The Federal Government is partnering with military-linked investment institutions to attract billions of dollars into the agriculture sector.
According to the Federal Government, the move is aimed at ensuring food security.
The Managing Director, Ministry of Finance Incorporated (MOFI), Dr Armstrong Takang said this during a panel discussion at the 32nd Nigerian Economic Summit in Abuja on Tuesday.
He said that the initiative was to provide security for large-scale agricultural investments, restore investor confidence and increase local food production.
Takang said that the initiative could also help moderate food inflation by increasing domestic supplies.
He said that Nigeria needed to maximise its land, water and human resources to produce sufficient food for households and industries while expanding exports.
Takang said that (MOFI), Integranium Holdings and the Defence Agricultural Assets and Projects Development Company (DAPCO) were collaborating on the initiative.
He said that the partnership was supported by Defence Holding Company Limited, which sought to combine investment mobilisation with security and project management.
Takang identified PFI NPK, the Fertilizer Aggregation Company, as one of the businesses that could benefit from an expanded market.
He said that increased farming activities could improve soil productivity and boost food production.
Takang said that the partners also intend to extend investment benefits to communities hosting the projects.
The Executive Director of Investments MOFI, Dr Femi Ogunseinde, said that insecurity had discouraged investors from committing funds to large-scale agricultural projects.
He said the partnership would help reassure prospective investors that their investments and farming operations would receive adequate security.
“We have a soybean initiative in Yobe, we have a sugarcane initiative in Jigawa—all large-scale, all multibillion-dollar projects,” Ogunseinde said.
He said that attracting investors had been difficult without credible arrangements to protect their investments and agricultural operations.
Ogunseinde said that the partnership would provide a platform for engaging domestic and international investors interested in financing commercial agriculture.
He said that the initiative was designed to attract substantial private-sector and international funding rather than rely solely on public resources.
Ogunseinde highlighted potential investments of between one billion and two billion dollars, adding that the amounts were not funds already committed and the total investment value of the broader agreement was not disclosed.
According to him, the partners have identified several opportunities and expected at least one project to commence before the end of 2026.
He said that individual projects would undergo assessments covering financial viability, investment potential, due diligence and value for money before implementation.
Ogunseinde said that agreement was expected to cover risk management, security planning and project management, with DAPCO working alongside MOFI and its investment partners.
He said that Nigeria had estimated between 30 to 35 million hectares of land potentially available for farming.
Ogunseinde said that the partnership would help attract investors capable of combining land, capital, agricultural expertise and security arrangements to expand commercial farming.
He added that insecurity had contributed to abandoned farmlands, limiting Nigeria’s ability to produce sufficient food for domestic consumption.
Ogunseinde said that a successful programme would enable the partnership to contribute substantially to national food production.
He estimated that agriculture contributed between 25 per cent and 27 per cent of Nigeria’s Gross Domestic Product (GDP).
Ogunseinde said that expanding agricultural production could strengthen the sector’s contribution to economic growth, improve food security and create export opportunities.
He said that the initiative was also expected to increase demand for locally produced agricultural inputs, including fertilisers.
The Chairman and Chief Executive Officer of DAPCO, Aliyu Abdulhameed, said that the initiative would help channel financing into rural agricultural opportunities under secure and properly structured arrangements.
He said that the agricultural investments often occurred far from major urban centres, making security an important consideration for investors.
Abdulhameed said that serving military personnel and veterans, particularly those from the armed forces would be among the groups to be considered for participation.
He said that the partners also planed to deploy technology, innovation and improved farming skills to raise productivity and maximise available land.
The Group Managing Director of Defence Holding Company Limited, Air Vice Marshal A.V. Ndache, said that the Memorandum of Understanding (MoU) covered agriculture, hospitality and other investment areas.
He said that more detailed agreements would be developed for individual projects as the partnership progressed.
Ndache said that the initiative was intended to improve national productivity, as food security remained a priority for President Bola Tinubu’s administration.
themomentng reports that partners have not disclosed specific production targets, the number of hectares to be cultivated, expected number of jobs that will be created or the total funding required.
They said details of individual projects would be made public as they became ready for implementation.
