The federal government is partnering with military-linked investment institutions to attract private capital into large-scale agricultural projects in insecurity-hit areas, targeting investments in soybean production in Yobe and sugarcane cultivation in Jigawa.
The initiative brings together the Ministry of Finance Incorporated (MOFI), Integranium Holdings and the Defence Agricultural Assets and Projects Development Company (DAPCO), with support from Defence Holding Company Limited, to address security risks that have discouraged investors from committing funds to commercial farming.
The projects are among several agricultural opportunities identified by the partners, who are developing a framework combining investment mobilisation, security planning and project management to make large-scale farming more attractive to domestic and international financiers.
Femi Ogunseinde, MOFI’s executive director of investments and the official responsible for the Integranium investment framework, said security concerns had been a major obstacle to mobilising capital for agricultural development.
‘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 the partnership would allow the institutions to approach prospective investors with arrangements designed to protect their investments and agricultural operations, particularly in areas where insecurity has disrupted farming.
The initiative is expected to mobilise private-sector and international financing rather than rely solely on public funds. However, the partners have not disclosed the total value of the agreement or confirmed funding commitments for the projects.
Ogunseinde said potential investments of $1 billion to $2 billion had been discussed, but the amounts were not funds already secured under the partnership. He added that at least one project was expected to break ground before the end of the year.
Each project will undergo separate assessments covering financial viability, due diligence, investment potential and value for money before implementation.
Aliyu Abdulhameed, chairman and chief executive officer of DAPCO, said the defence establishment would help ensure agricultural investments in rural areas were supported by appropriate security and operational arrangements.
The partnership is intended to combine the institutions’ respective capabilities to develop commercial farming opportunities across Nigeria, with surrounding communities expected to participate in projects established in their areas.
Abdulhameed said serving military personnel and veterans, particularly those from the armed forces, would also be considered for involvement in the agricultural ventures.
The partners are seeking to leverage Nigeria’s agricultural resources to expand food production for domestic consumption, industrial use and export. Ogunseinde estimated that between 30 million and 35 million hectares of land could be available for farming, offering scope to scale up commercial agriculture.
The initiative also aims to address the impact of insecurity on food production, as abandoned farmland and disrupted farming operations have constrained the country’s ability to meet domestic demand.
Air Vice Marshal A.V. Ndache, group managing director of Defence Holding Company Limited, said the memorandum of understanding signed by the institutions provided a broad framework covering agriculture, hospitality and other investment areas.
More detailed agreements will be developed for individual projects as the partnership progresses, he said, with implementation dependent on further project structuring.
Armstrong Takang, managing director of MOFI’s investment partner, said the agricultural programme could help ease food inflation by increasing local production and expanding demand for inputs supplied by Nigerian businesses.
‘Nigeria needs to make better use of its land, water resources and people to produce sufficient food for households and industries, while generating additional supplies for export,’ Takang said.
He said the projects would focus on bankable agribusiness opportunities capable of attracting public and private investment, with potential benefits extending across the farming value chain.
One potential beneficiary is PFI NPK, the Fertilizer Aggregation Company, which could see demand rise as commercial farming expands. Greater fertiliser use, alongside improved farming practices, could help raise soil productivity and agricultural output.
The partners also plan to deploy technology, innovation and improved farming skills to increase productivity and make better use of available land.
Agriculture was estimated by one of the speakers to contribute between 25 percent and 27 percent of Nigeria’s gross domestic product. The partners said expanding commercial production could strengthen the sector’s economic contribution while improving food security and export capacity.
The memorandum establishes the basis for cooperation, but individual projects must still pass through assessment and structuring before implementation. The partners said further details would be announced as projects become ready for rollout.