Nigeria imports an average 150 metric tons of tomato paste yearly
Nigeria is on the verge of reducing the N6 billion currently expended annually in foreign exchange on tomato imports, the Federal Government has said. This is coming barely two months into the announcement of the new tomato policy. Also, Nigeria is set to reduce her average 150 metric tons annually importation of tomato paste.


Reasons for this may not be unconnected with the observation by the government that the new policy on importation of tomatoes has stimulated the establishment of new and emerging processing plants as well as the resuscitation of some hitherto comatose tomato concentrating plants.

The Minister of Industry, Trade and Investment, Dr. Okey Enelamah, said this while speaking on the achievements of the new tomato policy in an interview in Lagos.
Enelamah explained that the private public partnership committee set up by the Federal Government on the new tomato policy is already yielding positive results especially on the implemation of curbing importatation of concentrated tomato into the country.

The minister said the revamping of the abandoned local tomato processing plants and the new ones that are springing up has been a catalyst towards achiving sustainable self sufficency in tomato production in-country.
The tomato policy is also part of the Federal Government’s quest to reduce the huge foreign exchange spent on tomato importation.
Particularly, the Industry minister noted that the influx of tomato paste into the country due to lack of regulatory policy in the sector has brought about circulation of sub-standard tomato paste across the country.

His words: “That is why we launched a tomato policy recently. Tomato happens to be a crop that grows very well in Nigeria. Clearly, with this new policy, we can grow all the tomatoes we need – both the ones that are consuming without being processed (fresh) and the ones that are being proccessed into tomato concentrate and which ends up in cooking.

He added: “But what has happened in the sector before we came in was the flooding of cheap tomato paste into the country, of which some of them are substandards.
“So we found out that people are finding it difficult to compete locally.
He added: “So what we’ve done is to issue a new tomato policy that bans first of all, retail of tomato paste and that it should be produced locally. And even for so called packers those who bring in industrial paste and they pack it here. We have basically said that they should pay an extra duty of 50% and of course, there is also a levy of $1500 per tons.

“The idea of the new tomato policy is in favour of local production. And I think we have already seen some positive signals in the processing plants that were redundant now going back to work. “People are basically retooling their abandoned plants.”
Indeed, the industry minister insisted that the government has not totally banned the importation of tomato paste into the country. Rather, it only introduced higher duty, tariff and levy for prospective importers in order to discourage importation of the product.

He said: “Yes. We haven’t stopped people from bringing in the paste, we only said that you will pay more if you bring it here because you have breached the incentive of growing it here. So in a nutshell, we are trying to say that importing paste is a luxury thing whereas, we can grow it locally.”
In the same vein, the Director General of the Raw Materials Research and Development Council (RMRDC), Dr. Hussani Ibrahim, also said the new tomato policy is to curb the challenges of raw materials deficit in the sub-sector.

Ibrahim also in a chat with New Telegraph, said that its agency came up with the initiative to develop tomato across the value chain with a view to solving the challenge of raw materials deficit in the sub-sector.
He said: “With an annual national domestic demand estimated at 2.4 million metric tons, only about 1.7 million metric tons is produced annually, leaving a deficit of 700,000 metric tons due to cultivation of existing low yield varieties and high post-harvest losses.”

He however, advised that in order to operate the plants at optimal capacity and competitively, as well as satisfy the demand for table use, an additional five million metric tons of quality processing grade tomato fruits would be required.
According to him, access to improved seeds must be guaranteed in addition to adopting global best agronomic practices in production and handling.

SOURCE: https://brandspurng.com/nigeria-to-reduce-n6bn-fx-spending-on-tomato-imports/

Waiting for the next tomato scarcity b4 they start running upandan

With the assorted lands in the North, Nigeria suppose to export tomatos not importing.

God please remember my country Nigeria.

I want to come back home and be proud of my country nigeria

This government is confused, na so dem dey bring different policies, and non of dem dey work.

