Connect with us

Business

Re-engineering Tomato Processing For National Sufficiency

Published

on

Wife of the President, Mrs Aisha Buhari (2nd left), inspecting fresh tomatoes at the inauguration of Erisco Foods Tomato Paste Revolution, in Lagos, recently. With her is President/Chief Executive of Erisco Foods Ltd., Chief Eric Umeofia (left).

Wife of the President, Mrs Aisha Buhari (2nd left), inspecting fresh tomatoes at the inauguration of Erisco Foods Tomato Paste Revolution, in Lagos, recently. With her is President/Chief Executive of Erisco Foods Ltd., Chief Eric Umeofia (left).

In December 2015, Mrs
Sarah Smith, like most women agonised over the high cost of tomatoes in the market which marred her Christmas shopping due to paucity of funds arising from the economic downturn of the country.
However, upon her visit to the market in February 2016, she was dumbfounded by the reduced price of a basket of tomatoes occasioned by the alarming glut of the produce.
She said: “In December, I bought a basket of tomatoes from Mile 12 market at N21, 000, a produce I had bought between N6,500 and N8,000 in the previous months.
“Now, a basket of tomatoes goes for between N2,500 and N4,000 in the same market due to excess supply leading to huge waste of the produce because of its perishable nature.
“How I wish I could buy a lot and store in my freezer for the rainy season when tomatoes are usually pricey, but the epileptic power supply in the country will not allow that’’.
This situation is one of the many that tomato price fluctuations has caused, raising concerns to many homemakers for a pragmatic approach to reduce waste through preservation of the excess produce.
According to the Federal Ministry of Agriculture and Rural Development (FMARD), Nigeria is the 13th largest producer of tomato in the world and the second after Egypt in Africa.
Nigeria has a domestic demand for tomatoes put at 2.3 million tons, while it produces only 1.8 million tons annually.
However, due to the dysfunctional agricultural value chain system, about 50 per cent of the tomato produced is wasted due to lack of preservation, poor handling system, poor distribution channels and lack of easy access to markets.
The situation has resulted in tomato waste of over 750, 000 tonnes and an import bill of N16 billion annually to make up for the shortfall in local production.
According to experts, the panacea to reduce tomato waste is to preserve the excess supply through local processing into juice, paste, ketchup, puree and powder form.
The country’s Ministry of Agriculture puts the annual local demand for tomato paste at 900,000 tonnes.
Sadly, Nigeria is forced to rely on import of tomato puree, mostly from China because of lack of adequate processing plants.
Currently, most of the tomato processing plants in Nigeria are non- functional, ranging from Manto Tomato Processing Plant in Gombe State and Wanunne Tomato Processing Plant in Benue.
Others are Galf Tomato Factory in Jigawa State, Lau Tomato Processing Company in Taraba, Savannah Integrated in Borno and Perfect Integrated Foods Industry Ltd situated in Ondo State.
Data from FMARD reveals that the non-functional plants have processing and packaging capacities ranging from 7.0 to 1,050 metric tons of tomato paste per day.
Unarguably, lack of tomato import control, unstable power supply, inadequate assessment of market and supply chain channels are some identified factors that led to the absence of processing plants.
To mitigate these problems and ensure wastage is curtailed during glut, indigenous companies have risen to the challenge by reviving one of the moribund processing plants and investing in the industry.
Notably, the Ikara Food Processing Plant in Kaduna which had been moribund for over two decades was resuscitated in 2014 through a Public-Private Partnership between the state government and Springfield Agro Ltd.
The Ikara Tomato Company was established in 1981 by the Balarabe Musa administration. The company has an installed capacity for processing 16,950 tons of tomato and 700 hectares of land purposely for tomato farming.
As at today, the company’s tomato paste production from fresh tomatoes is put at 20 metric tons daily.
