Nigeria Seals $496m UK-Backed Dairy Deal to Boost Food Security

Nigeria Seals $496m UK-Backed Dairy Deal to Boost Food Security

Nigeria has secured a $496 million investment agreement with a United Kingdom-based firm, Asset Green Ltd, in a major push to strengthen food security, cut dairy imports, and modernise the country’s agricultural value chain.

The deal, formalised through a Memorandum of Understanding, was signed in London between the Nigeria Sovereign Investment Authority (NSIA) and Asset Green Ltd ahead of an official state engagement.

At the heart of the agreement is the development of a large-scale, integrated dairy livestock production and processing platform designed to boost local capacity and meet rising demand for dairy products.

Under the plan, the project will span 20,000 hectares of climate-smart farmland and include a 10,000-milking cow dairy operation, alongside a state-of-the-art processing facility.

The plant is expected to produce a range of products, including milk, butter, cream, milk powder, and up to 15,000 metric tonnes of infant formula annually.

Beyond production, the initiative is expected to drive inclusion by integrating about 10,000 rural households into the dairy value chain through out-grower schemes, while creating an estimated 2,500 direct and 5,000 indirect jobs across the country.

Managing Director of NSIA, Aminu Umar-Sadiq, described the investment as a landmark step toward transforming Nigeria’s dairy industry.

“NSIA is pleased to partner with Asset Green on this investment. With a project size of almost $500 million, this stands as one of the most ambitious efforts to strengthen Nigeria’s food and nutrition security in a generation,” he said.

He added that the integration of climate-smart agriculture, advanced processing capacity, and inclusive participation would help build a modern and competitive dairy sector capable of reducing reliance on imports while delivering long-term economic value.

Also speaking, Director at Asset Green Ltd and Chief Executive Officer of Agrium Capital Ltd, Rod Bassett, said the partnership represents a significant step in unlocking Nigeria’s agricultural potential.

“This collaboration is the kind of investment innovation needed to catalyse growth in Nigeria’s agriculture sector and develop a future-ready dairy system,” he noted.

Bassett added that the greenfield investment would strengthen infrastructure across the production chain, enhance local output, and improve the country’s food sovereignty and nutritional resilience.

In his remarks, the British Deputy High Commissioner to Nigeria, Jonny Baxter, highlighted the enduring economic ties between both countries, noting that the project reflects years of sustained cooperation.

“Over a decade ago, the UK supported the establishment of the NSIA, helping to build a resilient institution capable of driving long-term development. This partnership demonstrates how that foundation continues to deliver impact,” he said.

The agreement is expected to play a key role in reducing Nigeria’s dependence on imported dairy products while strengthening local production capacity and supporting broader economic growth.