Nigeria can save N11.7b yearly on tomato import, says producer

By Our Reporter
Nigeria can save over N11.7 billion yearly from tomato paste import if local producers are fully supported.
Sonia Food Industries Managing Director, Nnamdi Nnodebe, who made the point, urged Abuja to grant indigenous producers a window of 18 months to integrate backward, during which time they will access foreign exchange (forex).
He spoke in the presence of Ogun State Commerce and Industry Commissioner, Bimbo Ashiru, who was on tour of manufacturing firms in the state.
Under the new policy of the Central Bank of Nigeria (CBN), 41 items are barred from access to forex, which Nnodebe said makes it difficult for manufacturers to acquire raw materials.
“I am very confident, if given this allowance, it will work together for our good and for the economy, because Sonia Foods can complete a tomato factory farm processing tomato concentrate within two years,” he said.
Manufacturers Association of Nigeria (MAN) President, Frank Jacobs, added that “18 months’ window is what manufacturers of tomato need to move the sector forward.
“Backward integration is paramount on the mind of tomato producers, and it would only be ideal to support them, actualise this ambition for the good of our economy.
“As you well know, once this is actualised jobs would be created and more importantly exports would start to happen because Nigeria has the potential to become a leading exporter of concentrates, if given the prerequisite support.”
Jacobs said one way to make this happen is through partnership with Northern states, since tomato cultivation thrives in the North where it finds favourable climate.
He urged Northern governors to work with “credible manufacturers like Sonia Foods” to speedily achieve backward integration.
According to him, Nigeria is the second biggest producer of tomato in Africa and 13th in the world but spends N11.7 billion a year to import tomato paste.
“Sadly, about 750,000 tonnes of tomatoes harvested in Nigeria go to waste as a result of poor food supply chain (FSC) management; price instability, and the supply preference of farmers and middlemen for urban markets than processors due to low farm gate prices.”
Jacobs explained that the solution is to provide an avenue for Nigerian manufacturers of tomato paste to harness this yield for paste production, thereby encouraging farmers and keeping them gainfully and positively engaged.
Ashiru pledged the support of the state government for manufacturers in Ogun by taking their case to the federal Ministries of Finance, Industry, Trade and Investment.
He also informed them that the government is working on roads and infrastructure to make the state more conducive to investment.
“We have started work on the Shagamu Road and some of the federal government roads as well. Most of the roads we are doing in Ogun State are federal government roads but there are no federal government people,” he stressed.
“Our government is committed to creating the enabling environment through good road networks because if they are producing all these goods and we don’t have good road networks, the goods are dead on arrival.
“We are also building bridges in order to reduce traffic.”
Ashiru expressed satisfaction with the level of manufacturing and employment provided by Sonia Foods in Shagamu.
“I am impressed that Nigerians are able to think inwards and produce locally. The owners of Sonia have been able to demonstrate best practices in their production and are creating over 4,000 direct and indirect jobs.”
He canvassed synergy between manufacturers along the value chain and advised them to patronise their counterparts across sectors in order to cut down on imports and high cost of production.
“We are allocating lands to industries in the same line of raw materials and production so that they can take advantage of forward and backward integration and business can be easy for all investors in Ogun State.”