Following the trail of Ikara Food Company in tomato processing in Nigeria is Erisco Foods Ltd.
The Chief Executive Officer of Erisco Foods, Chief Eric Umeofia, said the plant has an installed production capacity of 450,000 metric tonnes per annum in its Lagos factory alone, making it the biggest in Africa and 4th largest in the world.
“The Erisco Foods revolution in tomato paste production will stop the annual wastages by over 75 per cent of fresh tomatoes across Nigeria.
“If we continue with the good policies of the present administration, there will be nothing like tomato glut anywhere in Nigeria in the next two years.
“We as off-taker will produce and process to meet our local demands and export to earn foreign exchange provided government continues to support manufacturing.
“Our backward integration programmes planned for Jigawa, Sokoto and Katsina states will generate employment and prosperity for 50,000 Nigerians within three years,’’ said Umeofia.
Also, Dangote Industries Ltd is not left out of the drive to boost the industrial sector of the economy with the establishment of Dangote Tomato Factory in Kadawa, Kano State.
The plant which will begin operation in March has a production capacity of 430,000 metric tonnes of paste per annum.
The factory requires 40 trailers of fresh tomatoes (1, 200 MT) each day to run at full capacity.
To strengthen the supply chain needed to improve tomato processing, the factory is collaborating with GEMS4 and the Tomato Growers Association in Kano.
Kano farmers supplying the factory means more sales, less waste and year-long demand for tomatoes even during the oversupply period.
Growth and Employment in States — Wholesale and Retail Sector (GEMS4) facilitates links between farmers and processing companies such as Dangote Factory and Ikara Food Company.
Its reach targets 100,000 farmers in Kaduna and Kano states.
GEMS4 is a 17 million pound market development project in Nigeria, funded by the World Bank and the U.K’s Department for International Development.
Its mandate is to facilitate market system changes to address identified constraints to encourage economic growth, resulting in the creation of 10,000 new jobs and increased incomes for 500,000 people, especially for the poor rural dwellers and women.
GEMS4 has been in implementation since 2012 and will be in operation until July 2017.
The project employs a “Making Markets Work for the Poor (M4P)’’ approach to implement initiatives that facilitates entry into markets.
It also provides technical support for the adoption of innovations, new business models and leverage investments for the development of key market facilities to support optimal business performance.
Mr Richard Ogundele, Intervention Manager for GEMS4, said that linking tomato farmers to processing plants initiative creates increased business choices for farmers by facilitating business linkages between small scale tomato farmers and tomato processing plants.
It enables them to serve each other on a commercial basis.
“The initiative also builds the capacity of farmers in good handling practices which ensures that incomes increase across the value chain.
“Proper handling, packaging and protection of their produce in a way that ensures quality, extends shelf-life and preserves sales value.
“Good quality produce attracts higher retail prices and financial losses from produce damage is prevented.’’
Similarly, an economist, Mr Adeoye Abiodun, decried Nigeria’s status as the largest importer of tomatoes as detrimental to economic growth and protection of local investments.
He said: “Available data reveals that the country has the wherewithal to meet local demands and even become a net exporter of the commodity.
“Importation of tomato paste to fill the local demand gap could be reversed with the right measures targeted at eliminating waste in the value chain’’.
Also, the Secretary to the Government of the Federation, Mr Babachir Lawal, said government would continue to support the growth of indigenous businesses, especially in this period of economic downturn.
He said that the current economic reality calls for a decisive policy thrust to address issues which must be realistic enough to leverage upon.
Ishola writes for the News Agency of Nigeria (NAN)

