Business
Re-engineering Tomato Processing For National Sufficiency
Wife of the President, Mrs Aisha Buhari (2nd left), inspecting fresh tomatoes at the inauguration of Erisco Foods Tomato Paste Revolution, in Lagos, recently. With her is President/Chief Executive of Erisco Foods Ltd., Chief Eric Umeofia (left).
In December 2015, Mrs
Sarah Smith, like most women agonised over the high cost of tomatoes in the market which marred her Christmas shopping due to paucity of funds arising from the economic downturn of the country.
However, upon her visit to the market in February 2016, she was dumbfounded by the reduced price of a basket of tomatoes occasioned by the alarming glut of the produce.
She said: “In December, I bought a basket of tomatoes from Mile 12 market at N21, 000, a produce I had bought between N6,500 and N8,000 in the previous months.
“Now, a basket of tomatoes goes for between N2,500 and N4,000 in the same market due to excess supply leading to huge waste of the produce because of its perishable nature.
“How I wish I could buy a lot and store in my freezer for the rainy season when tomatoes are usually pricey, but the epileptic power supply in the country will not allow that’’.
This situation is one of the many that tomato price fluctuations has caused, raising concerns to many homemakers for a pragmatic approach to reduce waste through preservation of the excess produce.
According to the Federal Ministry of Agriculture and Rural Development (FMARD), Nigeria is the 13th largest producer of tomato in the world and the second after Egypt in Africa.
Nigeria has a domestic demand for tomatoes put at 2.3 million tons, while it produces only 1.8 million tons annually.
However, due to the dysfunctional agricultural value chain system, about 50 per cent of the tomato produced is wasted due to lack of preservation, poor handling system, poor distribution channels and lack of easy access to markets.
The situation has resulted in tomato waste of over 750, 000 tonnes and an import bill of N16 billion annually to make up for the shortfall in local production.
According to experts, the panacea to reduce tomato waste is to preserve the excess supply through local processing into juice, paste, ketchup, puree and powder form.
The country’s Ministry of Agriculture puts the annual local demand for tomato paste at 900,000 tonnes.
Sadly, Nigeria is forced to rely on import of tomato puree, mostly from China because of lack of adequate processing plants.
Currently, most of the tomato processing plants in Nigeria are non- functional, ranging from Manto Tomato Processing Plant in Gombe State and Wanunne Tomato Processing Plant in Benue.
Others are Galf Tomato Factory in Jigawa State, Lau Tomato Processing Company in Taraba, Savannah Integrated in Borno and Perfect Integrated Foods Industry Ltd situated in Ondo State.
Data from FMARD reveals that the non-functional plants have processing and packaging capacities ranging from 7.0 to 1,050 metric tons of tomato paste per day.
Unarguably, lack of tomato import control, unstable power supply, inadequate assessment of market and supply chain channels are some identified factors that led to the absence of processing plants.
To mitigate these problems and ensure wastage is curtailed during glut, indigenous companies have risen to the challenge by reviving one of the moribund processing plants and investing in the industry.
Notably, the Ikara Food Processing Plant in Kaduna which had been moribund for over two decades was resuscitated in 2014 through a Public-Private Partnership between the state government and Springfield Agro Ltd.
The Ikara Tomato Company was established in 1981 by the Balarabe Musa administration. The company has an installed capacity for processing 16,950 tons of tomato and 700 hectares of land purposely for tomato farming.
As at today, the company’s tomato paste production from fresh tomatoes is put at 20 metric tons daily.
Following the trail of Ikara Food Company in tomato processing in Nigeria is Erisco Foods Ltd.
The Chief Executive Officer of Erisco Foods, Chief Eric Umeofia, said the plant has an installed production capacity of 450,000 metric tonnes per annum in its Lagos factory alone, making it the biggest in Africa and 4th largest in the world.
“The Erisco Foods revolution in tomato paste production will stop the annual wastages by over 75 per cent of fresh tomatoes across Nigeria.
“If we continue with the good policies of the present administration, there will be nothing like tomato glut anywhere in Nigeria in the next two years.
“We as off-taker will produce and process to meet our local demands and export to earn foreign exchange provided government continues to support manufacturing.
