying the
finished goods from them,” he said.
“It is important for the
government to recognize that the packing industry is an essential component of
the tomato paste value chain and without this sector there can be no link
between the farmer and the final consumer,” Nnodebe added.
