Manny Ita –
The Nigeria Sovereign Investment Authority (NSIA) has signed a deal with UK-based Asset Green Ltd to develop a $500 million large-scale dairy project in Nigeria, in a move aimed at reducing the country’s dependence on dairy imports and strengthening domestic production.
The agreement was confirmed in a statement issued by NSIA following the signing of a Memorandum of Understanding in London. The partnership is expected to enhance food security while expanding local capacity across the dairy value chain.
NSIA Managing Director and Chief Executive Officer, Aminu Umar-Sadiq, described the initiative as a landmark investment, stating, “NSIA is pleased to partner with Asset Green on this transformative investment. With a project size of almost US$500 million, this is one of the most ambitious initiatives aimed at strengthening Nigeria’s food and nutrition security in a generation.”
Rod Bassett, Director at Asset Green Ltd and Chief Executive Officer of Agrium Capital, said the collaboration reflects the scale of innovation required to unlock Nigeria’s agricultural potential and reduce reliance on imported dairy products.
British Deputy High Commissioner, Jonny Baxter, noted that the agreement underscores the impact of sustained institutional cooperation between the United Kingdom and Nigeria in driving long-term development.
The project is structured as a fully integrated dairy platform designed to modernise agricultural practices and improve efficiency, combining large-scale farming, processing, and distribution within a single ecosystem.
It will cover approximately 20,000 hectares dedicated to climate-smart crop and forage production, alongside a 10,000-milking-cow dairy operation. The development will also include a processing facility capable of producing fresh milk, milk powder, butter, cream, and up to 15,000 metric tonnes of infant formula annually.
Up to 10,000 rural households are expected to be integrated into the supply chain through out-grower schemes, while the project is projected to generate about $620 million in annual revenue. It is also expected to create approximately 2,500 direct jobs and 5,000 indirect jobs nationwide.
NSIA stated that the initiative ranks among the most ambitious dairy investments in the country, with a focus on improving nutrition outcomes and reducing pressure on foreign exchange caused by heavy dairy imports.
The project aligns with broader efforts to strengthen Nigeria’s agricultural sector through climate-smart and technology-driven initiatives. The African Development Bank Group recently approved a $200 million loan to support the second phase of the National Agricultural Growth Scheme – Agro-Pocket programme, which expands access to quality inputs, modern farming technologies, and data-driven practices.
Agriculture remains a critical sector in Nigeria, employing about 38 percent of the workforce and contributing roughly a quarter of the country’s gross domestic product. However, challenges such as limited access to improved inputs, weak land tenure systems, low irrigation coverage, and climate-related pressures continue to constrain productivity.
The new dairy investment, alongside ongoing agricultural programmes, is expected to address these structural gaps while reinforcing the sector’s role in driving economic growth and food security.
