The recent commissioning of Rich-Giko tomato factory by industrialist and boss of Erisco Bonpet Group of Companies represents a commendable milestone in Nigeria’s agricultural value chain, writes Correspondent, SAM NWOKORO.
There is one major problem afflicting the Nigerian economy to which the government would eternally remain grateful if local investors help her resolve faster. It is the agricultural value chain. It has for long been the aspiration of successive governments to reduce as much as possible, if not totally stop, the huge capital flight that takes place in the economy through the importation of items like rice, seafood, tomato puree, sugar and wheat.
In the 1980s and 1990s, there were some indigenous packaged foods. One common brand was Vegfru tomatoes puree produced up North. Even with its not-so fantastic quality, it held some part of the consumer market until the early 1990s when it just fizzled out of the market. Since then, import binge of canned tomatoes has resurfaced as it used to be in the 1980s oil boom-induced import binge.
But very soon, a new brand of canned tomato puree called Ric-Giko will take over the Nigerian market, courtesy of the efforts of indigenous industrialist, Chief Eric Umeofia, whose multi-billion naira ultra-modern factory was commissioned by President Muhammadu Buhari early January.
Ric-Giko tomatoes is a new entrant into Nigeria’s consumer market for it has been around, in sachet and various other packages.
In a couple of days, the main Ric-Giko processed tomato will flood every nook and cranny of Nigerian open markets and malls. According to sources, the company is currently recruiting for the project.
An industrialist/patriot
It is not just a gesture of camaraderie that President Buhari found Umeofia a willing partner in the philosophy of backward integration in the agriculture sector. This explains why the President found the Igbo traditional title holder a comfortable person to discuss Nigeria’s economy with and showcase him in the international business fora as a shining example of Nigeria’s stock of reputable entrepreneurs who could translate investors’ funds to profits in the Nigerian economy, especially in the agriculture sector.
The President had taken Umeofia alongside the likes of Aliko Dangote, Tony Elumelu, Jim Ovia and the very fine stock of Nigeria’s game-changers and wealth-creators during his February trip to United States of America.
To show the premium the President pays to industrialists in the mould of Umeofia, no sooner the delegation came back to Nigeria than the President came to commission the Erisco Foods Processing Company’s ultra-modern tomato plant in Lagos.
The plant, according to reports, has the capacity to process 200,000 metric tonnes of tomato fruits per annum, saving the country huge foreign exchange. To most Nigerians, in and out of government, that is the most important benefit of the Ric-Giko tomato plant at moments like this.
According to a start-up entrepreneur who distributes food stuff in Mushin, Sikirat Olubode, “I don’t see much difference between Ric-Giko and other pastes we sell here in this market. It is just like De Rica or any other brand, whether it is produced abroad (or locally). But I was surprised when I discovered it is processed here.”
Ric-Giko brand, which comes in various sizes of 70g, 200g, 400g, 800g and 2kg packages is set to dominate the consumer shop list, as the Central bank of Nigeria (CBN) forex restriction takes its course in disciplining the abuse of foreign exchange sourcing in the country.
According to a brand journalist, who spoke on condition of anonymity, “the Ric-Giko brand is set to upturn the paste market. Industrialist, Chief Umeofia, the promoter of the project, would surely reap from his long campaigns against dumping of substandard consumer products in the country, and the commissioning of his tomato factory is just coinciding with the CBN forex restriction policy which will help those involved in agro backward integration to expand and create jobs in the economy. These are the kinds of people that deserve to source foreign exchange from CBN directly.”
Other qualities demonstrated by the Igbo chief that encourage local entrepreneurs include his concern for the growth of local industries. He opened the eyes of the government on the extent to which importation of substandard products had dealt with local financial system and even the health and safety of Nigerian consumers.
He lectured Nigerian government in 2012 thus: “We are losing so much depending on foreign products, and that is not the way to develop, because some of the foods imported into the country are very harmful to the health of our citizens and our regulatory agencies like National Agency for Food and Drug Administration and Control (NAFDAC) and Nigeria Customs Service (NCS) are not doing enough to check what comes in.
“Influx of substandard goods into the country is inimical to the growth of the manufacturing sector of the economy. Fiscal policy should be put in place to discourage the importation of these goods and services. High tariffs should be (introduced) to discourage this. Importation does not only kill local manufacturing but creates jobs for those economies, especially China where our traders import these substandard goods.”
A good man and his philosophy
Umeofia’s frame of mind and concern for the health of compatriots could be discerned from his rejection to be co-opted into the cabal of substandard product importers. He had at various times lambasted the cabal for sabotaging the growth of local industrialisation because, according to him, they do these things “without taking into consideration the health implication of these products on Nigerians”.
He once confessed: “The truth is that I have been invited severally by these group of individuals to be part of their scheme. But I would rather stop production and close down this company than engage in importation of any product that could have adverse effect on the wellbeing of Nigerians.
“Do you know that after I had said no to their offer, they went ahead to insist that I at least stop making comments about the poor quality of the products they bring in and give them freedom to make money. But I can’t keep quiet, especially when I know that we can produce better versions of these products here in Nigeria.”
It is the man’s spirit of neighbourliness and demonstration of good virtues that compelled the National Youth Service Corps (NYSC) secretariat to honour him in August 2015 for employing a youth corps member whose arm was damaged in a motor accident.
Growth curve of a corporate pacesetter
Chief Umeofia, in his early 50s, hails from Amichi, Anambra State. He schooled at St. Andrew Primary School, Amichi, and has, for much part of his life, been combining education and business, attending many post-graduate tutorial trainings in modern business. He started apprenticeship in textiles with Lagos-based Messrs De G & Sons in 1970. He moved to Kano in 1976 for apprenticeship as automobile spare parts dealer with De Nna Mercedes Benz Agency. In 1978, he took became private venture entrepreneur, dealing in auto spare parts.
Destiny took him back to Lagos in 1991, and in 1994 he founded Tropical Fire Prevention Services with Erisco Bonpet automotive fire extinguisher, becoming probably the first Nigerian to assemble such in Nigeria.
In 1997, he berthed in the global business arena and today his tentacles in some sub-Saharan African countries have contributed in posting Nigeria in global business arena as a worthy place to scout for business partners.
Some of his footprints include Meena Hotels and General Merchants with Erisco Corp, Liberia, Monrovia; Automotive Engineering Industries, Luanda, Angola; and OTC Commerico Industries, Luanda. His Nigerian flagships include Erisco Group of Companies, Tropical Fire Services, C.O. Erisco Nigeria Limited and the rave-making Erisco Foods Processing Industries.
Many agree that the industrialist, who has won many awards for his efforts at creating jobs at a time most of his contemporaries are winding up or relocating elsewhere, deserves all the support of not just the country’s political leaders today.
The seasoned businessman with over 27 years of unblemished business experience is a man of vision, well-focused, energetic and pragmatic.