 
Oluwafunke Ishola

Continue Reading

Business

NCDMB, Dangote Refinery Unveil JTC On Deepening Local Content

Published

on

The Nigerian Content Development and Monitoring Board (NCDMB) and the Dangote Petroleum Refinery and Petrochemical Company have inaugurated a Joint Technical Committee (JrefineryTC) aimed at advancing local content implementation during the operational phase of the 650,000 barrels per day  plant.
A statement from the Directorate of Corporate Communications of the Board noted that the inauguration ceremony took place at the Dangote Free Trade Zone, Ibeju-Lekki, Lagos State.
The statement also said the inauguration marks a pivotal moment in fostering strategic collaboration between the both institutions, and was a significant move to reinforce local content development in the oil and gas sector.
Presided over by the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, and the Group Vice President, Oil and Gas, Dangote Group, Chief Edwin Devakumar, the event featured the formal sign-off of the Committee’s Terms of Reference (ToR), a guided tour of the refinery, other critical facilities, and the official commencement of the JTC’s responsibilities.
According to the Board, the visit also featured the presentation of the certificate of the Nigerian Content Downstream Operator of the Year Award won by the Dangote Petroleum Refinery and Petrochemical Company at the inaugural ‘Champions of Nigerian Content Awards’ held recently in May.
The NCDMB’s boss made the presentation to the President of the Dangote Group, Alhalji Aliko Dangote, who expressed delight at the recognition, noting that he would display the certificate proudly at his office.
Ogbe congratulated the Dangote Group on the successful development and commissioning of the largest single train refinery in the world, as well as petrochemical and fertiliser plants, describing the projects as a historic milestone not for Nigeria alone, but for the entire continent.
He emphasized that the Dangote Refinery stands as a testament to the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010 and the transformative potential of Nigerian-led industrial projects.
“At an optimal daily production capacity of 650,000 barrels, this refinery will significantly enhance Nigeria’s energy security and contribute to the supply of refined petroleum products across West Africa.
“Nigerians, have to own the plant, we have to make sure that the plant works well. We have to secure it, we have to maintain it. The NCDMB would continue to collaborate with Dangote Petroleum Refinery”, Engr  Ogbe said.
Highlighting the need to ensure more value retention in the sector, as mandated by the Nigerian Oil and Gas Industry Content Development Act (NOGICD) 2010, the Board’s helmsman demanded compliance with Sections 32 and 33 of the NOGICD Act, with particular reference to local manpower utilization and requirements for NCDMB’s approval prior to the engagement of expatriates.
“The NOGICD Act stipulates that no expatriate can be employed in any organization in the oil and gas industry without the prior approval of the NCDMB. We will work with you, We’ve to protect jobs for Nigerians. It’s critical to job creation, skills development, and national capacity building in line with the ‘Renewed Hope Agenda’ of President Bola Ahmed Tinubu”, he said.
He commended the firm for training and employing Nigerian engineers, saying the collaboration will ensure that qualified Nigerians were given opportunities across all operational roles, while also urging the Dangote Petroleum Refinery and Petrochemicals to support the Board’s initiative which aims at developing oil and gas industrial parks across the country to foster local content and manufacturing in the sector.
He noted that the Nigerian Oil and Gas Parks Scheme (NOGaPS) seeks to create an enabling environment for Small and Medium Enterprises in the sector.
“NOGaPS was conceived by the Board to develop facilities close to oil fields where manufacturing of oil and gas components, as well as research and development, can be carried out.
“We would like Dangote to support one of our major activities, which is the oil and gas industrial parks scheme. The parks are aimed at creating an enabling environment for SMEs in the industry to do fabrications and create more jobs for Nigerians”, the NCDMB’S boss stated.
In his welcome address, the Dangote Group Vice President, Devakumar, highlighted that the refinery project and NCDMB have been working together, promoting local content development during the construction stages of the project.
“We can’t say we have achieved everything, because there is opportunity to do more. We’re grateful to the NCDMB for all their support and advice.  As entrepreneurs, we’re trying to optimise costs. It’s a Nigerian company, it’s also an entrepreneur-driven company. As a Nigerian company, the focus will be on Nigerian content. As an entrepreneur-driven company, it will be cost-focused”, he noted.
Devakumar underscored the long-standing commitment of the Dangote Group to national development and capacity building, saying that the Group’s vision is to grow Nigeria’s industrial landscape.
High points of the visit, according to the Corporate Communications Directorate of the NCDMB, was the inauguration of the Committee members.
The statement from the NCDMB further added that the committee is to ensure the implementation of local content in the refinery’s operations, while its core objectives include promoting the use of Nigerian skilled manpower, services, and locally sourced materials in compliance with Section 3 of the NOGICD Act.
The Tide learnt that the committee will also support Dangote Refinery in aligning its operational procedures with the Act’s requirements.
In his acceptance remarks, Director of Corporate Services at NCDMB and Chairman of the Committee, Mr. Abdulmalik Halilu, expressed gratitude to the leadership of both organizations, reiterating the Committee’s dedication to upholding the highest standards of local content enforcement and fostering measurable outcomes that will benefit the nation’s economy.
Ariwera Ibibo-Howells, Yenagoa
Continue Reading

