Connect with us

Business

Dollar Shortage: Erisco to Suspend Operations

Published

on

Erisco
  • Dollar Shortage: Erisco to Suspend Operations
  • Threatens to fire 1,500 workers

About 1,500 employees of a Lagos-based tomato paste manufacturer, Erisco Foods Limited, are set to lose their jobs as the firm has shut down its $150m plant in Lagos.

The Chief Executive Officer of Erisco Foods Limited, Chief Eric Umeofia, disclosed this on Wednesday in Lagos, attributing this to scarcity of foreign exchange.

Following the decision to close down the business, some of the employees of the firm protested the action on Wednesday. They carried placards with various inscriptions calling on the Federal Government to save their jobs.

Umeofia said he decided to shut down for one month over what he described as frustration in sourcing foreign exchange from the Central Bank of Nigeria.

According to him, 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 because we are running at a loss while importers continue to flood our markets with banned tomato paste and prevent our products from selling.”

Umeofia said about 1,500 of the company’s 2,000 workers in the Lagos factory would have to go.

Some of the workers, who spoke to our correspondent, said the decision to close the factory would spell doom for them with an indication that their jobs were on the line.

“This factory is my only hope and if it is shut down permanently, it will mess up my home and generate a lot of stigma for me and my family,” Obinna Ezeugwa said.

Another worker, Ayoola Oladayo, remarked that 5,000 families would suffer if Umeofia made good his threat to relocate his factory outside Nigeria.

The Assistant Marketing Manager, Kelvin Onyia, a father of four, said, “Many of us who are bread winners would not know what to do if the owner moves the factory out of Nigeria.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Business

Tanker Drivers Suspend Strike as NNPC and DSS Intervene

Published

on

NUPENG called off strike

NARTO Called Off Strike as NNPC and DSS Intervene

The Nigerian Association of Road Transport Owners (NARTO) on Tuesday said it has called off its two-day warning strike that began on Tuesday.

On Monday NARTO had directed all its members to halt operations following the new policy of the federal government that restricted truck above 45,000 litres from plying Nigerian road.

The National President of the association, Yusuf Othman, said the directive was sudden with little to no time for affected tanker drivers to make adjustments.

However, on Tuesday in Abuja, Othman said the association had to call off the strike following the intervention of the Nigerian National Petroleum Corporation and the Department of State Services.

He said “Yesterday (Monday), following an emergency meeting of the National Executive Council of our association, it was resolved that transport owners would park their trucks from 22nd to 23rd September, 2020.

“This was in protest of the Federal Government’s decision to ban all trucks of over 45,000 litres capacity from loading petroleum products from all depots throughout the country.”

He added, “However, following the intervention of the Group Managing Director of NNPC and the Director-General of the DSS, we are hereby directing all our members to resume operation nationwide.

“This is a directive that we revert to status quo until January 2021 to allow for wider consultation.”

NARTO president said the association now await peaceful resolution and hope that the agreed time would be enough for affected members to re-engineer their trucks in accordance with the 45,000 litres directive.

Continue Reading

Business

FG to Boost Foreign Revenue Through Methylformate Production

Published

on

Naira Dollar Exchange Rate

FG to Enhance Methylformate Production

The Federal Government has started unlocking domestic capacity to up foreign revenue generation and deepen domestic productions through various means including enhancing the production of methylformate.

The Minister of Environment, Dr. Mohammad Abubakar, disclosed this during the inauguration of Systems House of Vitapur Nigeria Limited on Tuesday in Ikeja.

He said the Federal Government was committed to improving the nation’s foreign reserves by unlocking domestic capacity in methylformate productions.

Speaking further he said domestic capacity in methylformate would help in phasing out ozone depleting substances and mitigate climate change, adding that such technological innovation also has potential to enhance Nigeria’s foreign revenue generation, among others.

According to him, such domestic production have advantages, including availability of ozone-friendly and low global potential blowing agents in the production of rigid foam, generation of forex for the country from export of methylformate and forex savings from local production, building of local capacity in the formulation of methylformate-based systems and consequently generation of employment and wealth.

The methylformate systems will serve as source of raw material to ice making machine manufacturers. The project will lead to increased capacity utilisation in enterprises that will be using the methylformate being produced by Vitapur,” Abubakar said.

He reiterated the commitment of the government towards creating enabling environment that will enhance the global competitiveness of manufacturers, especially through fiscal incentives.

Continue Reading

Business

N-Power Beneficiaries Receives N13.3bn in Kwara State

Published

on

NPower Beneficiaries in Kwara States Received N13.3bn

The National Social Investment Programme (NSIP) has said N-power beneficiaries in Kwara State received a total sum of N13.3 billion.

The amount was paid to 15,246 beneficiaries from both batches A and B that exited the programme.

Hajia Bashirah Abdulrazaq, the Focal Person of the programme in the state, said batch A beneficiaries were paid N7.4 billion for the 42 months period they were engaged.

She said batch B beneficiaries who were engaged for about 24 months received a total sum of N5.7 billion.

Non-graduates received the sum of N10,000 every month and were engaged for a period of 24 months with a total sum of over N24 million spent,” she added.

Abdulrazaq also said Kwara state government had created a replica of the empowerment programme, codenamed K-power, in order to support beneficiaries after exiting the N-power programme.

She said around 10,000 of N-power beneficiaries benefited from “trader moni’ programme in the state with over N1.3 billion disbursed to them.

She, however, said the people are not willing to repay the loan.

Said she: “Poor masses are not ready to repay the loan after collection because of the attitude of Nigerian to anything from the government thinking it is national cake. Also, those that disbursed the money do not have records of beneficiaries like phone numbers and addresses. Thus, making it difficult to track them for repayment.

“The programme is designed to provide soft loans to boost small scale businesses in the markets which Vice President Yemi Osinbajo flagged off sometime last year to support women with N10,000 as soft loans to
be paid back and then enjoy the next stage of N50,000.

“Unfortunately, many beneficiaries didn’t pay back or the channel for payment was not identified, therefore, beneficiaries could not fulfill their pledges. Though, the component is going through restructuring to
seeing it achieves its objectives,” she said.

Continue Reading

Trending