Abeg #BringBackOurNaira

N200/$1 or less

Has anyone else ever notice that early morning threads are usually very boring and dry

Chrisozone:
With the assorted lands in the North, Nigeria suppose to export tomatos not importing.

God please remember my country Nigeria.

I want to come back home and be proud of my country nigeria

beta stay where u are. Na God make where u dey better

Let's hope everything works out well

Sniper12:
beta stay where u are. Na God make where u dey better

Brother no place like home. Sometimes its not about the money but the love for your people

WHAT I FOUND OUT IN 2015 WHEN I LEARNT THAT DANGOTE WANTS TO GO INTO TOMATO PASTE PRODUCTION ...
I don't know why Bloomberg didn't see this while designing the plant for Dangote. I did a similar design in 2015 and this was my finding: taking a production capacity of 360,000 tons of tomato paste annually as a basis. Material balance revealed that 2,477,100 tons of raw tomato is required. (Raw tomato is 7 degree Brix while tomato paste is 30 degree Brix). Market survey revealed that a ton of raw tomato in the local market was 350 dollars while a ton of tomato paste was 1,300 dollars. Ignoring every other costs, annual cost of raw material for the plant was 866,974,500 dollars whereas annual income from sales of tomato paste was 702,000,000 dollars. I concluded and reported that the plant was technically sound but lacked economic viability. My recommendations were: 1. Government should intervene and subsidize the production cost of tomato for farmers who would sell the raw material to processors at subsidized rate. 2. The plant should consider producing other products like lycopene from the waste. 3. The plant should employ pinch technology to recover heat from the three effect evaporator for use in other units like sterilization and preheating. I love this government policy. It is a step in the right direction.

Just hit the nail on the head already. Just another policy to help Dangote's tomato processing venture in kano, which is a good or bad thing depending on how you look at it

why place exorbitant charges on importation when you have done nothing practically to increase local production.....


it is obvious.....they don't care about the plight of the poor masses

I keep wondering what magic/voodoo/prayer it would take Nigeria to get things right? Almost every region in Nigeria is blessed with arable land suitable for planting various range of crops yet we are not food sufficient. If Nigeria weren't like a ship without a rudder, it wouldn't be spending so much money importing tomato paste when it can setup tomato paste making factories in regions with abundant tomatoes.

Why don't you use the funds from taxes to provide loans for farmers to build tomato factories so straight from the farm to the factory.

Another to...... .

harrwix:
why place exorbitant charges on importation when you have done nothing practically to increase local production.....

it is obvious.....they don't care about the plight of the poor masses

From your point of view, what should be done by government to show care about the plight of the "poor masses?"

Local production of tomatoes will create first and foremost employment: for farmers and workers in the processing plants.

Oduok:
WHAT I FOUND OUT IN 2015 WHEN I LEARNT THAT DANGOTE WANTS TO GO INTO TOMATO PASTE PRODUCTION ...
I don't know why Bloomberg didn't see this while designing the plant for Dangote. I did a similar design in 2015 and this was my finding: taking a production capacity of 360,000 tons of tomato paste annually as a basis. Material balance revealed that 2,477,100 tons of raw tomato is required. (Raw tomato is 7 degree Brix while tomato paste is 30 degree Brix). Market survey revealed that a ton of raw tomato in the local market was 350 dollars while a ton of tomato paste was 1,300 dollars. Ignoring every other costs, annual cost of raw material for the plant was 866,974,500 dollars whereas annual income from sales of tomato paste was 702,000,000 dollars. I concluded and reported that the plant was technically sound but lacked economic viability. My recommendations were: 1. Government should intervene and subsidize the production cost of tomato for farmers who would sell the raw material to processors at subsidized rate. 2. The plant should consider producing other products like lycopene from the waste. 3. The plant should employ pinch technology to recover heat from the three effect evaporator for use in other units like sterilization and preheating. I love this government policy. It is a step in the right direction.

