Manufacturers solicit support for backward integration

Mr. Nnamdi Nnodebe, the managing Director of Sonia Food Industries, has called on the federal government to grant indigenous manufacturers a window of 18 months during which they will backwardly integrate, but will during that time continue to access foreign exchange.

It could be recalled that under the new foreign exchange policy regime, 41 items have been barred from access to foreign exchange, necessary for the purchase of raw materials for processing and production of finished goods.

Nnodebe made the call during a factory tour of the Commissioner for Commerce and Industry, Ogun State, Otumba Bimbo Ashiru, while on a tour of some manufacturing firms in the state.

According to Nnodebe, “This development has become a challenge and has left manufacturers groaning under the weight of the current policy which has made it difficult for them to access raw materials. I am very confident, if given this allowance; it will work together for our good and for the economy, because Sonia Foods can complete a tomato factory farm, requisite for processing tomato concentrate, within two years.”

He urged the federal government to allow more time, to enable manufacturers achieve backward integration, stressing that Sonia Foods can complete a tomato factory farm, requisite for processing tomato concentrate, within 2 years.

In his speech, Frank Jacobs, President, Manufacturers Association of Nigeria (MAN), affirmed that 18 months window is what manufacturers of tomato needed to move the sector forward, saying that backward integration is paramount on the mind of tomato producers.

He said; “It would only be ideal to support them, actualise this ambition for the good of our economy, as you well know once this is actualised, jobs would be created and more importantly exports would start to happen because Nigeria has the potential to become leading exporter of concentrates, if given the prerequisite support.

“One way, we could make this happen, is partner the northern states,  since tomato cultivation thrives in the North where it finds favourable Climate, Governors in the North should endeavour to work together with credible Manufacturers like Sonia Foods, to speedily achieve backward integration.

“Nigeria is the second highest Producer of tomato in Africa and  13th in the world. Still, it spends 11.7billion naira a year, on importation of tomato paste”. “Sadly, about 750,000 of the tomatoes harvested in Nigeria, go to waste, as a result of poor Food Supply Chain (FSC) management; price instability, and the supply preference of farmers and middlemen for urban markets than processors due to low farm gate prices”.

Responding to the call, the Ogun State Government pledged its firm support especially for manufacturers within the state; saying the government will give the required support to enable them thrive by taking the manufacturers’ case to the federal ministries of Finance, Industry, Trade and Investment.

He said, “We have started work on the Shagamu road and some of the Federal Government roads as well.   Most of the roads we are doing in Ogun State are Federal Government roads but there are no Federal Government people. Our government is committed to creating the enabling environment through good road network because if they are producing all these goods and we don’t have good road network, the goods are dead on arrival. We are also building bridges in order to reduce the traffic.”