Dangote group cuts down operation due to lack of forex

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Edwin Devakumar, a senior executive with Dangote Group, says the the Dangote group has been cutting down its operations across board due to lack of necessary foreign exchange.

In an interview with Reuters, Devakumar, said the conglomerate had to shut down its tomato processing factory due to lack of foreign exchange for raw material import.

“Where the foreign exchange is not available, we are cutting down our operations. For example … we had a tomato-based processing plant, we have shut it down,” Devakumar said.

According to the managing director of the company, Abdulladir Kaita, the company had to suspend production when most of the tomato farms in about five states were affected by a pest that destroyed all the tomato species.

Kaita said that the plant which is located Kadawa, Kura local government area of Kano state, would resume production in February 2017v.

“We expect that tomato farmers would have produced enough for the company to process, hence our decision to resume production in February,” he said.

He further said that many tomato farmers at the Kadawa, Kura, Garun-Malam and Hadeja-Jama’are irrigation sites are expected to produce enough for the company to process, TheCable reports.

“We deliberately decided to resume production in February because we don’t want to create scarcity of the commodity,” Kaita said.

 

Posted by Juliet Ekwebelam

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