EU commits US$2.5M to expand tomato packaging in Nigeria

NIGERIA – The European Union-funded Agriculture Financing Initiative has committed a US$2.5 million investment to Tomato Jos Inc, financing packaging equipment, factory upgrades and expanded drip irrigation for tomato processing in northern Nigeria.

The investment, made through a convertible note by EDFI Management Company under the AgriFI ACP Regional Window, is expected to finance packaging equipment, factory upgrades and expanded drip irrigation while helping the company reduce energy and production costs.

Tomato Jos produces consumer-packaged tomato paste for the Nigerian market through an integrated model combining its own farming operations, smallholder sourcing and local processing. 

More than half of its raw materials are currently sourced from smallholder farmers in Kaduna State.

Investment Targets New Formats and Hospitality Customers

According to the company, the investment will also support expansion into new product formats and customer segments, including business-to-business and hospitality, restaurant and catering customers. 

This shift requires packaging capable of withstanding distribution through food service channels, where bulk formats and durable containers must protect product integrity across varied handling conditions. 

Packaging capacity expansion therefore underpins the company’s move beyond retail-only distribution.

Production Targets Rise to 16,000 Tonnes by 2029

Tomato Jos said it plans to increase annual fresh-tomato production from just over 4,500 tonnes currently to about 16,000 tonnes by 2029. 

The company also aims to increase the number of smallholder farmers it engages annually from about 500 to 1,500 within the same period, while raising income per farmer by more than 150 percent between 2024 and 2029. 

Scaling production at this pace depends on logistics infrastructure capable of moving raw tomatoes from farms to processing facilities before spoilage, alongside packaging lines able to handle increased finished goods volumes.

Leadership Cites Resilient Value Chain and Import Substitution

Gautier Mignot, EU Ambassador to Nigeria and ECOWAS, said the investment demonstrated how private financing could support more resilient agricultural value chains and create opportunities for farmers. 

He noted that the investment supported a Nigerian business creating local value from farm to shelf, reducing post-harvest losses and expanding market opportunities for smallholder farmers, particularly women. 

Rodrigo Madrazo, chief executive of EDFI MC, said the investment would enable targeted spending on drip irrigation and packaging capacity, helping expand the product offer and reduce production costs. 

Mira Mehta, chief executive of Tomato Jos, said the financing would support efforts to build a more resilient tomato value chain in northern Nigeria, reducing energy costs and carbon footprint. 

The investment is expected to catalyse a further US$6 million equity round in 2028, representing a leverage factor of 3.2 times.

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