The real reason Lagos based tomato paste manufacturer, Erisco Foods Limited, is in a quagmire is simply because the company is indebted to banks.
Some top central bank officials who don’t want their names mentioned say the owner, Chief Eric Umeofia, is using the dollar scarcity to shield the real problems facing the firm.
Recall the Lagos based tomato paste manufacturer had in October threatened to sack 1500 workers, close down plants and move his business outside the country if the dollar scarcity persists.
However further media reports insisted that the company’s claims were false, as the company has received N2 billion worth of forex in the last 2 years, with the latest coming in early this year. The forex was allocated to satisfy the company’s claim of ‘purchasing of a tomato processing machine’.
However, in November another media report claimed that the company had relocated its plant to China.
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Nigeria’s economy is facing its worst recession in 25 years as its GDP contracted by 2.2 percent in the nine months to 2016, according to the National Bureau of Statistics (NBS).