otunbakolawole:
Erisco, please go, and don't threaten us. Am not surprised, he thought he could curry Buhari's favour through the wife like crooks got to Jonathan through Patience. The economic climate in Nigeria is very hard, everyone knows that, if other businesses go through the banks, some even source from black marketers, why should Erisco get special access? Already he has increased his price, to cover for the margin, not that he has increased his workers pay, now he threatens to go out and import like those he has been condemning, only in Nigeria.

You reason like a slow...poke..,receive sen....se

mare23ayo:
MadamExcellency blueto SharkTank

His he saying he can't convince the CBN governor who is from the East to release forex? this is a manufacturing company for crying out loud.... The CBN is Autonomous for fund release so I believe there's more to it that we don't know

Don't mention me again

MadamExcellency:
As I always say, Buhari is not business friendly. The CBN is keeping the forex for Dangote, notwithstanding that some of his business interests in other African countries is sapping our scarce forex.

Forget about the soundbites, Mr President's standing order to CBN cannot be overrule hence Erisco should approach a commercial bank for a higher exchange rate and consequently transfers the cost to the consumers.

i feel for this company, how would they be able to access FOREX when EMEFIELE "our trial and error governor" just doesn't seem to know that the economics of Nigeria is far beyond him and the president who should know better feels he is doing what no man can do

blueto:
this is one of the reasons why the economy was plunged into recession, the govt is just so irrational ,indolent and insensitive. The worst thing is that Buhari is lying to investors that Nigeria is now very safe for doing business and that investors are falling over themselves to come and invest in Nigeria even when it is glaring that investors are pulling out of the economy due to the harsh business environment. Buhari should reshuffle his cabinet members and engage seasoned and veteran economists, and also he should not always restrict the decision making to himself.

You missed it at the end of your post. People keep saying Buhari should sack his non performing Ministers, reshuffle his cabinet. You guys are all wrong. Buhari should be the one to be sacked. Buhari is their major problem. Buhari is their major headache. Buhari is a hindrance.

Is there no provision in our constitution for in competent government to leave. Hmmm god please forgive us for what we have brought on ourselves show us Mercy.

BrutalJab:
Brethren, let's blame GEJ.

hahaha.......why?

easzypeaszy:
dey push u n u go

? ? ?

SharkTank:

Don't mention me again

Hey Kid

This is ungodly

wreckerMcbeth, Ryabcool check my comment here https://www.nairaland.com/3390710/recession-resign-within-next-21#49952302 and you I see that I admitted that Buhari is the one that is impeding the progress of the national economy.

MadamExcellency:
As I always say, Buhari is not business friendly. The CBN is keeping the forex for Dangote, notwithstanding that some of his business interests in other African countries is sapping our scarce forex.

Forget about the soundbites, Mr President's standing order to CBN cannot be overrule hence Erisco should approach a commercial bank for a higher exchange rate and consequently transfers the cost to the consumers.

As usual, we leave the real issues and begin to play this boring PMB vs. GEJ political game.

When have Nigerian banks ever been friendly to SME's be it under OBJ, Year Adua, GEJ or PMB? You are right about one thing though, they would all rather give the forex to the likes of Dangote, Otedola and co. The commercial banks have not helped this gentleman either. Four banks would rather come together to finance Dangote.

Why do our banks continue to play lip service to financing SME's? This is the real issue, not all this PMB-GEJ arguments.

Can these machinery be manufactured locally. We have so many local fabricators. Steel companies etc.

Maybe they should ban dollar totally so we can hear word. Everyday importation? We just don't want to change.


The people that built this machineries and stuff what did they use? Else foreign companies that need our trade should settle for the naira.

The CBN obviously not doing it job right and should approve forex disbursements. Banks won't give out PTAs yet will declare as part of forex disbursements on the national dailies. We need more transparency on all banks forex usage.

Chukzyfcb:

well it's not as easy as you pointed out, erisco products are slightly higher than most of the imported tomato brands we have, he is even managing to stay afloat with a higher price margin, if he decides to obtain forex exchange from the banks at a higher rate, it will further dampen his woes he has already accumulated.

The highlighted quote is in itself confusing. You have stock worth N6b which you are yet to sell, yet you are looking for forex to buy more machinery. To do what? Produce more when you haven't sold old stock?

I think the most important thing right now for this company is finding a way to sell the present goods in stock and ploughing that back into the business to keep it afloat until we get out of this mess. Any expansion drive may have to wait for now.

dabossman:


The highlighted quote is in itself confusing. You have stock worth N6b which you are yet to sell, yet you are looking for forex to buy more machinery. To do what? Produce more when you haven't sold old stock?

