Tomato (Solanum lycopersicum) is one of the most widely consumed vegetables in Nigeria and a key ingredient in household cooking, food service, and industrial food processing. Despite being one of the largest producers of fresh tomatoes in Africa—with annual output estimated at over 3 million metric tonnes—Nigeria continues to depend heavily on imported tomato paste to meet domestic demand. This paradox highlights a major gap in local processing capacity and presents a strong investment opportunity, particularly in high-consumption regions such as South Eastern Nigeria.

The South East geopolitical zone—comprising Abia State, Anambra State, Ebonyi State, Enugu State, and Imo State—is one of Nigeria’s most densely populated and commercially active regions. With major urban centers such as Onitsha, Aba, Enugu, and Owerri, the region represents a large and consistent market for tomato-based products. Tomato paste is a staple in daily cooking, and demand remains strong across households, restaurants, hotels, and food vendors.

Currently, Nigeria imports a significant proportion of its tomato paste needs, with annual imports valued in the hundreds of millions of dollars. Local production is constrained by limited processing infrastructure, post-harvest losses, and weak supply chain integration. It is estimated that up to 40–50% of fresh tomatoes produced in Nigeria are lost annually due to poor storage, transportation, and processing capacity. Establishing a tomato paste processing plant in the South East would not only reduce these losses but also create value from surplus production and improve food availability.

Tomato paste is produced by processing fresh tomatoes into a concentrated form through washing, sorting, crushing, evaporation, and sterilization. The final product is a thick, shelf-stable paste packaged in sachets, cans, or tubes for retail and industrial use. Modern processing ensures product consistency, long shelf life, and compliance with food safety standards.

The proposed project involves the establishment of a tomato paste processing plant with an installed capacity of 5–10 tonnes of fresh tomatoes per day, operating at about 70–80% capacity utilization for approximately 300 working days annually. The plant will source fresh tomatoes from both local farmers within the South East and nearby producing regions in North Central Nigeria, ensuring a steady supply of raw materials throughout the year.

The processing facility will incorporate modern equipment for washing, pulping, concentration, sterilization, and packaging. Finished products will be distributed in various formats, including sachets and cans, targeting both retail consumers and bulk buyers such as restaurants and food processors.

The market potential for tomato paste in South Eastern Nigeria is substantial. With Nigeria’s population exceeding 220 million people and growing at about 2.5–3% annually, consumption of processed food products continues to increase. The South East, with its vibrant commercial activities and high population density, provides a ready market for locally produced tomato paste. Additionally, proximity to major markets reduces distribution costs and improves product freshness and availability.

From a financial perspective, the project is highly viable. It benefits from strong and consistent demand, availability of raw materials, and opportunities for import substitution. By producing locally, the business can offer competitive pricing compared to imported brands while maintaining quality. Revenue streams will come from the sale of packaged tomato paste, with potential for expansion into related products such as tomato puree and sauces.

Beyond profitability, the project delivers significant economic and social benefits. It reduces post-harvest losses, supports local farmers by providing a reliable market, creates employment across the value chain, and contributes to Nigeria’s efforts to achieve food security and industrialization. It also aligns with government policies aimed at promoting local manufacturing and reducing reliance on imports.

Establishing a tomato paste production plant in South Eastern Nigeria is a highly viable and strategic investment opportunity. With strong market demand, abundant raw materials, and significant gaps in local processing capacity, the project is well-positioned to deliver sustainable returns while contributing to the growth of Nigeria’s agro-processing sector.

EXECUTIVE SUMMARY

1.0 Business Overview

1.1 Description of the Business

1.2 Vision and Mission Statement

1.3 Business Objective

1.4 Value Proposition

1.5 Critical Success Factor of the Business

1.6 Current Status of Business

1.7 Description of the Business Industry

1.8 Contribution to Local and National Economy

2. Marketing Plan

2.1 Description of the Products

2.2 Product Packaging and Delivery

2.3 The Opportunity

2.4 Pricing Strategy

2.5 Target Market

2.6 Distribution and Delivery Strategy

2.7 Promotional Strategy

2.8 Competition

3. Production Plan

3.1 Description of the Location

3.2 Raw Materials

3.3 Production Facilities and Equipment

3.4 Production Process

3.5 Production Cost

3.6 Stock Control Process

3.7 Pre-Operating Activities and Expenses

3.7.1 Operating Activities and Expenses

3.8 Project Implementation Schedule

4.0 Organizational and Management Plan

4.1 Ownership of the Business

4.2 Profile of the Promoters

4.3 Key Management Staff

4.3.2 Management Support Units

4.4 Details of Salary Schedule

5. Financial Plan

5.1 Financial Assumption

5.2 Start-Up Capital Estimation

5.3 Source of Capital

5.4 Security of Loan

5.5 Loan Repayment Plan

5.6 Profit and Loss Statement

5.7 Cash flow Statement

5.8 Viability Analysis

6.0 Business Risks, Mitigation Strategies and SWOT Analysis

6.1 Business Risks and Mitigation Strategies

6.2 SWOT Analysis