CBN Supports Manufacturer with N2bn Grant

 

CBN Governor, Godwin Emefiele

By Nume Ekeghe

The Central Bank of Nigeria (CBN) through its Commercial Agriculture Credit Scheme (CACS) has granted EriscoFoods Limited N2 billion to expand its operations.

Interest on the loan is pegged at nine per cent and it is part of the central bank’s effort to support agricultural value chain.

Also, Erisco Foods has revealed that the loan would pave the way for it to meet the consumption needs of Nigerian as well as to export.

Special Adviser to the CBN Governor on Development Financing, Mr. Paul Nduka Eluhaiwe, disclosed this yesterday during a visit and inspection of the firm’s facility in Lagos.

He said: “The central bank has always had the focus on productivity and developing the economy. The bank supported this entrepreneur with N2 billion fund and we are here to see the level of activity. Also, the CBN recently discontinued access to foreign exchange of 41 items and tomato paste is one of them. We came here to see impact of that policy on local producers like this.

“This is because no matter what you do in the area of monetary policy, if you don't focus on productivity and financing the real sector activity, you would not be able to trash the issue of inflation, exchange rate and healthy foreign reserve. We are proud that Nigerians are beginning to have a rethink on how we can boost our productivity and improve our economy.”

He further said the CBN governor had decided to focus on core areas of agriculture in order to rebuild the foreign reserves, reduce the level of importation, create indigenous goods and enhance employment in the nation.
Eluhaiwe further added: “We want to encourage our banks to see reasons to encourage the real sector of the economy. This company had over 500 workers but now they have over 1500 workers.”

Also speaking at the event, the Chief Executive Officer,Erisco Foods Limited, Mr. Eric Umeofia, applauded the central bank and President Muhammadu Buhari for the policies and their effect on promoting manufacturing and strengthening the economy.

He said: “CBN has been so good to us and we have been able to assess up to N2 billion. Our target is simple, we want to turn Nigeria from biggest tomato paste importer to exporter of tomato paste from our country. And with president Buhari, we are sure we are getting there because the policies are right.”

On what he been able to achieve so far with the recent grant, he said: “We are already on 450,000 metric tons per year and Nigeria needs about 600,000 metric tons and our next target is to get one million metric tons per annum so we can export the excess.”

He further said: We appreciate the effort the current government is making in reviving our economy. We are determined to contribute our own quota in making sure our country which presently imports the most in Tomato paste to exporting our paste. Right now, we are the biggest in Africa and the fourth largest tomato paste plant and by February next year when our machines come, we would be the third largest in the world.”

Culled from: http://www.thisdaylive.com