Tomato Paste Giant’s Troubles Embody Nigeria’s Economic Woes

Nigeria is sub-Saharan Africa’s largest grower of tomatoes, but it is also the biggest importer of tomato paste.

This month, Nigeria’s largest tomato paste manufacturer, Erisco Foods, announced that it would close its 1,500-worker strong factory in Lagos’s industrial area Oregun, and move production to China. It will then import its finished products
back into Nigeria – a process that is cheaper than manufacturing locally, says Erisco CEO, Chief Eric Umeofia.

According to reports, the decision followed a 30-day ultimatum sent by Erisco’s management to the Nigerian government to completely ban the importation of tomato paste into the country. Umeofia has accused the Central Bank of Nigeria (CBN) of allowing importers access to foreign currency to import the finished product, despite tomato paste being on the CBN’s list of 41 items banned from accessing foreign exchange for importation
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