“Our backward integration programmes planned for Jigawa, Sokoto and Katsina states will generate employment and prosperity for 50,000 Nigerians within three years,’’ said Umeofia.
Also, Dangote Industries Ltd is not left out of the drive to boost the industrial sector of the economy with the establishment of Dangote Tomato Factory in Kadawa, Kano State.
The plant which will begin operation in March has a production capacity of 430,000 metric tonnes of paste per annum.
The factory requires 40 trailers of fresh tomatoes (1, 200 MT) each day to run at full capacity.
To strengthen the supply chain needed to improve tomato processing, the factory is collaborating with GEMS4 and the Tomato Growers Association in Kano.
Kano farmers supplying the factory means more sales, less waste and year-long demand for tomatoes even during the oversupply period.
Growth and Employment in States — Wholesale and Retail Sector (GEMS4) facilitates links between farmers and processing companies such as Dangote Factory and Ikara Food Company.
Its reach targets 100,000 farmers in Kaduna and Kano states.
GEMS4 is a 17 million pound market development project in Nigeria, funded by the World Bank and the U.K’s Department for International Development.
Its mandate is to facilitate market system changes to address identified constraints to encourage economic growth, resulting in the creation of 10,000 new jobs and increased incomes for 500,000 people, especially for the poor rural dwellers and women.
GEMS4 has been in implementation since 2012 and will be in operation until July 2017.
The project employs a “Making Markets Work for the Poor (M4P)’’ approach to implement initiatives that facilitates entry into markets.
It also provides technical support for the adoption of innovations, new business models and leverage investments for the development of key market facilities to support optimal business performance.
Mr Richard Ogundele, Intervention Manager for GEMS4, said that linking tomato farmers to processing plants initiative creates increased business choices for farmers by facilitating business linkages between small scale tomato farmers and tomato processing plants.
It enables them to serve each other on a commercial basis.
“The initiative also builds the capacity of farmers in good handling practices which ensures that incomes increase across the value chain.
“Proper handling, packaging and protection of their produce in a way that ensures quality, extends shelf-life and preserves sales value.
“Good quality produce attracts higher retail prices and financial losses from produce damage is prevented.’’
Similarly, an economist, Mr Adeoye Abiodun, decried Nigeria’s status as the largest importer of tomatoes as detrimental to economic growth and protection of local investments.
He said: “Available data reveals that the country has the wherewithal to meet local demands and even become a net exporter of the commodity.
“Importation of tomato paste to fill the local demand gap could be reversed with the right measures targeted at eliminating waste in the value chain’’.
Also, the Secretary to the Government of the Federation, Mr Babachir Lawal, said government would continue to support the growth of indigenous businesses, especially in this period of economic downturn.
He said that the current economic reality calls for a decisive policy thrust to address issues which must be realistic enough to leverage upon.
Ishola writes for the News Agency of Nigeria (NAN)
Oluwafunke Ishola
The Nigerian Communications Satellite Limited (NIGCOMSAT), the country’s satellite operator, has called for immediate promolgation of policy action that will enable the country to harness the potentials of Artificial Intelligence (AI).
NIGCOMSAT, also warned that Nigeria risks missing out on Africa’s projected $1.2trillion share of the global AI economy by 2030.
Managing Director of NIGCOMSAT, Nkechi Egerton-Idehen, disclosed this in a statement issued at the weekend following her participation in the Meeting of the National Council for Communications, Innovation, and Digital Economy.
“Artificial intelligence is reshaping industries, economies, and societies worldwide, with projections that it will contribute up to $15.7trillion to the global economy by 2030. Africa stands to gain $1.2trillion of this if the right policies and innovations are in place”, Idehen said, citing a PricewaterhouseCoopers report.
The NIGCOMSAT MD underscored the transformative potential of AI in agriculture, highlighting its applicability in Benue State, widely regarded as Nigeria’s “food basket.”
According to her, machine learning tools could revolutionize agricultural practices by improving pest detection and optimizing planting schedules using satellite imagery.
“AI offers us the chance to not only flourish economically but also to achieve food security. However, we must ask ourselves if we are prepared to manage this technology responsibly”, she added.
Idehen also noted that internet access remains a significant barrier to AI adoption in Nigeria.
“For AI tools to be effective, basic digital infrastructure is essential. Addressing this gap must be a priority.
