The Dangote Group has launched Africa’s largest tomato processing plant in northern Nigeria, a $20 million initiative designed to cut Nigeria’s dependence on imported tomatoes, create jobs, and boost local agriculture.
Developed over five years, the facility marks a significant milestone in Nigeria’s drive toward food security and economic independence.
Nigeria consumes around 2.3 million tons of tomato paste annually, yet relies heavily on imports—spending $360 million each year, primarily importing from China.
Aliko Dangote, President of the Dangote Group and Africa’s richest man, views the plant as a transformative step in the nation’s agriculture sector.
“This factory not only meets domestic demand but sets a benchmark for what Nigerian agriculture can achieve,” Dangote stated at the unveiling.
The new plant is set to produce over 400,000 tons of tomato paste annually, a volume expected to drastically reduce Nigeria’s import dependence.
As part of this venture, Dangote Group has also established a N3 billion greenhouse nursery in Kano, capable of producing between 300 and 350 million hybrid tomato seedlings annually.
The greenhouse aims to supply farmers with high-quality seedlings, further strengthening Nigeria’s tomato production.
A primary focus of the plant is to address Nigeria’s high post-harvest loss rates, as farmers currently lose approximately 900,000 tons of tomatoes each year due to inadequate storage and transport.
Sourcing raw tomatoes from farmers in the Kadawa Valley, the plant offers a guaranteed price of $700 per ton—a notable increase from the $350 per ton that farmers typically receive—ensuring a stable income stream and reducing rural-to-urban migration.
Rising inflation has made fresh tomatoes increasingly costly, with prices doubling this year alone. Many households now rely on tomato paste and substitutes like red bell peppers.
However, to support local farmers, the Federal Ministry of Agriculture and Food Security has launched a program providing seeds to 500 smallholder farmers in Edo State, helping stabilize supply.
Furthermore, Dangote’s investment underscores Nigeria’s potential for agricultural self-sufficiency, setting a precedent for other African nations.
“Investing in our own production is not just a business strategy; it’s a commitment to Nigeria’s future,” he added. With a current net worth of $11.2 billion, Dangote continues to diversify Nigeria’s economy, with ventures in cement, flour, sugar, and now tomato processing.