Tomato Jos Secures $2m to Expand Local Tomato Processing in Nigeria

Kaduna-based agribusiness Tomato Jos Farming and Processing Limited has secured a $2 million impact-linked debt facility from Sabou Capital to expand its processing operations and strengthen its network of smallholder farmers.

The financing is denominated in naira and links Sabou Capital’s financial returns to the social and economic outcomes achieved by Tomato Jos. The company plans to use the funding to increase processing capacity, expand its farmer network and grow its share of Nigeria’s tomato paste market.

Building Nigeria’s Local Tomato Supply Chain

Founded in 2014 by Mira Mehta, Tomato Jos operates a vertically integrated business covering tomato farming, sourcing, processing and branded products.

The company runs a farm in Kangimi, Kaduna State, alongside a $5 million processing facility. Its supply network includes more than 3,000 smallholder farmers, while the business directly employs 204 people. Women account for about 60% of its smallholder farmer network.

Mehta started Tomato Jos after seeing large quantities of tomatoes go to waste during a glut in northern Nigeria. The situation highlighted a gap in Nigeria’s food supply chain: despite being a major tomato producer, the country relied heavily on imported tomato paste.

Historically, imports supplied as much as 90% of Nigeria’s processed tomato demand, according to Sabou Capital. The country consumes more than 2.3 million tonnes of fresh tomatoes each year, creating a large domestic market for processors that can consistently turn local tomatoes into shelf-stable products.

Funding Comes as Import Rules Change

The investment comes as Nigeria’s government moves to restrict tomato paste imports, creating more room for domestic processors.

For Tomato Jos, the policy change creates an opportunity to increase production and supply a market that has traditionally depended on imported products. Sabou Capital said the company’s existing processing facility and farmer network give it a base from which to expand.

Sabou Capital Managing Partner Surayyah Ahmad said the deal is designed around both commercial and economic outcomes, with the financing structure linking returns to the impact created by the business.

Tomato Jos founder and CEO Mira Mehta said the company still faces strong competition from larger international businesses, making access to suitable growth capital important as it expands.

Targeting 10% Market Share

Tomato Jos plans to use the financing to increase its processing capacity while expanding the number of farmers supplying the business.

The company is targeting at least 10% of Nigeria’s tomato paste market and wants at least half of its raw materials to eventually come from smallholder farmers.

That expansion would increase the volume of tomatoes moving through its local supply chain while giving more farmers access to a structured market for their produce.

The business also meets all four criteria under the 2X Challenge, a global framework used by development finance institutions to assess investments that advance women’s economic participation.

For Sabou Capital, the Tomato Jos deal is part of its focus on providing structured financing to growth-stage businesses in African markets where conventional capital can be harder to access. For Tomato Jos, the immediate task is turning the new financing into greater processing capacity, a larger farmer network and more locally produced tomato products for Nigerian consumers.