Dangote and his firms lands in deeper financial crisis

A senior executive with Dangote Group, Edwin Devakumar, has explained why the conglomerate had to shut down its tomato processing factory.

In an interview with Reuters, Devakumar said Dangote group has been cutting down its operations due to lack of foreign exchange.

“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.

Abdulladir Kaita, managing director of the company, disclosed that the plant would be returning to production in February 2017.

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Kaita said that the company had to suspend production located at Kadawa, Kura local government area of Kano state

He also said most of the tomato farms in about five states were affected by a pest that destroyed all the tomato species.

“We expect that tomato farmers would have produced enough for the company to process.

“This is why we have decided to resume production in February,” he said.

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According to him, 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.

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