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Dangote Group Launches Africa’s Largest $20 million Tomato Processing Plant to Boost Nigeria’s Agriculture, Cut Imports

Olusola Blessing by Olusola Blessing
November 7, 2024
in Business, News
0
Dangote Group Launches Africa's Largest $20 million Tomato Processing Plant to Boost Nigeria’s Agriculture, Cut Imports
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The Dangote Group has inaugurated Africa’s largest tomato processing plant in northern Nigeria, a $20 million project aimed at reducing Nigeria’s heavy reliance on imported tomatoes, creating jobs, and strengthening local agriculture. The facility, developed over five years, is a major step toward Nigeria’s food security and economic independence.

Nigeria consumes about 2.3 million tons of tomato paste annually, yet imports the majority, spending $360 million each year, primarily from China. Aliko Dangote, President of the Dangote Group and Africa’s wealthiest man, sees the new plant as a transformative initiative within Nigeria’s agriculture sector. “This factory not only meets domestic demand but sets a benchmark for what Nigerian agriculture can achieve,” he said at the plant’s unveiling.

The new facility is projected to produce over 400,000 tons of tomato paste yearly, significantly cutting Nigeria’s need for imports. Additionally, Dangote Group has invested in a N3 billion greenhouse nursery in Kano that will produce 300–350 million hybrid tomato seedlings annually. This nursery will supply high-quality seedlings to local farmers, further boosting Nigeria’s tomato production.

One of the plant’s main goals is to tackle Nigeria’s high rates of post-harvest loss. Farmers currently lose around 900,000 tons of tomatoes each year due to poor storage and transportation. By sourcing raw tomatoes directly from farmers in the Kadawa Valley, the plant will pay a guaranteed price of $700 per ton—nearly double the usual $350—offering farmers a stable income and helping curb rural-to-urban migration.

Soaring inflation has made fresh tomatoes increasingly expensive, with prices doubling this year alone. As a result, many households now turn to tomato paste or substitutes like red bell peppers. In support of local farmers, the Federal Ministry of Agriculture and Food Security has launched a program to provide seeds to 500 smallholder farmers in Edo State, aimed at stabilizing supply.

Dangote’s investment sets an example of Nigeria’s agricultural potential and self-sufficiency for other African nations. “Investing in our own production is not just a business strategy; it’s a commitment to Nigeria’s future,” Dangote added. With a net worth of $11.2 billion, Dangote continues to diversify Nigeria’s economy, expanding from cement, flour, and sugar into tomato processing.

 

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