“AI is happening. We have the opportunity to manage this technology revolution responsibly, both in Africa and globally, through innovation and governance”, she said.
In August 2024, the Federal Ministry of Communications, Innovation, and Digital Economy released a draft National Artificial Intelligence Strategy, aiming to position Nigeria as a global leader in AI.
Corlins Walter
The Chairman of Emohua Local Government Council, Chief David Omereji, has said the council has so far spent over N1 billion for the electrification of communities in the area.
Omereji said this while addressing staff of the council at the council headquarters recently.
He said the move was part of his administration’s resolve to ensure peace and development of the LGA.
According to him, the Council spent about N29 million on monthly basis for the maintenance of the Emohua Local Vigilante group known as OSPAC, with each member being paid a stipend of N100, 000 monthly.
He diaclosed that 11 out of the 14 wards are currently enjoying electricity, while efforts are on to light-up the remaining ones.
“I also want to use this opportunity to inform the political class for purposes of records and for the understanding of the people that the Council under my watch have done more than enough”, he said .
The Emolga boss explained that all that have been achieved were through the personal effort of the Council, without support from anybody as rumoured in some quarters.
Omereji further reaveled that a number of other projects, including roads, fencing of schools, hospitals, courts premises, and reconstruction of some abandoned buildings at the Council Headquarters are being undertaken by his administration.
He enjoined the people of the area to support his administration’s drive to bring purposeful development to the LGA.
The Emohua Council boss, who reiterated his hatred for noise making, stated that his works would speak for him, and solicited the support of staff of the council and the entire people of the area.
He noted the fact that some people may not be happy with his achievements, saying that he would remain focused, while advising critics of his government to do so constructively with facts and figures.
King Onunwor
The Movement for the Survival of the Ogoni People (MOSOP) has raised some ethical questions over a Financial and Technical Services Agreement (FTSA) between Sahara Energy and West African Gas Limited (WAGL), an affiliate of the Nigerian National Petroleum Company (NNPC).
MOSOP said the agreement was not done in good faith, not in the interest of the Nigerian people, and did not follow due process.
Foremost Ogoni born activist and MOSOP leader, Fegalo Nsuke, who made this known in Abuja, weekend, described the Sahara-WAGL deal as fraudulent, deceptive and an insult on the intelligence and integrity of the Nigerian nation.
Nsuke called on President Bola Ahmed Tinubu to cancel that FTSA between Sahara Energy and WAGL, noting that the agreement is fraught with irregularities and deceptive.
“What Sahara and the NNPC did in the FTSA between Sahara and WAGL is shameful and depicts high level corruption in public service of our country.
“WAGL is an affiliate of Sahara and the NNPC. How then can Sahara go into an agreement with its own affiliate? It’s as good as going into an agreement with itself. This is deceptive and fraudulent”, Nsuke said.
He continued that “Sahara Energy is certainly not a company the Ogoni people want on their soil and we are calling on Mr. President, Bola Ahmed Tinubu, to terminate any deal between the NNPC and Sahara Energy over OML 11, and to allow for an inclusive arrangement that considers a fair treatment of the Ogoni people in the distribution of revenues from natural resource extraction on Ogoni soil.
“The last Ogoni Congress has been unequivocal on the Ogoni demand for justice and has given a clear path to resolve the three decade old conflict between all critical parties.
“It will be good to explore this path to peace and development for Ogoni and for our country”.
Nsuke accused Sahara Energy and the NNPC of frustrating the progress made by MOSOP to achieve a permanent solution to the Ogoni problem.
He urged a presidential intervention with deep consideration for a fair treatment of the Ogoni people in order to permanently address the problem.
He noted that Sahara Energy should give up on the Ogoni area to allow for an engagement in the interest of the country and the people.
Recall that MOSOP and Sagara Energy have recently been engaged in a row in what MOSOP describes as an unholy relationship between Sahara Energy and the NNPC over OML 11.
MOSOP expressly rejected Sahara Energy and called for a fair treatment of the Ogoni people in natural resource extraction in Ogoni.
It noted that Ogoni people, led by MOSOP, paid the sacrifice to take the oil from Shell, hence “the position of MOSOP must be taken into consideration in decisions relating to resumption of oil production in Ogoni”.