The Nigeria Sovereign Investment Authority (NSIA) has inked a Memorandum of Understanding (MoU) with UK-based Asset Green Ltd, aimed at advancing the establishment of a large-scale integrated dairy livestock production and processing facility that promises to revolutionize Nigeria’s dairy landscape while promoting food security in the nation.
The MoU, signed in London yesterday, sets out the framework for collaboration, alongside the financial commitments necessary for project development, culminating in a formal shareholders’ agreement.
This initiative is touted as one of the most ambitious integrated dairy investments ever initiated in Nigeria. The project encompasses 20,000 hectares dedicated to climate-smart and regenerative crop and forage production, paired with a state-of-the-art dairy operation featuring 10,000 milking cows. Additionally, it includes a cutting-edge processing facility capable of generating fresh milk, milk powders, butter, cream, and producing up to 15,000 metric tonnes of infant formula each year.
The objective of this initiative is to decrease Nigeria’s dependency on imported milk powder. It is set to modernize agricultural methodologies, enhance nutritional quality, and involve around 10,000 rural households within the supply chain through inclusive out-grower schemes. Upon completion, the platform is anticipated to yield over $620 million annually while providing approximately 2,500 direct and 5,000 indirect job opportunities across the country.
British Deputy High Commissioner Jonny Baxter remarked, "Over ten years ago, the UK played a vital role in assisting Nigeria to establish the NSIA, providing legal and financial expertise that was crucial for its successful inception and enhancing its governance framework. That initial investment has contributed significantly to the establishment of a resilient Nigeria-focused institution capable of generating employment and fostering substantial long- term development."
He continued, "The partnership between NSIA and Asset Green exemplifies how the groundwork laid in previous years continues to yield positive outcomes—it reflects the enduring economic ties between the UK and Nigeria, underlined by our mutual commitment to fostering sustainable growth driven by the private sector."
Commenting on the partnership, NSIA’s Managing Director and CEO, Aminu Umar- Sadiq, stated, "We are excited to team up with Asset Green on this transformative project. With an estimated budget nearing $500 million, this initiative stands as one of the most significant efforts to fortify Nigeria’s food and nutrition security in a generation. By merging climate-smart agricultural practices with advanced processing capabilities and empowering local farmers through inclusive practices, we are setting the stage for a modern, competitive dairy sector that minimizes import reliance and stimulates job creation, delivering lasting benefits to Nigerians."
Meanwhile, Rod Bassett, Director of Asset Green Ltd and CEO of Agrium Capital Ltd, expressed, "The alliance between NSIA and Asset Green embodies the innovative business and investment strategy needed to unlock the agricultural sector's potential in Nigeria and develop a sustainable future dairy production system. Our approach heavily emphasizes collaboration with NSIA, embracing a shared vision to establish a platform aligned with this major national strategic goal. We take immense pride in partnering with Nigeria's leading investment body."
He further added, "Historically, the development of greenfield projects has played a crucial role in our journey, laying the groundwork for industries or nurturing budding businesses that can drive significant change. This $500 million investment targets Nigeria's dairy sector, facilitating the creation of essential infrastructure throughout the production and supply chain, ultimately enhancing local manufacturing, reducing reliance on substantial imports of dairy products, providing environmental benefits, and strengthening the country's food sovereignty and nutritional resilience.
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