Established in 2015 by Aliko Dangote, the Dangote Tomato Processing Company has faced persistent challenges, including high operational costs, inconsistent tomato supplies, and competition from cheap, low-quality imports. These factors have severely impacted its profitability and market presence.
Former managing director Abdulkarim Kaita attributes the company’s struggles to government negligence, allowing substandard tomato paste imports—often diluted with starch and additives—to flood the market. He highlighted that local farmers, who provide fresh tomatoes, cannot compete with the low prices of smuggled products.
“Prices fluctuate daily in Nigeria, and without adjusting, you risk going out of business. No local investor can compete with smuggled tomatoes because they are too cheap,” Kaita explained. He also noted that poverty influences consumer choices, with price outweighing quality.
Nigeria currently ranks as the 13th largest importer of tomato paste globally and the third in Africa, bringing in over 1.3 million metric tonnes annually due to a domestic shortfall. The Dangote factory, designed to reduce reliance on Chinese imports and process surplus tomatoes, initially had a capacity of 1,200 tonnes per day. However, by 2017, pest infestations devastated crops, leading to its closure. A payment dispute with farmers further delayed production for two years.
Recent reports confirm that production remains stalled due to prolonged difficulties in sourcing raw materials. The plant was intended to utilize 900,000 tonnes of tomatoes wasted yearly in Nigeria, reducing the need for 300,000 tonnes of imported paste. However, ongoing supply chain issues continue to hinder its operations.
Source : Business Insider, Feb 19, 2025
