The European Union-funded Agriculture Financing Initiative (AgriFI) has committed a $2.5 million investment to Tomato Jos Inc., a northern Nigeria-based tomato farming and processing company, to expand local processing, climate-smart production and its engagement with smallholder farmers.

The investment, made through a convertible note by EDFI Management Company (EDFI MC) 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 that combines 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.

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

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"Through the EU-funded AgriFI ACP Regional Window, this investment in Tomato Jos supports a Nigerian business that is creating local value from farm to shelf, reducing post-harvest losses and expanding market opportunities for smallholder farmers, particularly women," Mignot said.

He added that the initiative was "a practical example of how the European Union works with partners to mobilise sustainable private investment in inclusive and climate-smart agriculture."

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.

EDFI MC Chief Executive Officer, Rodrigo Madrazo, said Tomato Jos' integrated model linked farmers with reliable markets while providing access to land, irrigation, inputs and technical support.

"AgriFI's investment through the ACP Regional Window will enable targeted investments in drip irrigation and packaging capacity, helping to expand the product offer, reduce production costs, and catalyse further private investment for its next stage of growth," Madrazo said.

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 per cent between 2024 and 2029.

Chief Executive Officer of Tomato Jos Inc., Mira Mehta, said the financing would support the company's efforts to build a more resilient tomato value chain in northern Nigeria.