Dangote Group unveils Africa’s Largest Tomato Processing Facility in Nigeria

The Dangote Group has inaugurated Africa’s largest tomato processing facility in northern Nigeria, a US$20 million initiative aimed at reducing the country’s dependence on imported tomatoes, generating employment opportunities, and promoting local agriculture.

After five years of development, the facility represents a significant achievement in Nigeria’s pursuit of food security and economic independence. The establishment of a domestic tomato processing plant is increasingly vital as Nigeria consumes an estimated 2.3 million tons of tomato paste annually but relies heavily on imports, primarily from China.

Currently, Nigeria spends approximately US$360 million each year importing 300,000 tons of tomato paste. Aliko Dangote, president of Dangote Group and Africa’s wealthiest individual, recognized an opportunity to address this dependency.

“This facility not only fulfills domestic demand but also sets a new standard for what Nigerian agriculture can accomplish,” said Dangote during the plant’s unveiling.

The new facility is expected to produce over 400,000 tons of tomato paste annually, significantly reducing Nigeria’s reliance on imports. Additionally, Dangote Group has established a N3 billion (US$1.77 million) greenhouse nursery in Kano, which will produce between 300 and 350 million hybrid tomato seedlings.

This initiative aims to supply farmers with high-quality seedlings, further bolstering the nation’s tomato production capacity.

A key focus of the facility is to mitigate the considerable post-harvest loss of tomatoes. Nigerian farmers currently produce around 1.5 million tons of tomatoes annually, but more than half – approximately 900,000 tons – are lost due to insufficient storage, processing, and transport infrastructure.

This facility aims to address that challenge, ensuring that a larger portion of harvested tomatoes reaches consumers.

The plant will source its raw tomatoes primarily from farmers in the Kadawa Valley, offering them a guaranteed price of US$700 per ton, which represents a substantial increase from the typical US$350 per ton. This initiative provides farmers with a stable income stream and supports local economic development by ensuring a reliable market for their produce.

The rising cost of fresh tomatoes, driven by inflation, has made them increasingly unaffordable for Nigerian households. According to the National Bureau of Statistics, inflation in Nigeria has reached a five-year high, leading to significant price increases for many essential goods.

With tomato prices soaring by more than 100 percent this year alone, consumers are turning to alternatives such as tomato paste and red bell peppers.

While the processing plant offers a long-term solution, immediate support for farmers is also underway. The Federal Ministry of Agriculture and Food Security has launched a program to assist tomato farmers in Edo State, providing seeds to over 500 smallholder farmers.

Samuel Owoicho, the State Director for Edo, emphasized that this initiative is part of a broader effort to stabilize tomato supply and reduce costs for consumers.

The Dangote Group’s investment in the tomato processing industry represents a significant step towards agricultural self-sufficiency in Nigeria, serving as a model for other African countries. By utilizing domestic resources, Nigeria can reduce its reliance on imports, create local jobs, and potentially decrease food costs.

As Dangote stated, “Investing in our own production is not just a business strategy; it’s a commitment to Nigeria’s future.”

As of October 2024, Dangote’s net worth is estimated at US$11.2 billion, reflecting his strategic focus on diversifying Nigeria’s economy through ventures in cement, flour, sugar, and now tomato processing.