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Nigeria is now witnessing increasing investment interests in its tomato processing chain, following the Federal Government’s decision to ban import of tomato concentrate which has frustrated local production, taken away considerable foreign exchange and jobs from the struggling economy.
Okechukwu Enelemah, the Minister of Industry, Trade and Investment, who confirmed this to BusinessDay, explained that the policy ensures that processing of the paste is done in the country, to enable farmers who have positioned along the key tomato value chain to benefit from the sectoral policy.
“Already, I have seen stakeholders explaining the need to have enough processing, manufacturing and processing capacity in the country, to ensure that our people a play key role in the tomato value chain. We are addressing that appropriately, and there are already expressions of interest from investors,” Enelemah stated during a discussion with BusinessDay.
Statistics from the Food and Agriculture Organisation (FAO) show that local tomato paste production is less than 5,000 metric tonnes (MT) currently, leaving to a gap of 145,000 MT-equivalent to 1.1 million MT of fresh tomatoes.
Estimated annual local production of fresh tomatoes is put at 1.4 million MT, while estimated imports of tomato paste is 150,000 MT-equivalent to 1.1 million of Fresh tomatoes, leaving a shortfall of 1.3 million MT.
Recently, the Ministry of Industry, Trade and Investment, announced a ban on the importation of tomato paste, powder or concentrate, and also increased the tariff on importation of tomato concentrate.
The ban on tomato import is part of the sectoral policy on tomato, contained in the larger Nigeria Industrial Revolution Plan, (NIRP). The new policy is aimed at encouraging local production of tomato fruit and tomato concentrate, tomato paste manufacturing, as well as discouraging the importation of tomato concentrate into the country as the tariff is increased by 50%.
Then ban was not total, but intended to revive the sector, create jobs and preserve foreign exchange.
Enalamah explained that the Federal Government would work more closely with the stakeholders in the tomato industry in addressing their concerns, while ensuring that they play an active role in harvesting the benefits of the $180 million tomato industry in the country and also growing the economy, and creating wealth.
Speaking on the policy, Tony Ejinkonye, the President of Abuja Chamber of Commerce and Industry, said the New tomato policy has the potential to make the country self-sufficient in tomato production and thus set the pace for liberating Nigeria from the shackles of food dependency.
Ejikonye however argued that the current tomato policy, unfortunately, restricts access to the highest quality raw materials for almost all participants across the value chain, and tries to force them to go local.
He explained that, “The tomato industry is at least three industries: Growing tomatoes is one industry. Turning tomatoes into concentrate is another industry. Finally turning concentrate into the tomato paste that we buy off the shelves, is another industry.”
He expressed concern that the policy places the final tomato paste manufacturers at a disadvantage by restricting their access to imported concentrate, and forcing them to use local concentrate.
He said, “Local concentrate currently cannot compete in terms of reliability and quality, with imported concentrate. The implication is that the local tomato paste will be more expensive, and of lower quality than the imported tomato paste, which will be waiting at the border, ready to be smuggled in.”
Reacting to this development, Edrin Akemu, Special adviser to the Minister of Industry, Trade and Investment on the Tomato Policy said, “The minister has evaluated the installed production capacity as part of the policy implementation measures, and will also implement policies to improve capacity utilisation of the existing processors.
Akemu told BusinessDay that the policy implementation plan also included facilitating investment in new plants, which is already witnessing expression of interests.
Speaking further on the efforts of the Federal Government to ensure swift implementation of the policy, Akemu said, “The policy has just been announced, however, there is an inter-ministerial implementation committee which would review and report on measures to improve performance periodically.
Meanwhile, stakeholders have insisted that there is still a lacuna in the tomato processing and packaging value chain, as only a few companies embark on that in the country.
Nigeria currently ranks second largest producer of tomatoes in Africa and 13th in the World, with a total production estimated at 1 million hectares of land producing 1.701 million tonnes per annum, with average of 20-30 tonnes;yet Nigeria is the largest importer of tomato paste from China and Italy.
Industry watchers insists that Nigeria must identify the concerns raised by stakeholders, such as the lacuna in tomato processing plants for concentrates to ensure swift implementation of the policy, and satisfy local demand.
HARRISON EDEH, ABUJA