I think the most important thing right now for this company is finding a way to sell the present goods in stock and ploughing that back into the business to keep it afloat until we get out of this mess. Any expansion drive may have to wait for now.

lool exactly, he is just looking for a way to vent his anger. He has been into tomato production even before buharis wife commissioned the factory. He just can't gain market share, I don't think his marketing team is that aggressive tho. You are right when you say he needs to sell his old stock, but the problem he will have is pricing especially in this time of recession

Chukzyfcb:

lool exactly, he is just looking for a way to vent his anger. He has been into tomato production even before buharis wife commissioned the factory. He just can't gain market share, I don't think his marketing team is that aggressive tho. You are right when you say he needs to sell his old stock, but the problem he will have is pricing especially in this time of recession

Yeah. I feel sorry for him though. It's a tough time for business owners. He needs to restrategize for this difficult times and keep his company afloat till the tide turns. I'm not sure relocating is the answer right now. That in itself is serious investment.

BrutalJab:
Brethren, let's blame GEJ.

blame buhari for his economic policies n not Jonathan. Did Jonathan implement TSA or did he stop forex. These are few bad policies that landed us to recession in this country. When u com to the savings aspect, u then ask yourself what happened to the recovered loots

Ok i feel like its time for me to come in with some much needed clarifications..

We are in the manufacturing business (medicine), and we have been hit hard, probably lost around $500,000 this year..
Let me explain:


#1. First of all, NO MACHINERY can be made locally. We use high end machines that cost $100,000's that are only made in China & India.. Has Nigeria even managed to make a TV, talkless of heavy duty machines..

#2. Raw materials for our pharmaceutical production are 100% imported. To make ampicillin capsule you need ampicillin powder. To make amoxicillin capsule, you need amoxicillin powder, etc. These powders are not made in Nigeria. Heck, there are only a few of these factories in the whole world. The factory to make ampicillin would cost tens of millions of dollars, and you wouldnt be able to compete with Chinese prices.

#3. Let me get to how manufacturers source forex. For Machine,raw material imports, you either get funds by :

a. BILL FOR COLLECTION (Where the supplier ships the machine/raw materials to us, and we submit documents to CBN to pay them dollars),
b. LETTER OF CREDIT (Where CBN deducts or naira, and send dollars to the supplier's bank in advance.)

#4. We have dozens of BILLS FOR COLLECTIONS pending across all banks in Nigeria. Basically what this means is that for example a supplier sent a container of ampicillin powder, value of say $250,000, we used the goods and submitted the document to our bank.
Five months later the bank is yet to give us any dollar. We now had to resort to buying black market at N450 for goods that have been used and sold thinking that we were going to get dollar @ 310.

Let me explain this again, lets say for ampicillin capsule you need 1kg of powder per packet. In january you use

1kg of powder X $30/kg = $30. (Multiply this by 310 and you get N9,300). You go ahead and sell this packet in the market for N12,000 for a nice profit of almost N3000. BUT WAIT!!

The official funds never come from your bank, your supplier needs payment so he can continue shipping, otherwise your business closes down. You now go to black market and buy the $30 (@ N450 rate = 13,500). You have just lost N1,500.

Now I just gave you a small example. Multiply this 1kg by 20,000 tons, and now you can see how manufacturers have lost money and closed down. We also had to fire dozens of people just to keep costs down.

What people dont know is that the dollars are NOT enough.. For every $1,000 needed by manufacturers, the CBN has only $100 to give.

Want to know the worst thing? That sample ampicillin packet example I gave you is being imported by some people straight from China. They are importing the finished product, and finished products have no duty.

So basically if you import the raw material as a manufacturer, some of the materials have duty up to 40%, meanwhile if you just have it made in China you bring it in duty free.

Want to know the funniest thing? Many of these importers have connections/bribe top bank officials so that same ampicillin you sold for N13,000 is being sold by N10,000 because they got their funds @ 310.

Please ask any questions if you guys have, but this country has some of the worst policies I've ever seen.

The fact that manufacturers have to buy black market, coupled with the fact its much cheaper to just import the finished product is ridiculous.. More companies are going to close.. We are making essential medicines yet we are almost closing, I can only imagine how other industries are doing..

blueto:
this is one of the reasons why the economy was plunged into recession, the govt is just so irrational ,indolent and insensitive. The worst thing is that Buhari is lying to investors that Nigeria is now very safe for doing business and that investors are falling over themselves to come and invest in Nigeria even when it is glaring that investors are pulling out of the economy due to the harsh business environment. Buhari should reshuffle his cabinet members and engage seasoned and veteran economists, and also he should not always restrict the decision making to himself.

