Dangote Group launches Africa’s largest tomato processing facility in Nigeria | Food Business Africa

NIGERIA – Dangote Group has launched Africa’s largest tomato processing factory in northern Nigeria, a USD 20 million project that promises to reduce Nigeria’s reliance on imported tomatoes, create jobs, and support local agriculture.

After five years of development, this facility marks a major milestone in Nigeria’s efforts toward food security and economic self-sufficiency.

The need for a domestic tomato processing facility has become increasingly urgent as Nigeria consumes an estimated 2.3 million tons of tomato paste each year but relies heavily on imports, primarily from China.

Each year, Nigeria spends USD 360 million importing about 300,000 tons of tomato paste from abroad.

Aliko Dangote, president of the Dangote Group and Africa’s wealthiest man, saw an opportunity to change this dynamic.

“This factory not only meets domestic demand but sets a benchmark for what Nigerian agriculture can achieve,” Dangote said at the factory’s unveiling ceremony.

The new Dangote plant is expected to produce over 400,000 tons of tomato paste annually, which will drastically reduce Nigeria’s need for imports.

In addition, the Dangote Group has set up a N3 billion greenhouse nursery in Kano designed to produce between 300 and 350 million tons of hybrid tomato seedlings.

This greenhouse aims to supply farmers with high-quality seedlings, further enhancing the country’s tomato production capabilities.

One of the facility’s primary goals is to reduce the staggering post-harvest loss of tomatoes.

Nigerian farmers currently produce approximately 1.5 million tons of tomatoes each year, but around 900,000 tons—more than half—end up rotting due to a lack of storage, processing, and transport infrastructure.

This facility promises to change that reality, ensuring a larger portion of harvested tomatoes reach consumers.

The plant sources its raw tomatoes primarily from farmers in the Kadawa Valley, providing them a guaranteed price of USD 700 per ton.

This is a significant increase compared to the average USD 350 per ton that farmers typically earn, and it offers a dependable income stream.

By providing a secure market for farmers and encouraging local production, Dangote’s factory reduces the rural exodus and boosts the local economy.

Inflation and Accessibility

Tomatoes are a staple ingredient in Nigerian cuisine, but rising inflation has made fresh tomatoes increasingly costly.

According to the National Bureau of Statistics, inflation in Nigeria has reached the highest level in five years, pushing up the prices of many essential goods.

As tomato prices have surged by over 100 percent this year alone, households are turning to tomato paste and other substitutes like red bell peppers to make up for the shortfall.

While this processing plant offers a solution for the long term, some immediate relief for consumers might also be on the horizon.

The Federal Ministry of Agriculture and Food Security has launched a program to support tomato farmers in Edo State, providing seeds to over 500 smallholder farmers. Samuel Owoicho, Edo’s State Director, commented, “This initiative is part of a broader effort to stabilize tomato supply and bring down costs for consumers.”

A path to self-sufficiency

The Dangote Group’s investment in the tomato processing sector represents a significant step toward Nigerian agricultural self-sufficiency, setting an example for other African nations.

By leveraging domestic resources, Nigeria can limit reliance on imported products, create local jobs, and potentially lower food costs.

As Dangote highlighted, “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 USD 11.2 billion, a reflection of the entrepreneur’s focus on diversifying Nigeria’s economy through ventures in cement, flour, sugar, and now tomato processing.

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