Olufemi Adeyemi

Nigeria is stepping up efforts to strengthen domestic food production and reduce reliance on imports, following a new agreement to develop a large-scale dairy platform aimed at transforming the country’s agricultural landscape.

The Nigeria Sovereign Investment Authority (NSIA) has signed a memorandum of understanding with Asset Green Limited, a United Kingdom-based private investment group, to establish an integrated dairy production and processing operation in the country.

The agreement, signed in London ahead of President Bola Tinubu’s state visit to the UK, outlines a framework for collaboration that is expected to culminate in a formal shareholders’ agreement as the project progresses.

According to the British High Commission Nigeria, the initiative is one of the most ambitious dairy investments in Nigeria to date and is expected to significantly boost national food security.

At full scale, the project will combine 20,000 hectares of climate-smart forage production with a 10,000-milking cow operation, alongside a processing facility capable of producing a wide range of dairy products, including fresh milk, butter, cream, milk powder, and up to 15,000 metric tonnes of infant formula annually.

Officials say the development is designed to reduce Nigeria’s heavy dependence on imported milk powder while modernising agricultural practices. It will also integrate up to 10,000 rural households into the supply chain through out-grower schemes, promoting inclusive growth across farming communities.

Once operational, the platform is projected to generate more than $620 million annually and create approximately 2,500 direct jobs and 5,000 indirect employment opportunities nationwide.

British Deputy High Commissioner to Nigeria, Jonny Baxter, described the partnership as a reflection of long-standing economic ties between both countries. He noted that the UK had supported the establishment of the NSIA over a decade ago by providing legal and financial expertise, helping to build a resilient institution capable of driving long-term development.

Albrecht Frischenschlager, group CIO, at United Green Group, with Aminu Umar-Sadiq, MD and CEO of NSIA, at the signing ceremony, on March 17, 2026 in London
Managing Director and Chief Executive Officer of NSIA, Aminu Umar-Sadiq, said the nearly $500 million investment represents a transformative step for Nigeria’s dairy sector. He highlighted that the combination of climate-smart farming, advanced processing, and inclusive participation would help create a competitive and sustainable industry.

Also commenting, Rod Bassett, director at Asset Green and CEO of Agrium Capital Ltd., said the project would unlock Nigeria’s agricultural potential by boosting local production, developing critical infrastructure, and enhancing food sovereignty.

The initiative underscores a broader push by Nigerian authorities to diversify the economy, strengthen agro-industrial capacity, and improve nutritional outcomes, while deepening bilateral cooperation with the United Kingdom in agriculture and investment.