As part of measures towards addressing concerns of stakeholders on the newly announced tomato policy, the Federal Government has confirmed that it is already receiving Expression of interests, (EoI) on tomato processing plants, from would-be investors.
The federal government said the project will provide opportunities for the key stakeholders and farmers in the tomato value chain, to enable them play active role and harvest the benefits of the $180 million tomato industry in the country, while also growing the economy.
Okechukwu Enelemah, the Minister of Industry Trade and Investment confirmed to BusinessDay that the government is also paying attention to the concerns raised by stakeholders in the tomato sector, and would address such concerns accordingly.
“Already, I have seen stakeholders explaining the need to have enough processing, manufacturing and processing capacity in the country, to ensure that our people play key role in tomato value chain. We are addressing that appropriately, and there are already expression of interest from investors.
Enelemah, explained that the tomato policy ensures that processing of the tomato paste is done here in the country to enable farmers who have positioned themselves along the key tomato value chain benefit from it.
The tomato policy, contained in the Nigeria Industrial Revolution Plan (NIRP), is aimed at encouraging local production of tomato vegetable and tomato concentrate, tomato paste manufacturing and as well as discourage the importation of tomato concentrate into the country as tariff is increased by 50%.
Tony Ejinkonye, President of Abuja Chamber of Commerce and Industry said the New tomato policy has all potentials to make the country self-sufficient in tomato production and thus set pace for liberating Nigeria from the shackles of dependency and food insecurity.
Unfortunately, he noted, the policy restricts access to the highest quality raw materials for almost all participants across the value chain, and tries to force them to go local.
“The tomato industry is at least three industries,which precludes: 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,” Ejinkonye said.
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.
“Local concentrate that 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,” he said.
Reacting to the 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.
She told BusinessDay that the Policy implementation plan also include 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 tomato processing and packaging value chain,as only fewer companies embark on that in the country.
Nigeria currently ranks second largest producer of tomato 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 largets importer of tomato paste from China and Italy.
Industry watchers insists that Nigeria must identify the concerns raised by stakeholders such as lacuna in tomato processing plants for concentrates to ensure swift implementation of the policy,and satisfy local demands.
