Nigerian investment agency partners with British company on $496 million livestock dairy deal

The Nigeria Sovereign Investment Authority, NSIA, has entered into a Memorandum of Understanding, MoU, with UK-based Asset Green Ltd, marking a significant step towards transforming Nigeria's dairy industry and bolstering national food security through a large-scale integrated dairy livestock production and processing platform. This platform is anticipated to yield over US$620 million in annual revenue and create 2,500 direct and 5,000 indirect jobs across the country.

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Signed on Tuesday in London, prior to President Bola Tinubu's State Visit, the MoU delineates the collaborative framework and project-development cost commitments that will precede the formal shareholders' agreement.

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The initiative, as described by the British High Commission, represents one of the most ambitious integrated dairy investments in Nigeria's history, combining 20,000 hectares of climate-resilient crop and forage production with a state-of-the-art dairy operation and processing plant.

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This project is designed to produce fresh milk, milk powders, butter, cream, and up to 15,000 metric tonnes of infant formula annually, supported by a modern 10,000 milking cow dairy operation, thereby reducing Nigeria's reliance on imported milk powder.

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The project aims to modernise agricultural practices, enhance nutrition, and integrate up to 10,000 rural households into the supply chain through inclusive out-grower schemes, ultimately strengthening national food security.

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British Deputy High Commissioner, Jonny Baxter, noted that the UK's early support for the NSIA has yielded long-term benefits, enabling the institution to drive transformational development and create jobs, as exemplified by the NSIA and Asset Green partnership.

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This partnership, according to Baxter, demonstrates the long-term economic cooperation between the UK and Nigeria, as well as their shared commitment to fostering sustainable, private-sector-driven growth.

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NSIA Managing Director & CEO, Aminu Umar-Sadiq, expressed enthusiasm for the partnership with Asset Green, highlighting the project's transformative potential, with a project size of almost US$500 million, to strengthen Nigeria's food and nutrition security.

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Umar-Sadiq noted that the project will combine climate-smart farming, advanced processing capacity, and inclusive out-grower participation to establish a modern, competitive dairy sector that reduces import dependence, creates meaningful jobs, and delivers long-term value for Nigerians.

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Asset Green Ltd Director & Agrium Capital Ltd CEO, Rod Bassett, emphasized that the partnership between NSIA and Asset Green represents the business and investment innovation required to unlock the potential of Nigeria's agriculture sector.

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Bassett highlighted the importance of collaborating with NSIA to establish a platform that catalyzes the development of a national strategic priority, such as the dairy industry, and expressed pride in partnering with Nigeria's premier investment institution.

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The US$500 million greenfield investment in Nigeria's dairy industry, according to Bassett, will enable the development of advanced infrastructure, enhance local production, reduce reliance on dairy imports, deliver environmental services, and strengthen national food sovereignty and nutritional resilience.