The Nigeria Sovereign Investment Authority (NSIA) on Wednesday signed a Memorandum of Understanding (MoU) with Asset Green Ltd in London to develop a large-scale, integrated dairy livestock and processing platform described as one of the most ambitious of its kind in Nigeria.
Signed ahead of the Nigerian president’s state visit to the United Kingdom, the agreement sets out the framework for collaboration and project-development funding ahead of a formal shareholders’ agreement.
The planned investment is designed to modernise Nigeria’s dairy value chain and reduce reliance on imported milk powder.
It will combine 20,000 hectares of climate-smart crop and forage production with a 10,000-cow dairy operation and a processing plant capable of producing fresh milk, butter, cream, milk powders and up to 15,000 metric tonnes of infant formula each year.
Project backers say the platform will integrate up to 10,000 rural households through inclusive out-grower schemes, while improving nutrition and agricultural productivity nationwide.
Once fully operational, it is expected to generate more than $620m in annual revenue and create about 2,500 direct and 5,000 indirect jobs.
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Speaking at the signing, British Deputy High Commissioner to Nigeria Jonny Baxter said the deal reflected the long-term economic cooperation between the two countries.
Baxter stated that early UK support for the establishment of the NSIA had helped build a resilient institution now capable of driving large-scale, transformational investments.
The NSIA’s managing director and chief executive, Aminu Umar-Sadiq, said the nearly $500m project would lay the foundation for a modern and competitive dairy sector.
“By combining climate-smart farming, advanced processing capacity and inclusive out-grower participation, we are reducing import dependence, creating meaningful jobs and delivering long-term value for Nigerians,” he said.
Asset Green director and Agrium Capital chief executive Rod Bassett described the partnership as the type of investment innovation needed to unlock Nigeria’s agricultural potential.
Bassett stressed the greenfield project would deliver critical infrastructure across the full dairy supply chain, strengthen food sovereignty and reduce the country’s heavy reliance on dairy imports.
The agreement was signed on the sidelines of the two-day state visit of Nigerian President Bola Tinubu to the UK, where he was received by King Charles III and Queen Camilla.
During the visit, Tinubu is also due to hold talks with UK Prime Minister Keir Starmer.