Nigeria’s sovereign wealth fund has signed a deal with a UK-based firm to develop a large-scale dairy production platform, in a move aimed at reducing import dependence and strengthening food security in Africa’s most populous nation.
The Nigeria Sovereign Investment Authority said it had entered into a memorandum of understanding with Asset Green Ltd to establish an integrated dairy livestock and processing project valued at nearly $500 million.
The agreement, signed in London ahead of a state visit, sets out a framework for collaboration and outlines commitments for project development costs pending a final shareholders’ agreement.
The planned platform will combine large-scale farming with industrial processing capacity, marking one of the most ambitious dairy investments in Nigeria to date. It will cover about 20,000 hectares of land dedicated to climate-smart crop and forage production, alongside a dairy operation with up to 10,000 milking cows.
A processing facility will also be built to produce a range of dairy products, including fresh milk, milk powder, butter, cream and infant formula, with annual output expected to reach up to 15,000 metric tonnes of baby formula.
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Nigeria currently relies heavily on imports to meet its dairy needs, particularly powdered milk. Authorities say the project is designed to reduce that dependence while improving domestic production capacity and strengthening the agricultural value chain.
“This initiative represents a transformative investment in Nigeria’s food and nutrition security,” NSIA Managing Director Aminu Umar-Sadiq said, adding that the project would help modernise farming practices and build a competitive dairy sector.
The development is expected to generate more than $620 million in annual revenue once operational, while creating around 2,500 direct jobs and an additional 5,000 indirect roles across the country.
A key component of the project is an out-grower scheme that aims to integrate up to 10,000 rural households into the supply chain, providing farmers with access to markets, training and improved agricultural inputs.
British Deputy High Commissioner Jonny Baxter said the partnership reflected long-standing economic ties between Nigeria and the United Kingdom, highlighting the role previously played by the UK in supporting the establishment of the NSIA.
He described the agreement as a continuation of efforts to promote private-sector-led growth and sustainable development, adding that it demonstrated how earlier institutional support was translating into tangible economic outcomes.
Executives at Asset Green said the project would help unlock the potential of Nigeria’s agricultural sector by introducing advanced infrastructure and modern production systems across the dairy value chain.
The investment also incorporates climate-smart and regenerative farming practices, aligning with broader efforts to promote sustainability and environmental resilience in agriculture.
Analysts say the initiative could help address longstanding inefficiencies in Nigeria’s dairy industry, which is characterised by low productivity, fragmented supply chains and limited processing capacity.
By building an integrated system spanning production, processing and distribution, the project aims to improve efficiency and reduce reliance on imports, which have weighed on the country’s trade balance.
The agreement comes as Nigeria seeks to diversify its economy and boost domestic production in key sectors, including agriculture. Food security has become an increasing priority amid rising population growth and global supply chain disruptions.
While the project remains at the development stage, with feasibility and financing arrangements still to be finalised, it signals growing investor interest in Nigeria’s agribusiness sector.
If successfully implemented, the initiative could serve as a model for large-scale agricultural investments in the region, combining private capital, technology and inclusive participation to drive long-term growth.