Business

Food Security: NDDC Pays Counterpart Fund  For LIFE-ND Project

Published

on

The Managing Director of the Niger Delta Development Commission (NDDC), Samuel Ogbuku, says the commission has paid its counterpart fund for the Livelihood Improvement Family Enterprise Project to ensure food security in the region.
The LIFE-ND project is an agriculture intervention project sponsored by the Federal Government, the International Fund for Agricultural Development, and the NDDC to boost food security in the region.
Mr. Ogbuku disclosed this while fielding questions at the commission’s 25th anniversary world press briefing  in Asaba, Delta State.
He stated that the commission has equipped and trained farmers in the region on best practices, adding that it has also established Niger Delta Chambers of Commerce with a commitment of N30 billion, but has released N5 billion to encourage commerce and entrepreneurship in the area.
According to him, agriculture is among the next phase of the commission’s programmes aimed at addressing food security in the region.
“Our target is to use agriculture to fight criminalities in the Niger Delta region”, he said.
The NDDC boss said the commission would hold a retreat to marshal plans to enhance the cultivation of rice, oil palm, cassava, and maize for industrialisation.
He also disclosed that its fund allocation from the Federal Government has improved, adding that funding from International Oil Companies has also increased, with greater compliance.
Ogbuku revealed that although its revenue has improved, the commission had thought it wise not to borrow but to deploy the surplus to execute more projects.
According to him, the commission has gone digital in its documentation and data generation to address its human capital development projects, ensuring the even deployment of resources, which allows people to take turns being trained in their chosen profession.
He stated that the NDDC was committed to addressing environmental challenges in erosion-prone areas in Edo, Delta, and other states, contingent upon the availability of funds.
Continue Reading

Business

Replace Nipa Palms With Mangroove In Ogoni, Group Urges FG, HYPREP

Published

on

A concerned group of stakeholders under the auspices of Khana Coastal Communities has made a passionate appeal to the Federal Ministry of Environment and the Hydrocarbon Remediation Restoration Project (HYPREP) to include the removal of Nipa palms which has taken over the positions of mangroves in the area as part of the ongoing Ogoni Clean Up Exercise.
The group, which decried the invasive and destructive effects of Nypa fructicans, commonly known as Nipa palms, on the ecosystem of the affected communities, made their appeal in a Press Statement issued shortly after the  inspection and survey of the creeks and coastlines of  affected communities.
The communities are Kwiri, Kereken, Kaa, Gwara, Sii, Kpean, Tehnnama, Bane, Kalaoku, and Opuoku, all in Khana Local Government Area of Ogoni, Rivers State.
Signed on behalf of the affected communities by comrades Emmanuel Goteh Bie, Raymond Nwibani, and Chief Barineka Tonwe, the statement emphasized the need for urgent intervention to clear the Nypa fructicans and replace them with mangroves which provided sustainable habitat for aquatic species in the affected communities.
The group commended the Federal Ministry of Environment and HYPREP for their commitment to the Ogoni cleanup process and urged all stakeholders involved in the process not to renege on their complementary roles.
The statement read in part: “As you have seen, the Nypa fructicans has taken over our creeks, displacing native mangroves and aquatic life. The impact on our communities has been severe, with many of our people struggling to make a living due to the depletion of fish and other aquatic resources.
“We commend the Hydrocarbon Pollution Remediation Project (HYPREP) for its efforts in restoring native mangroves in Ogoni, particularly in the Bomu Community. However, we are alarmed by the unintended consequences of removing invasive Nypa fructicans, which has led to the disappearance of fish and aquatic life, threatening the livelihoods of our coastal communities.
“We believe that the removal of Nypa fructicans and replanting of native mangroves will help revive our aquatic life and sustain the livelihoods of our people.”
The group passed a vote of confidence on the Minister of Environment, Balarabe Abbas, and HYPREP Coordinator, Prof. Nenibarini Zabbey, for what it described as their unwavering efforts in ensuring the success of the Ogoni cleanup exercise.
They  called on the Federal Government to release their counterpart funding to HYPREP without delay to sustain the pace of progress recorded in the clean up process.
“The cleanup exercise is commendable, and any delay in funding could stall the progress and undermine the efforts of all stakeholders. We urge the government to prioritize the Ogoni cleanup exercise and provide the necessary support to ensure its success”, they stated.
They also used the opportunity to caution against the antics of self-inflicted activists or bodies that might attempt to hijack the cleanup agenda and create unnecessary agitation, and assured the total support of the affected  communities to HYPREP’s activities to enhance the holistic success of the Ogoni clean up exercise.
Bemene Taneh
Continue Reading

Trending