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HomeBusinessUpdate: Nigeria's Kaduna State sells tomato processing plant to Sanni Dangote firm

Update: Nigeria’s Kaduna State sells tomato processing plant to Sanni Dangote firm

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The Kaduna State government has sold its tomato processing plant at an undisclosed amount to Sanni Dangote company in a bid by the state to sell off assets to free up funds for spending.

Sources within the Dangote Group said the deal was struck between the state and the younger brother of Africa’s richest man, Aliko Dangote who is active in cement, oil, food and sugar businesses, and is also expanding into farming. In 2016, Dangote started a tomato factory in Kano.

“As state governments we have very little choice,” said Kaduna state governor Nasir El-Rufai, referring to fiscal constraints.

“We are running out of options to borrow and the federal government cannot bail us out forever,” he told a virtual conference on the privatisation of state assets.

Nigeria, Africa’s most populous country and the continent’s biggest oil producer, is tilting towards recession after the COVID-19 pandemic triggered a collapse in global oil prices, hammering returns from the country’s main export.

The country is in the process of accessing a $750 million World Bank loan to enable local states to support vulnerable households and mitigate the effects of the COVID-19 pandemic on the economy.

READ ALSO: Nigeria parliament to pass Petroleum Bill in six months ~HoR Speaker

Nigeria imports up to 400,000 tonnes of tomato paste annually. The tinned paste is an ingredient in Nigerian tomato stew, used as a base for a host of traditional meat stews, sauces, soups and rice dishes that are staples of Nigerian cooking.

~With Reuters report

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