Economy
Olam Nigeria to Begin Tomato Paste Production, Acquires Land
By Modupe Gbadeyanka
The tomato value chain in the country recently received a boost with the acquisition of 20 hectares of land by Olam Nigeria for the purpose of setting up farms in Karfi, Kano State, as well as Masama and Guri, both located in Jigawa State solely for the production of tomatoes.
This in line with the federal government’s initiative to attain self-sufficiency in tomato production and processing. The land was acquired by Caraway Africa Nigeria Ltd, a subsidiary of Olam, a leading player in the Nigerian agriculture value chain, under its pilot farming project.
While the tomatoes were transplanted in October 2019, harvest commenced in February 2020 and Vice President of Olam Nigeria in charge of Farming Initiatives, Mr Reji George, said preliminary results point to a bountiful harvest.
He stated that each of the farms were on course to produce 30 metrics tons of tomato per hectare, as against the 7.5 metric tons per hectare which is Nigeria’s average yield for tomato.
Mr Reji added that the commercial pilot farming initiative, which Olam Nigeria is embarking upon through Caraway Africa Nigeria, is a precursor to a backward integration project for tomato paste production which will commence in March 2021.
A major challenge confronting the production of tomatoes in Nigeria is a lack of good variety seeds to buy. Another problem is extremely poor yields as low tomato production lead to higher prices, thereby making it unattractive for processors to purchase.
These challenges are also linked to the unwillingness of farmers to produce tomatoes in large quantity because they want to avoid product decay and losses because of lack of proper storage and preservation facilities.
Addressing the challenge of poor tomato seeds, Mr Reji said Olam has signed an MOU with the World Vegetable Centre, a globally renowned research institute and prominent seed producer and developer, for the supply of 18 varieties of seeds, exclusively for Caraway Africa Nigeria.
“We have also decided to go for an additional eight varieties of hybrid tomato seeds already existing in Nigeria which have a higher yield potential, but which the farmers are not using because of the cost.
“We have selected tomato seed varieties which produce fresh tomatoes as well as the variants which are good for tomato processing,” he added.
The tomatoes, which are being currently harvested at the Caraway Africa Nigeria Kano and Jigawa farms, are considered to be of a higher quality than what is currently being produced by other farmers in terms of size, quality and weight. The tomatoes are products of the Nigerian hybrid seeds and the World Vegetable Centre seeds which were planted on a trial basis.
owner of Dogara Farms, Mr Uba Idris Dogara, who has been farming for 35 years, attested to the quality of the recently harvested tomatoes.
“I’m an old-time tomato farmer but the method Olam brought to this place is looking better than the previous method we were using. I have seen a lot of changes in their yields than what we have been getting before. There is a big improvement. This method is better than what we have seen,” the farmer said.
Farm Manager of the Masama Farm, Mr Emmanuel Agbo, and his counterpart at Abur Farm, Mr Mohammed Saulawa, both owned by Olam Nigeria and located in Jigawa State, said the quality of the tomatoes have attracted farmers who have visited their farms, curious to know about the farming methods that have produced such yields.
Speaking on the attraction, Mr Saulawa said, “They have seen the difference in terms of the fruit size and the agronomic practices that we have employed here which are not the conventional farming practices that they are used to.
“You can keep the tomato variety for a week without it getting spoilt, unlike what the farmers take to the market which decays by the second day. They have seen how we apply fertilizer and how we are consistent with our spray regime. They are visiting the farm to understudy and see how they can replicate these methods in their own farms.”
Mr Reji George added that Olam, through Caraway Africa Nigeria Limited, would soon commence a farmer’s outgrower programme as a means of supporting the farmers and also boosting tomato production in Nigeria.
According to him, 1,000 farmers will be engaged in the first year, while Olam plans to acquire about 500 hectares of land for the purpose which would kick off by September 2020. The first set of tomatoes from its farmer outgrower initiative would be ready for harvest by February 2021.
He added that the firm was in discussions with developmental organisations to build the capacities of the outgrower famers in the areas of tomato planting and cultivation.
According to him, the farmer outgrower programme would be modelled after the Olam Rice Outgrower initiative, which he described as the best outgrower scheme in Nigeria.
He further added that the tomatoes for the processing plant would be sourced through yields from its own commercial farms, yields from the farmers under its outgrower initiative and buying through agents in the open market.
Speaking on how to stem post-harvest losses, Mr Reji stated that the tomatoes would be taken to the firm’s processing facility on the same day of harvest.
By Adedapo Adesanya
The Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
