Tomato Jos Secures $2.5m EU-Backed Investment to Expand Nigerian Tomato Production

Tomato Jos Inc., a vertically integrated tomato farming and processing company in northern Nigeria, has secured a $2.5 million investment from the European Union-funded Agriculture Financing Initiative (AgriFI) to expand production, processing and its network of smallholder farmers.

The investment, structured as a convertible note, was signed by EDFI Management Company (EDFI MC) through the AgriFI ACP Regional Window.

The funding will support the acquisition of packaging equipment, factory upgrades and the expansion of drip irrigation systems. It will also enable the company to introduce new product formats and reach additional markets, including business-to-business and hospitality customers.

More than half of the company’s raw materials are currently sourced from smallholder farmers in Kaduna State. The investment is expected to reduce energy and production costs, strengthen local tomato processing and help minimise post-harvest losses.

EU Ambassador to Nigeria and ECOWAS, Gautier Mignot, said the investment would support local value creation across the tomato supply chain while expanding opportunities for smallholder farmers, particularly women.

Tomato Jos plans to increase its annual fresh-tomato production from just over 4,500 tonnes to approximately 16,000 tonnes by 2029. The company also aims to expand its smallholder farmer network from about 500 to 1,500 farmers over the same period.

It is targeting an increase of more than 150 per cent in income per farmer between 2024 and 2029. The planned expansion is also expected to strengthen Nigeria’s tomato processing capacity and reduce reliance on imported tomato products through increased local production of tomato paste.

Tomato Jos Chief Executive Officer, Mira Mehta, said the funding would support expansion, reduce energy costs and the company’s carbon footprint, while creating more reliable economic opportunities for farming communities.

The company expects the investment to help attract a further $6 million equity round in 2028, representing an anticipated leverage factor of 3.2 times.

The investment comes as Nigeria seeks to attract more private capital into agriculture, strengthen domestic food processing and reduce losses between farms and consumers. If its projected targets are achieved, the expansion could also benefit farmers, processors, logistics operators and other businesses across the tomato value chain.