...I don't really know why dangote stop production then, but I believe the primary reason wasn't because of pest. where govt missed it is the decision to change things overnight. if proper and adequate analysis has been done as you have rightly said,I think things will be better. just imagine 50% increase in duties and 1500$ on each tone. with that rate tsk tsk.!!!! no tomato can survived unless there is back door to bring the paste.

Good but what would be the result? scarcity

chukxie:
I keep wondering what magic/voodoo/prayer it would take Nigeria to get things right? Almost every region in Nigeria is blessed with arable land suitable for planting various range of crops yet we are not food sufficient. If Nigeria weren't like a ship without a rudder, it wouldn't be spending so much money importing tomato paste when it can setup tomato paste making factories in regions with abundant tomatoes.

it has to be the oil in the niger delta other regions die with or never would they rest.

let us all espouse true federalism and watch this country grow. these projects should have long been executed by state governors in collaboration with private stakeholders like dangote. nigerians should stand and ask for the right things.

Mentorkaryhm:
...I don't really know why dangote stop production then, but I believe the primary reason wasn't because of pest. where govt missed it is the decision to change things overnight. if proper and adequate analysis has been done as you have rightly said,I think things will be better. just imagine 50% increase in duties and 1500$ on each tone. with that rate tsk tsk.!!!! no tomato can survived unless there is back door to bring the paste.

the government of today is filled with stark illiterates and jejune hands. they just act with out a proper analysis of the economic system. stark illiterates all of them.

Izonpikin:
it has to be the oil in the niger delta other regions die with or never would they rest.

let us all espouse true federalism and watch this country grow. these projects should have long been executed by state governors in collaboration with private stakeholders like dangote. nigerians should stand and ask for the right things.

You are right. True federalism is the panacea for the myriad of problems plaguing Nigeria. With true federalism each state would use the wealth derived from its resources to develop itself. I wish this political system would be embraced for the betterment of Nigerians because honestly, Nigerians are suffering in the midst of so much resources. Poignantly, a number of greedy and selfish politicians in Nigeria will never support true federalism because doing so will hinder them from carrying out their corrupt practices.

chukxie:


You are right. True federalism is the panacea for the myriad of problems plaguing Nigeria. With true federalism each state would use the wealth derived from its resources to develop itself. I wish this political system would be embraced for the betterment of Nigerians because honestly, Nigerians are suffering in the midst of so much resources. Poignantly, a number of greedy and selfish politicians in Nigeria will never support true federalism because doing so will hinder them from carrying out their corrupt practices.

reason why to an extent nigeria needs some radical individuals outside the political space to push for true fedralism,secession or what ever to get us out of the mess we are in..constant electricity is still a problem in this confined space called nigeria..

Nice initiative. But even if Government encourage farmers to aggressively grow the high yielding varieties, what about the problem of post harvest storage? And there are also the issues of insufficient research into tomato cultivation, pest control, the menace of Fulani nomads...

Kudos to govt, at least they've started something

This post is the only post have seen on this platform with matured comments on it without insult/verbal abuse.


The policy is a great development and I think no importation of Tomato paste can survive it. This will promote and encourage local production.

Dan Gote tomato policy.

400billionman:
Dan Gote tomato policy.

Dan Gote tomato isnt producing now, and Dan Gote doesnt have the largest tomato paste producing capacity; hope you know that?

menxer:

From your point of view, what should be done by government to show care about the plight of the "poor masses?"

Local production of tomatoes will create first and foremost employment: for farmers and workers in the processing plants.

before raising the extant charges, which will in the long run affect the price of the product in the market; the government that is considerate would have ensured that there is sufficient production of the commodity. so that the masses would have a cheaper option available.... doing otherwise would be tantamount to being insensitive , especially in these times where the purchasing power of the masses have been highly watered down

I can see we ve so many advisers here.

una weldone o!