That beast only fought for power to destroy the business of the igbos and empower his people and it's affecting everybody. If he does not repent from his wicked ways, he WILL DIE A SHAMEFUL AND MISERABLE DEATH. WICKED MONSTER WHO PURPOSELY PLUNGED THE COUNTRY INTO RECESSION. Who is he even trying to deceive? Are you telling me that if GEJ were still the president that the dollar will be this bad? Wicked demon in human skin, continue oppressing God's people, soon you will go and answer your query in hell where you rightly belong. Beast and devil incarnate

Erisco Food always claim he uses fresh tomato to produce his tomato paste....hmmm
This man imports tomato concentrate and puts it in tins for people to buy.
Why does he need forex if his tomato is truly locally sourced? He claims he needs forex to buy machinery but he is not saying the truth,which machinery if i may ask? Do you buy machinery everyday? Are the machines not already in place and producing?

Besides,the Buhari led administration should do something fast to fix this economy....it's killing

The Bubu of all nations.

dabossman:


The highlighted quote is in itself confusing. You have stock worth N6b which you are yet to sell, yet you are looking for forex to buy more machinery. To do what? Produce more when you haven't sold old stock?

I think the most important thing right now for this company is finding a way to sell the present goods in stock and ploughing that back into the business to keep it afloat until we get out of this mess. Any expansion drive may have to wait for now.

Don't mind the man,truth is he needs forex to import tomato concentrates but doesn't want to say it .He's been lying to Nigerians that his tomato is locally sourced....now we know the truth.

FagsamPHP:
Buhari has run this country aground, the bomboclat idiotic President has no solution to this country's problem...... More people getting unemployed day by day cos of the Bomboclat called Buhari's policies

His followers are even more dumb and idiotic. That's the most enthralling aspect of the whole saga.

CandyDiamond:

You reason like a slow...poke..,receive sen....se

you that have sense well done. Erisco himself knows the truth, but Nigerians are just too easy to deceive. Man says he has goods worth N6 billion in warehouse, that is not his problem but the dollar he hasn't gotten to produce more unsold goods is abi? His Solution, move factory to Ghana abi?

SharkTank:
If you listen to this man's speeches, you could tell he is super passionate about his work. But the pull him down syndrome of the northern oligarchy sucks

Zoological republic
Hv u heard of it before Or you fink it's a joke

And Boooohari is encouraging made in Nigeria products.

Meanwhile Foreign investors are falling over themselves to come into the country na.
Why is this man talking like dis?

Can he not climb over the foreigners as they are falling all over the place ni?

Truly wisdom is not of age, this gap toothed almajiri is a true example

MrTruth4real:

So u ain feeling it now, well there is no damage, its just unavailability of dollars, if dollars becomes available again all this story will end.

Am ain't home based bro, but I do follow up all the happenings down there..




back to the matter

are you saying if it's religious matters they'll be told there's shortage of dollars...pls respond to this....

blueto:
this is one of the reasons why the economy was plunged into recession, the govt is just so irrational ,indolent and insensitive. The worst thing is that Buhari is lying to investors that Nigeria is now very safe for doing business and that investors are falling over themselves to come and invest in Nigeria even when it is glaring that investors are pulling out of the economy due to the harsh business environment. Buhari should reshuffle his cabinet members and engage seasoned and veteran economists, and also he should not always restrict the decision making to himself.

what does buhari know about making decisions in 2016??...

This isn't the military era or 1984..

gen2briz:
Must they threaten before leaving.. ..

yes they have to...for the mumu government to sit up and to ensure ngigie with his mumu head does not come running around them asking why they sacked workers...

Very insane administration..

timeman:
Why do ignoramus heap every blame on Buhari? Knowingfully well that emefiele is the dumbest & worst thing ever to happen to this government. His monetary policies & supervisory mechanism is mediocre & disorganised at best. Good News; the REPS has passed a vote of no confidence on him. Wailers are not wailing louder.. Stupid wailers
Obey the truth!

emefiele is only following directions from the top if you must know..

ideology:
CBN governor should be relieved of his job .

I have said this several times.

The manufacturing sector is the worst hit in this poor economic policy induced recession.

Am very disappointed at Emefile

eme is not the problem..your president is...

Seun360:


He deserves to be impeached. He clearly has nothing to offer. Its a shame that i voted for him.

you voted for him??..