The Dangote Tomato Processing business, owned by Africa's richest man, Aliko Dangote, is facing significant challenges that threaten its survival. The 9-year-old business, a subsidiary of the larger Dangote Group, is struggling to stay competitive amidst high operational costs and competition from substandard foreign products.

According to Abdulkarim Kaita, a former managing director of the firm, the tomato processing plant's current state is a result of government negligence, which has allowed tomato paste importers to flood the market with substandard products. Kaita revealed that the imported products are not 100% tomato, but rather a mixture of starch, flour, and other additives, making it difficult for local operations to compete.

The former manager also highlighted the impact of pricing on the plant's operations. "Prices are changing daily in the Nigerian market, and you have to move that price or you run out of business. How can we compete with that?" he asked. Kaita added that poverty is a major factor influencing the market, with people opting for cheaper, lower-quality products.

The Dangote Tomato Processing Limited was established to boost domestic production and reduce Nigeria's reliance on Chinese imports of tomato paste. However, the facility has been plagued by difficulties, including a lack of supplies and a disagreement over farmer payments. In 2017, bugs decimated large portions of the crop, forcing the business to shut down operations.

Despite efforts to restart production, the factory has struggled to achieve its intended goal of sourcing 900,000 tons of tomatoes from farmers, thereby reducing the need for importing 300,000 tonnes of processed tomatoes from China. A report by Tomatoesnews in 2021 revealed that the facility had barely turned a profit six years after commencing operations, due to its inability to get enough tomatoes to process.

Nigeria currently ranks as the 13th largest tomato paste importer in the world and third in Africa, importing over 1.3 million metric tonnes of the fruit and paste annually. The country's demand for tomato paste is approximately three million metric tonnes, forcing it to rely on imported products to fill the supply gap.

The struggles of the Dangote Tomato Processing business have significant implications for Nigeria's goal of becoming self-sufficient in food production. The country's reliance on imported tomato paste undermines its efforts to promote local agriculture and reduce its dependence on foreign products.

In conclusion, the challenges facing the Dangote Tomato Processing business serve as a reminder of the need for government support and protection of local industries. The Nigerian government must take steps to address the issues of smuggling and unfair competition, ensuring a level playing field for local businesses to thrive and contribute to the country's economic growth.