Nigeria dairy investment food security gains momentum as NSIA signs $500m UK-backed dairy deal to boost local milk production and reduce imports

Nigeria has taken a significant step toward strengthening domestic food production and reducing dependence on imports with the signing of a major dairy investment agreement designed to transform the country’s agricultural sector.

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The Nigeria dairy investment food security initiative was formalised through a memorandum of understanding between the Nigeria Sovereign Investment Authority (NSIA) and Asset Green Limited, a United Kingdom-based private investment group, in London ahead of President Bola Ahmed Tinubu’s state visit.

The deal outlines plans for an integrated dairy production and processing platform expected to become one of the most ambitious agricultural investments in Nigeria’s history, according to the British High Commission Nigeria.

Once fully developed, the project will combine 20,000 hectares of climate-smart forage cultivation with a 10,000-milking cow operation and a modern processing facility.

The plant is expected to produce fresh milk, butter, cream, milk powder, and up to 15,000 metric tonnes of infant formula annually.

Officials say the initiative is designed to reduce Nigeria’s heavy reliance on imported milk powder while modernising livestock production systems and expanding local value chains.

A key feature of the project includes integrating up to 10,000 rural households into the supply network through out-grower schemes, a move expected to promote inclusive agricultural development and strengthen rural economies.

The platform is projected to generate more than $620 million annually at full scale, while creating around 2,500 direct jobs and 5,000 indirect employment opportunities across the country.

British Deputy High Commissioner to Nigeria, Jonny Baxter, described the agreement as evidence of long-standing economic cooperation between both nations, noting the United Kingdom’s earlier support in establishing the NSIA through legal and financial expertise.

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, combining climate-smart agriculture with industrial-scale processing to build a more competitive and sustainable industry.

Rod Bassett, Director at Asset Green and Chief Executive Officer of Agrium Capital Ltd., said the project would unlock Nigeria’s agricultural potential by improving local production capacity and strengthening food sovereignty.

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The initiative reflects Nigeria’s broader economic diversification strategy, with authorities increasingly focusing on agro-industrial development, food security, and deeper international investment partnerships.