The Federal Government has disclosed that the multi-million naira investments being under taking by Dangote Group and Erisco Foods Limited in the manufacturing of tomato paste, are expected to reduce the product importation by 80 per cent soon.
Vice-President, Prof. Yemi Osinbajo, in chat with New Telegraph, during the Lagos Chamber of Commerce and Industry (LCCI) 2016 Presidential Policy Dialogue Session in Lagos, admitted that the present administration under President Muhammadu Buhari, was concerned with the recent events in the tomato industry, even as he said that the country’s two leading tomato industries – Dangote and Erisc – are fully prepared to fill the gap created by the recent outbreak of Tuta absoluta, as soon as harvests become steady.
Osinbajo explained that government was committed to supporting the development of local industries through an enabling environment, as he noted that progress was being made in the tomato industry, if not for, the Tuta Absoluta outbreak that marred the projected harvest.
According to him, it is regrettable to note that the country spends huge foreign exchange in the region of $1 billion to import tomato paste from China, India and the United States of America, and over $25 billion on food imports annually, adding that this cannot continue in this current dispensation as government will encourage local manufacturers to step in and bridge the gap to reduce tomato importation. His words: “The other question which you asked was supporting local manufacturers and you’ve mentioned in particular, the tomato industry.
Well, am sure that Dangote will tell you a lot about what he is doing in that area. Erisco Foods Industry is also another major player in that area, but I think we would have made a great deal of progress in that industry but for the Tuta Absoluta, the tomato disease, that wiped out the considerable portion of the harvests, I mean, the last harvest, I think by now, we would have make a lot of progress.
Frankly speaking, I am quiet confident that if harvests remain steady, I don’t think we will be importing anywhere near this (current tomato imports) but I am sure, we will be able to reduce importation by 80 per cent.”
On whether government plans to hike tariff for importers of the product, Osinbajo said: “I cannot say what will happen in terms of tariff or any such thing. But one thing that is very certain is that the local industry is fully prepared to fill the gap so that importation will be reduced in many ways. And just looking at the projection figures from Dangote and Erisco, I think that gap will be filled up. So, I don’t think that there is much problem in terms of filling that gap.”
It could be recalled that over 40 per cent of tomatoes produced in the Nigeria is lost due to lack of storage and under-developed marketing channels, necessitating plans are to unlock financial investments in production, processing, packaging and distribution; improve primary handling operations from farm operations to processing centers; and improve and expand support services like structuring farmers organisations, improving their technical and managerial skills, extension and training, storage and transportation.
Nigeria imported 150 million tons of concentrated tomatoes worth N170 million into the country yearly
