The Founder of Erisco Foods Limited, Eric Umeofia has alleged that bank officials demand a compromise payment of N50 or N70 to a dollar from importers or manufacturers before the allocation of forex, adding that this is not reflected in the bank transaction.
Umeofia accused the Central Bank of Nigeria (CBN) of encouraging forex racketeering as manufacturers find it difficult to access dollars in banks.
He made these allegations during a media interview following his company’s arrest of a customer who gave a negative review on Facebook about one of the company’s products.
Forex Racketeering
During the interview, Mr. Eric while expressing his displeasure from the lady’s comments, disclosed the challenges his company has faced doing business in Nigeria. He said:
- “We would not allow our efforts of over 40 years to be destroyed by a syndicate of importers that have been fighting our products since the beginning.”
He expressed his frustrations on how he has been supporting his business from his foreign investments. He then narrated how difficult it has been for his business to have access to dollars while accusing CBN led by its then Governor, Godwin Emefiele, of racketeering.
- “For the past 5 years, I haven’t gotten credit in Nigeria, no loan. For the past 3 years, I haven’t gotten one dollar in foreign exchange.
- They didn’t give me dollars and I don’t want to compromise, that’s why they don’t like me. Central Bank is hearing me, if they gave me one dollar call me bastard.”
Explaining how the racketeering works, he said:
- “Then, money (dollars) was N420, N410, N440, if you want to get like $1 million, you are going to part with N40, N50, N70 that would not reflect, and your bank would not know.
- You just pay them (CBN), and you get it. I said I don’t want to do that in my own country. Big racketeering and everybody knows. Ask big manufacturers, they know.”
More on Forex Challenges
Nairametrics reported that the Manufacturers Association of Nigeria (MAN) had tasked the administration of President Bola Tinubu to prevail on the CBN to ensure productive sectors of the economy are given priority in the allocation of foreign exchange.
The DG of MAN, Mr Segun Ajayi-Kadir appealed to the President to ask the CBN to give priority to the productive sectors of the economy, particularly to manufacturers in the allocation of foreign exchange enabling them to import raw materials, spares and machinery that cannot be locally sourced.
Back Story
Erisco Foods had faced public backlash due to the arrest of a lady known as Chioma Egodi Jnr who on September 17th expressed her dissatisfaction on Facebook after using ‘Nagiko Tomato Mix’ – one of the company’s products.
According to the lady, the tomato mix she bought had ‘too much sugar’ which she claimed was unhealthy.
Erisco Foods Ltd, thereafter, issued a statement in which it faulted the claim and threatened legal action against the lady.
He is absolutely correct. I worked with a pharma manufacturing company and my MD always complained of staff of CBN always asking for kickbacks before he could get USD.
Let the government continue to ridicule itself looking for FDIs when it’s not ready to make an example of the many bad eggs within.
.
The rot is not limited to CBN. All institutions of state are messy. As for CBN, my clients accounts have been unapproved for years simply because they are ethical and wouldn’t compromise.
The situation is dire but we are all going down together.
The business environment is not friendly at all.