Nigerian Government Partners with UK Firm to Revitalize Dairy Sector
The Nigerian Sovereign Investment Authority (NSIA) has formalized a partnership with UK-based Asset Green Ltd. through a Memorandum of Understanding (MoU) aimed at developing an extensive integrated dairy production and processing platform. This significant collaboration is set to transform Nigeria’s dairy industry, enhancing the nation’s food security in the process.
Signed in London prior to a state visit, the MoU delineates the framework for collaboration, including commitments related to project development costs that will pave the way for a formal shareholder agreement.
This venture marks one of the most ambitious integrated dairy investments ever undertaken in Nigeria. The initiative involves utilizing 20,000 hectares of climate-smart regenerative crop and feed production coupled with a sophisticated dairy operation housing 10,000 milking cows. A cutting-edge processing plant will also be established, capable of producing fresh and powdered milk, butter, cream, and up to 15,000 tonnes of infant formula annually.
The project aims to lessen Nigeria’s reliance on imported milk powder, modernize agricultural practices, and enhance nutrition. It plans to integrate as many as 10,000 rural households into the supply chain through a comprehensive outgrower scheme. Upon becoming operational, the platform is anticipated to yield over $620 million annually while creating 2,500 direct jobs and an additional 5,000 indirect jobs across the country.
British Deputy High Commissioner Johnny Baxter expressed support, highlighting that over a decade ago, the UK played a pivotal role in the establishment of the NSIA. The UK provided essential legal and financial expertise, establishing a strong foundation for a resilient Nigerian institution that can generate returns, create employment, and drive transformative development. He noted that the NSIA’s partnership with Asset Green exemplifies the positive impact of this initial investment and the ongoing economic cooperation between the UK and Nigeria.
NSIA Managing Director and CEO Aminu Umar Sadiq expressed enthusiasm for the innovative partnership with Asset Green, calling it one of the most ambitious initiatives aimed at bolstering food and nutrition security in Africa. He emphasized the importance of combining climate-smart agriculture with advanced processing capabilities and significant participation from external producers to build a modern and competitive dairy sector that reduces import dependence, creates meaningful jobs, and delivers lasting value for Nigerians.
Rod Bassett, Director of Asset Green and CEO of Agrium Capital, highlighted the transformative potential of the partnership, stating that it will unlock significant opportunities within Nigeria’s agricultural sector by developing a future-forward dairy food system. He noted that innovation is critical to their approach, with a shared vision for establishing a platform that aligns with Nigeria’s strategic priorities. Bassett also underscored that the proposed $500 million greenfield investment will enhance local production capabilities, reduce the reliance on substantial dairy imports, and contribute to environmental sustainability and food sovereignty in Nigeria.
