A major consolidation is underway in West Africa’s food and agribusiness sector as Tropical General Investments Group and Singapore-based Wilmar International have agreed to merge their Nigerian and Republic of Benin operations into a 50:50 joint venture targeting a combined market estimated at $12bn.
The transaction brings together two established players in agriculture and consumer goods, with the aim of building a fully integrated food and agriculture platform spanning oil palm cultivation, edible oils, speciality fats, rice production, edible nuts, food manufacturing, and nationwide distribution.
According to both companies, the merger is designed to significantly expand production capacity, strengthen supply chains, and deepen market penetration across one of Africa’s fastest-growing consumer regions.
Integrated Platform Aimed at Expanding Consumer Reach
Wilmar International said the partnership reflects its long-term strategy to strengthen its footprint in Africa’s food economy while leveraging local partnerships to scale operations.
Chairman and Chief Executive Officer of Wilmar International, Mr Kuok Hong, described Nigeria and Benin as strategic consumer hubs with strong growth potential.
He said, “Nigeria and the Republic of Benin are key consumer markets in Africa. The combination of Wilmar’s integrated palm oil and speciality fatsoup’s manufacturing scale, established consumer brands and nationwide distribution platform creates a uniquely positioned business to serve consumers and contribute to the long-term development of the region.”
The deal is expected to combine Wilmar’s global supply chain expertise with TGI Group’s entrenched manufacturing and distribution networks across West Africa.
Decades of Local Investment Meets Global Scale
For TGI Group, the agreement builds on more than four decades of operations in Nigeria’s food manufacturing and distribution sector, where the company has developed strong local brand presence and extensive logistics infrastructure.
Founder and Chairman of TGI Group, Cornelis Vink, said the partnership represents a natural alignment of strengths between both organisations.
He said, “For more than four decades, TGI Group has built a leading position in Nigerian food manufacturing and distribution. This partnership will leverage Wilmar’s global scale and expertise as well as TGI’s local knowledge to deliver innovative food solutions across Africa.”
The collaboration is expected to accelerate product development, improve efficiency in sourcing raw materials, and expand access to affordable food products across the region.
Job Creation, Food Security and Local Value Addition
Beyond commercial expansion, the companies emphasised the broader economic implications of the merger, particularly in relation to employment, agricultural development, and food security.
Vice Chairman of TGI Group, Farouk Gumel, said the joint venture signals strong confidence in Nigeria’s long-term economic outlook and investment climate.
He said, “By integrating Wilmar’s capabilities with TGI Group’s manufacturing scale and local market expertise, we are building a platform that will deepen domestic value addition, support smallholder farmers, create jobs and contribute meaningfully to Nigeria’s food security.”
The integration is expected to strengthen linkages with local farmers, particularly in oil palm production, while expanding industrial processing capacity within Nigeria and Benin.
Strategic Fit Across Supply Chain and Distribution
Wilmar’s Africa Head, Santosh Pillai, also described the deal as a complementary partnership that enhances operational efficiency and market reach across the region.
He said, “TGI Group brings strong local execution capabilities, established consumer brands and a deep distribution network. Together, we are creating an integrated platform with the scale, local insight, and operating depth to better serve consumers in Nigeria and the Republic of Benin.”
Industry observers say the combination could help address longstanding challenges in Africa’s agribusiness sector, including fragmented supply chains, limited processing capacity, and dependence on imported food products.
Regulatory Approval and 2026 Completion Timeline
Both companies confirmed that the transaction remains subject to regulatory approvals and customary closing conditions. The deal is expected to be finalised during the 2026 financial year.
If completed, the joint venture would rank among the largest integrated food and agriculture platforms in West Africa, potentially reshaping competition across edible oils, packaged foods, and agricultural processing industries.